How does salary packaging affect my annual pay calculation?

Salary packaging (or salary sacrifice) reduces your taxable income by directing pre-tax dollars to benefits like a car or super. Our salary packaging calculator Victoria helps you estimate the net effect on your annual pay, but the annual gross figure here assumes no salary sacrifice. For a full estimate, you need to subtract the packaged amount from your gross before applying tax.

What tax and Medicare levy are deducted from my annual salary?

For 2026–27, resident tax rates 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, and 45% above $190,000. The Medicare levy is generally 2% of taxable income. These are applied to your annual gross after any salary packaging adjustments.

Is superannuation included in the annual pay shown here?

No. Super guarantee is 12% of ordinary earnings, paid on top of your gross pay, up to the maximum contribution base of $270,830. The annual figure here is your gross salary before super. Your employer pays super separately, so your total remuneration is gross plus super.

Use Our Salary Packaging Calculator Victoria: Convert Hourly to Annual Pay

Based on a 38-hour week, annual gross pay is hourly rate × 38 × 52, before tax and super.

How to Convert Your Hourly Rate to Annual Pay

To convert an hourly rate to an annual salary, multiply the hourly rate by the number of hours worked per week, then by 52 weeks. For a full-time employee, we assume a standard 38-hour week, as set by the Fair Work Commission. The formula is:

Annual gross pay = hourly rate × 38 hours × 52 weeks

For example, at the National Minimum Wage of $26.44 per hour (from 1 July 2026), the annual gross is $26.44 × 38 × 52 = $52,245.44. If you are a casual employee, you receive a 25% loading on top of the base rate, making it $33.05 per hour, which gives an annual gross of $65,306.80. Remember, the loading is applied to the base rate, so never enter a rate that already includes casual loading into our the timesheet – just tick the casual loading checkbox.

Fortnightly Pay and Weekly Pay

Your fortnightly gross is simply your weekly pay multiplied by 2. Weekly pay is hourly rate × 38 hours. For the minimum wage, weekly pay is $1,004.90, so fortnightly is $2,009.80. This helps when comparing salary offers or budgeting. Our pay guides provide award-specific rates that may differ from the minimum.

Understanding Different Pay Rates

Australia has several types of pay rates:

National Minimum Wage: $26.44/hour for permanent employees (38-hour week).
Award rates: Industry-specific minimums set by the Fair Work Commission, often higher than the national minimum.
Casual loading: An extra 25% on top of the base rate (or award rate) to compensate for lack of leave entitlements.
Superannuation: 12% of ordinary earnings, paid on top of your gross pay by your employer, up to the maximum contribution base of $270,830.

Our reference tables list current award rates, but always check your specific award or agreement. The figures here are estimates only.

Tax and Medicare on Your Annual Pay

Once you have your annual gross, you can estimate tax using the 2026–27 resident tax rates:

$0 – $18,200: nil
$18,201 – $45,000: 15% on excess over $18,200
$45,001 – $135,000: 30% on excess over $45,000
$135,001 – $190,000: 37% on excess over $135,000
$190,001 and above: 45% on excess over $190,000

Plus the Medicare levy of 2% (generally). For example, on a $70,000 annual gross, tax is approximately $12,092 plus Medicare $1,400, leaving about $56,508 before any other deductions.

If you are considering salary packaging, our salary packaging calculator victoria can help you estimate the impact on your take-home pay. Salary packaging reduces your taxable income, which may lower your tax bracket and Medicare levy. However, the annual pay calculation here assumes no salary sacrifice.

Superannuation: Paid on Top

Your employer must pay super guarantee of 12% on your ordinary earnings (up to $270,830 per year). This is not deducted from your gross pay; it is an additional cost to your employer. For a $70,000 salary, super is $8,400 per year, making total remuneration $78,400. Our super and packaging page explains how salary packaging can affect super contributions.

Using the Salary Packaging Calculator Victoria

If you live or work in Victoria, the salary packaging calculator victoria is tailored to your state’s average earnings. According to the Australian Bureau of Statistics, full-time adult ordinary time earnings in Victoria were $2,041.10 per week in May 2026. That equates to an annual salary of about $106,137.20 (for 38 hours). This is an average, not the median for any specific job. For your own rate, use our hourly conversion tool.

Casual Loading and Award Rates

Casual employees receive a 25% loading on top of the base hourly rate. For award-covered roles, the base rate may be higher than the national minimum. Always check your award or enterprise agreement. Our casual loading page has more details. Remember, the loading is applied to the base rate; do not enter a rate that already includes loading.

Important Disclaimer

The annual pay shown here is an estimate: hourly rate × hours per week × 52. It assumes the same rate every week, no unpaid overtime, no penalty rates, no allowances, and no salary sacrifice. Super is estimated at 12% of ordinary earnings only, paid on top, and stops at the $270,830 maximum contribution base. Tax uses 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 here. HELP, the Medicare levy surcharge, and salary packaging are not deducted. This is an estimate, not a determination of your pay or tax.

For a more tailored estimate, including salary packaging, use our salary packaging calculator victoria and consult a tax professional. You can also explore average pay for industry benchmarks, or job pay for specific roles. Remember, the National Minimum Wage is the legal floor; your actual pay may be higher under an award or agreement.