Pay Rise Calculator Australia: How Much of Your Pay Rise Do You Actually Keep?
Thinking about a pay rise, negotiating a new salary or comparing a job offer? The number that matters most is usually not the headline salary — it is how much extra money actually lands in your bank account.
Our free Australian Pay Rise Calculator gives you a quick estimate of how a salary increase could affect your take-home pay. Enter your current salary and proposed new salary below to compare the difference.
Why your pay rise and your take-home increase are different
Australia uses marginal income tax rates. That means a pay rise does not suddenly cause your whole salary to be taxed at a higher rate. Instead, different portions of your taxable income can be taxed at different rates.
Because of that, a $5,000 or $10,000 increase in salary will usually produce a smaller increase in after-tax pay. The exact result depends on your circumstances and the deductions, levies and repayment obligations that apply to you.
What can affect the result?
Your current taxable income and the size of the proposed salary increase.
PAYG withholding and the marginal tax rates that apply to your income.
The Medicare levy and, where relevant, the Medicare levy surcharge.
HELP or other study and training loan repayment obligations.
Salary packaging, reportable fringe benefits and other employment arrangements.
Whether superannuation is quoted on top of your salary or included within a total remuneration package.
Other income, deductions, offsets and personal tax circumstances.
A higher tax bracket does not make a pay rise pointless
One of the most common misunderstandings is that moving into a higher tax bracket means you can end up worse off after receiving a pay rise. In a normal marginal tax system, only the relevant portion of income is taxed at the higher marginal rate. You do not lose the benefit of the entire pay rise simply because part of your income moves into another bracket.
There can still be other income-based thresholds that affect the final outcome, which is why a calculator is useful as a quick estimate rather than relying on the gross salary increase alone.
When is a pay rise calculator useful?
Before asking your employer for a salary increase.
When comparing two job offers with different salaries.
When deciding whether extra responsibility is worth the additional pay.
When budgeting after an annual salary review.
When comparing a salary package that includes superannuation with one that quotes super separately.
Gross pay is only part of the picture
A salary increase can also have flow-on effects outside your regular payslip. Depending on your situation, changes in taxable income may affect things such as study-loan repayments, family assistance, private health insurance considerations or other income-tested amounts.
For that reason, the calculator is designed as a quick estimate of the pay-rise effect rather than a substitute for a complete tax calculation.
Try the Australian Pay Rise Calculator
Use the Regans Accountants Pay Rise Calculator to compare your current salary with a proposed new salary and get a quick indication of the change in take-home pay.
The calculator provides general information and estimates only. Your actual PAYG withholding and final income tax position can differ depending on your personal circumstances.
Three checks before comparing an offer
Before entering two offers, check their wording. One may quote salary with super on top; another may quote a total package that includes it. Put the figures on a comparable basis first.
Compare three things: the gross salary change, the estimated take-home change and extra costs such as commuting or parking. Keep the financial year and pay settings consistent, then change one assumption at a time.
For a fictional salary changing from $80,000 to $90,000, the gross difference is $10,000. That subtraction is a starting point, not a promised bank-account increase. Read the calculator's inclusions and exclusions before treating its output as useful to your circumstances.
Ask a useful next question
If you want to discuss an offer or salary change, contact Regans with a general description of the question. Please leave TFNs, payslips and private financial documents out of the general enquiry. The team can explain the appropriate way to provide records.
You can also browse the Regans Tax Tools page. General information and estimates only.
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