TimesheetGuidesSuper and packaging
How Much Can I Salary Sacrifice? Understanding Your Hourly to Annual Pay
For a full-time employee working 38 hours per week, annual gross pay is your hourly rate multiplied by 38 then by 52.
How to Convert Your Hourly Rate to Annual Pay
To work out your annual gross pay, multiply your hourly rate by the number of hours you work each week, then by 52 weeks. This article assumes a standard full-time week of 38 hours, as set by the Fair Work Ombudsman. For example, if you earn $30 per hour:
$30 × 38 hours × 52 weeks = $59,280 per year.
If you work different hours, adjust the weekly figure. The formula is the same for part-time or casual workers, but casual employees usually receive a 25% loading on top of the base rate. The casual loading page explains how to include it.
National Minimum Wage and Award Rates
From 1 July 2026, the National Minimum Wage is $26.44 per hour, or $1,004.90 per week for 38 hours. Casual employees get $33.05 per hour including the 25% loading. Many industries have award rates that are higher than the minimum. The Fair Work Commission sets these rates. Use the minimum wage page to compare.
Fortnightly Pay
If you are paid fortnightly, multiply your weekly pay by 2. For the $30/hour example, weekly pay is $1,140, so fortnightly is $2,280. This helps when budgeting between pay cycles.
Tax and Medicare on Your Annual Pay
Once you have your annual gross figure, you can estimate how much tax and Medicare levy you will owe. The Australian Taxation Office uses the 2026-27 resident tax rates:
- Nil on the first $18,200
- 15% on amounts from $18,201 to $45,000
- 30% on amounts from $45,001 to $135,000
- 37% on amounts from $135,001 to $190,000
- 45% on amounts above $190,000
Plus the Medicare levy of 2% of taxable income. The Medicare levy reduction thresholds for singles in 2025-26 apply here (the 2026-27 thresholds were not confirmed).
For a $59,280 annual income, the tax is:
- Tax on $18,201 to $45,000: ($45,000 - $18,200) × 15% = $4,020
- Tax on $45,001 to $59,280: ($59,280 - $45,000) × 30% = $4,284
- Total tax = $8,304
- Medicare levy = $59,280 × 2% = $1,185.60
- Total deductions = $9,489.60
Your take-home pay would be about $49,790.40 per year.
How Much Can I Salary Sacrifice?
Salary sacrifice allows you to reduce your taxable income by directing part of your pre-tax pay into benefits such as additional superannuation, a car, or other approved items. The question "how much can i salary sacrifice" depends on your income and the caps set by the ATO. For super, the concessional contributions cap is $30,000 per year (including employer super guarantee). If your employer pays 12% on your ordinary earnings, that counts towards the cap. For example, on $59,280, the super guarantee is $7,113.60, leaving $22,886.40 you could sacrifice into super. Salary sacrifice reduces your taxable income, which lowers your tax and Medicare levy. See the super and packaging page for more details.
Super Guarantee and Superannuation
Super guarantee is 12% of your ordinary earnings, paid on top of your gross pay. The maximum contribution base is $270,830. Super is not deducted from your pay; it goes into a fund for your retirement. The average pay page shows average weekly earnings from the Australian Bureau of Statistics (May 2026): full-time adult ordinary time $2,083.70 per week.
Important Notes
This estimate assumes the same rate every week, no unpaid overtime, no penalty rates, no allowances, and no salary sacrifice. Tax is estimated using the 2026-27 resident scale with the full tax-free threshold. Medicare uses the 2025-26 single reduction thresholds because the 2026-27 reduction thresholds were not confirmed. HELP, the Medicare levy surcharge, and salary packaging are not deducted. This is an estimate, not a determination of your pay or tax.
For more detailed calculations, use the timesheet to enter your own hourly rate and optionally add casual loading. Do not enter a rate that already includes casual loading. The timesheet is the home page. Use the reference tables for tables.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.