Published: 1 August 2024
How to Read Your Australian Payslip
Getting your first payslip in Australia can be confusing. There are multiple lines, deductions, and acronyms that aren't immediately obvious. This guide walks through every section of a typical Australian payslip in plain English.
What is a Payslip?
Under Australian law, employers are required to provide employees with a payslip within one working day of each pay day. The payslip must show specific information including your gross pay, deductions, and net pay.
Gross Pay vs Net Pay
Gross pay is the total amount you've earned before any deductions. If your annual salary is $80,000 and you're paid monthly, your gross monthly pay is $6,667.
Net pay (also called "take-home pay") is what actually lands in your bank account after tax and other deductions are removed. This is the number most people care about.
Tax Withheld (PAYG Withholding)
Your employer withholds income tax from your pay on behalf of the Australian Taxation Office (ATO). This is called Pay As You Go (PAYG) withholding. The amount withheld depends on:
- Your total annual salary
- Whether you've claimed the tax-free threshold
- Your residency status (resident, non-resident, or working holiday maker)
- Any tax offsets you've claimed on your Tax File Number (TFN) declaration
If too much tax is withheld during the year, you'll receive a tax refund when you lodge your tax return. If too little is withheld, you'll have a tax debt to pay.
Medicare Levy
Most Australian residents pay a 2% Medicare levy on their taxable income. This is often already included in your PAYG withholding amount rather than shown as a separate deduction, but some payslips do list it separately.
The Medicare levy funds Australia's public healthcare system. Some people are exempt (e.g., certain low-income earners and foreign residents).
Superannuation
Superannuation (super) is Australia's compulsory retirement savings system. Your employer must contribute at least 12% of your ordinary time earnings into a super fund on your behalf (FY 2025-26)).
This amount is paid on top of your salary — it doesn't reduce your take-home pay. However, it is part of your total remuneration package. Super contributions are taxed at 15% within the fund, which is lower than most people's income tax rate.
Your payslip should show the super contribution made for that pay period. Check this regularly to ensure your employer is paying the correct amount.
Other Common Deductions
- Salary sacrifice: Voluntary pre-tax contributions to super or other benefits
- Workplace giving: Charitable donations deducted from your pay
- Union fees: If you're a union member
- HECS-HELP repayments: Student loan repayments if your income exceeds the threshold (~$67,000 in 2025-26)
Year-to-Date (YTD) Figures
Most payslips show both the current period amounts and year-to-date (YTD) totals. YTD shows the cumulative total since the start of the financial year (1 July). This is useful for tracking your total tax paid and can help you estimate your tax return outcome.
How to Check If You're Being Paid Correctly
Use our Take-Home Pay Calculator to verify your expected net pay. If the numbers don't match, check:
- Whether you've correctly claimed the tax-free threshold with your employer
- Whether your tax code / TFN declaration is up to date
- Whether you have a HECS-HELP debt that's being repaid
If you believe your employer is not paying your super correctly, you can report this to the ATO using their online tool.
Want to calculate your take-home pay?
Try our Take-Home Pay Calculator →