PayClear

How We Calculate

Income Tax

We use the ATO's progressive tax brackets for the selected financial year. Tax is calculated using the "base + rate on excess" method — you only pay the higher rate on income above each threshold. We support resident, non-resident, and working holiday maker rates.

Low Income Tax Offset (LITO)

Residents earning under $66,667 receive a tax offset of up to $700. The full offset applies below $37,500 and phases out linearly above that. This is automatically applied to your calculation.

Medicare Levy

A 2% levy funds Australia's public health system. Residents earning below $26,000 are exempt. High earners ($93,000+) without private hospital cover pay an additional Medicare Levy Surcharge of 1–1.5%.

HECS/HELP Repayment

If you have a government student loan, compulsory repayments are calculated on your Repayment Income. The rate ranges from 1% to 10% depending on your income. Repayments only begin once your income exceeds $54,435 (2025-26).

Superannuation

Your employer must contribute 12% (2025-26) of your ordinary time earnings into your super fund. If your salary is quoted "inclusive of super," we back-calculate the base salary. Salary sacrifice reduces your taxable income but is capped at the concessional limit ($30,000 including employer contributions).

Division 293

High earners whose income plus super contributions exceed $250,000 pay an additional 15% tax on their concessional super contributions (or the amount over the threshold, whichever is less).

Sources