📖 Beginner guide
How to Read Your Australian Payslip
What every line actually means — gross pay, tax withheld, super, net pay, leave balances, and what to check every pay cycle.
📄 Beginner guide·5 min read·Updated March 2026
Salary After Tax Calculator
Check if your take-home matches what it should be →
Every line explained
Gross pay
Your total earnings before any deductions. Includes base salary, overtime, allowances, and bonuses. This is what your employment contract refers to as your salary.
Ordinary hours / base salary
Your regular pay for standard hours worked. Usually the largest line item.
Overtime / allowances
Additional pay for extra hours, shift penalties, travel allowances, tool allowances, etc. These are usually taxed the same as regular income.
Tax withheld (PAYG)
Income tax withheld by your employer on behalf of the ATO. This is based on your gross taxable income and the tax table that applies to your situation (whether you claimed the tax-free threshold, have HECS, etc).
Medicare levy withheld
The 2% Medicare levy, usually included in the 'tax withheld' figure rather than shown separately. Some payslips break this out.
HECS/HELP repayment
If you have student debt and earn above the repayment threshold (~$54,000), your employer withholds an additional amount. This shows as a separate line on some payslips or is included in total tax withheld.
Superannuation
Your employer's 12% Super Guarantee contribution. This is paid to your super fund, not to you directly. It should be shown on every payslip even though it doesn't appear in your bank account.
Salary sacrifice
Pre-tax contributions you've agreed to redirect — commonly to super, a novated car lease, or other approved benefits. Reduces your taxable gross.
Net pay
What actually hits your bank account. Gross pay, minus tax, minus any pre-tax or post-tax deductions. This is the most important number to check against your bank statement.
Leave balances
Most payslips show your accrued annual leave, personal/sick leave, and sometimes long service leave. Annual leave accrues at 4 weeks per year (for full-time employees). Sick leave is typically 10 days per year.
YTD (Year to Date)
Cumulative totals since the start of the financial year (1 July). Useful for checking your total income, tax paid, and super for the year when completing your tax return.
What to check every pay cycle
✓
Net pay matches your bank
Obvious but worth checking — errors happen
✓
Super is being paid
Check your super fund app or log in each quarter
✓
Tax withheld looks right
Use our salary calculator to sanity-check
✓
Leave balance is accruing
Should increase each pay period
✓
HECS withheld if applicable
Should appear if you earn above the threshold
✓
YTD income is tracking
Useful reference at tax time
Frequently asked questions
What if my employer isn't paying super?
You can check whether super has been paid by logging into your super fund account and checking the contributions history. Super is typically paid quarterly (by 28 October, 28 January, 28 April, and 28 July), not necessarily with each pay. If payments are missing, contact your employer first. If that doesn't resolve it, report it to the ATO via ato.gov.au — they have a dedicated super non-compliance team.
Why is my tax withheld higher than I expected?
Common reasons: you have HECS-HELP debt (an extra 1–10% is withheld), you didn't claim the tax-free threshold (happens if you ticked 'No' on your TFN declaration), you have a HELP debt, you worked overtime which pushed you into a higher bracket for that pay period, or your employer withheld at a higher rate by mistake. Check your myGov tax withholding settings and TFN declaration with your employer.
What is salary packaging and how does it appear on a payslip?
Salary packaging (or salary sacrifice) lets you pay for certain expenses from pre-tax income, reducing your taxable salary. Common items are super, novated car leases, and (for some employers) meal entertainment or laptop/phone. On your payslip it typically appears as a deduction labelled 'Salary Sacrifice' or 'Pre-tax deduction', reducing your gross taxable income before tax is calculated.
What's the difference between gross and taxable income on a payslip?
Gross income is your total earnings before any deductions. Taxable gross is what tax is actually calculated on — it may be lower if you have salary sacrifice deductions (super, novated lease, etc). Tax is withheld on the taxable gross, not the full gross. This is why salary packaging can reduce your tax bill.