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What is a software engineer salary in Sydney? Gross pay, super, and tax explained
Understand what a software engineer salary in Sydney means in gross pay, superannuation, and tax. Compare against the national index and NSW benchmarks.
A precise figure for a software engineer salary in Sydney is not publicly available from official sources, but using national data and the NSW state index (101.2), a typical full-time salary likely exceeds the national line of $108,352 per year.
What does a software engineer salary in Sydney look like?
If you are searching for a software engineer salary in Sydney, you are probably trying to work out what you might earn, how much super goes on top, and what you will actually take home after tax. The short answer is that no single official number exists for Sydney. The Australian Bureau of Statistics (ABS) and Jobs and Skills Australia do not publish a median weekly earning for the 6-digit occupation Software Engineers (ANZSCO 261313) because the sample is too small. But we can piece together a reliable picture using national benchmarks, industry data, and the state index for New South Wales.
Gross pay: where does Sydney sit on the index?
The Salary Index sets 100 as the national line for full-time adult ordinary-time earnings. Based on ABS Average Weekly Earnings for May 2026, that line is $2,083.70 per week, annualised to $108,352. The index for New South Wales is 101.2, meaning the typical full-time worker in NSW earns about $109,658 per year. For software engineers, the picture is brighter. The industry most software engineers work in – Professional, Scientific and Technical Services – has an index of 114.7, or about $124,300 annualised. That is a useful starting point.
Nationally, the ABS reports that Professionals (the broad occupation group) had median weekly earnings of $1,900 in August 2025, which is $98,800 per year. But software engineers are a higher-paid subset. The ABS Employee Earnings and Hours survey (May 2025) shows average weekly total cash earnings for all employees in Information Media and Telecommunications at $2,304.80, and in Financial and Insurance Services at $2,181.20. Both are common industries for software engineers. Taking those averages, a software engineer in Sydney might reasonably earn between $110,000 and $130,000 gross per year, depending on experience, company size, and specific role.
It is important to note that most software engineers are paid by individual arrangement, not under a modern award. The Fair Work Ombudsman does not set a minimum for this occupation beyond the national minimum wage ($26.44 per hour from 1 July 2026). So salaries are market-driven. A junior or graduate software engineer in Sydney might start around $70,000 to $85,000, while a senior engineer could earn $150,000 or more. The index helps you compare: a $120,000 salary gives an index of about 111, well above the national line.
Superannuation: the 12% on top
When you see a software engineer salary in Sydney quoted as gross pay, remember that superannuation is additional. From 1 July 2026, the super guarantee is 12% of ordinary-time earnings, up to a maximum contribution base of $270,830. On a $120,000 salary, the employer must contribute $14,400 per year into your super fund. That money is not accessible until retirement, but it is part of your total remuneration package. The Salary Index uses gross ordinary-time earnings before super, so the index figure does not include super. When comparing job offers, always check whether the quoted figure is base salary or total package (including super).
Tax: what you take home
Resident tax rates for 2026–27 (excluding Medicare) are progressive:
- Nil on the first $18,200
- 15% on income from $18,201 to $45,000
- 30% on income from $45,001 to $135,000
- 37% on income from $135,001 to $190,000
- 45% on income above $190,000
Plus a 2% Medicare levy on taxable income. For a gross salary of $120,000, the estimated tax and Medicare is about $29,667, leaving a take-home of roughly $90,333 per year, or $1,737 per week. This estimate assumes you claim the tax-free threshold and have no HELP debt, salary sacrifice, or Medicare levy surcharge. If you have a HECS-HELP loan, an additional 1% to 2% repayment kicks in once your income exceeds the threshold.
How to use the index for your own salary
The Salary Index lets you compare any gross annual salary against the national line. Divide your yearly gross pay by $108,352 and multiply by 100. If you earn $130,000, your index is 120. That means you earn 20% above the typical full-time worker. For Sydney, the state index of 101.2 is a useful local benchmark. If your index is above 101.2, you are earning more than the average NSW worker.
Where to find more information
For official data, the Australian Bureau of Statistics publishes Employee Earnings and Hours and Weekly Earnings reports. The Jobs and Skills Australia occupation profile for Software Engineers gives employment numbers and demographics, though not median pay. For award rates and minimum wages, the Fair Work Ombudsman website is the authoritative source. Remember that most software engineers are not covered by awards, so those minimums are a floor, not a target.
If you are comparing salaries across states, check the states page for index values. For industry comparisons, see the industries page. And for more on how the index is calculated, read how the index works.
The bottom line
A software engineer salary in Sydney is not published as a single figure, but the evidence points to a range of $110,000 to $130,000 for a typical full-time role, with senior roles going higher. That puts Sydney software engineers well above the national line, reflecting the city's strong professional services and tech sectors. When evaluating an offer, always consider gross pay, super, and tax together to understand your real financial position.
Questions people ask
What is the typical gross salary for a software engineer in Sydney?
There is no single published figure for Sydney. National data from the Australian Bureau of Statistics shows that Professionals earn a median of $1,900 per week ($98,800 annualised) as of August 2025, but software engineers often earn more. Using the NSW state index of 101.2 (annualised $109,658) as a benchmark, a software engineer in Sydney might earn between $110,000 and $130,000 gross per year, depending on experience and industry. This is an estimate; actual salaries vary widely.
How does superannuation affect a software engineer salary in Sydney?
Superannuation is paid on top of gross salary. From 1 July 2026, the super guarantee rate is 12% of ordinary-time earnings, up to a maximum contribution base of $270,830. For example, on a $120,000 gross salary, the employer would contribute an additional $14,400 per year into super. This is not included in the salary index figure, which measures gross ordinary-time earnings before super. When comparing total remuneration, add the super contribution.
How much tax will a software engineer in Sydney pay on their salary?
For the 2026–27 financial year, resident tax rates (excluding Medicare) are: nil up to $18,200; 15% from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; 45% above $190,000. Plus a 2% Medicare levy. For a gross salary of $120,000, the estimated tax (including Medicare) would be about $29,667, leaving a take-home of roughly $90,333 per year. This ignores HELP repayments, salary sacrifice, or the Medicare levy surcharge.