How much of a pay rise do you actually keep in Australia in 2026-27?

A middle-income earner ($45,001 to $135,000) keeps 68 cents of each extra dollar after 30% income tax and the 2% Medicare levy (ATO 2026-27 rates). With a HECS/HELP debt above $69,528 that drops to 53 cents, and a family losing Family Tax Benefit Part A at 20 cents per dollar can keep 33 cents or less. This calculator computes your exact figure by comparing your full net position before and after the extra income.

What is an effective marginal tax rate (EMTR)?

Your effective marginal tax rate is the share of your NEXT dollar of income lost to income tax, the Medicare levy, HECS/HELP repayments, and the withdrawal of payments such as Family Tax Benefit, Child Care Subsidy and JobSeeker. It is often far higher than your tax bracket: a single parent on $90,000 with two children and a HECS debt faces an EMTR of about 67% in 2026-27 — they keep about 33 cents of each extra dollar.

Does earning more mean I repay HECS on my whole income?

No. Since 1 July 2025 HECS/HELP repayments use a marginal system. For 2026-27 you repay nothing below $69,528, 15 cents per dollar on income between $69,529 and $129,717, then $9,028 plus 17 cents per dollar up to $186,050, and 10% of total repayment income above that (ATO). Note that HECS is assessed on repayment income, which adds reportable fringe benefits, reportable super contributions and net investment losses to your taxable income.

What is the Family Tax Benefit $80,000 supplement cliff?

The end-of-year FTB Part A supplement — up to $970.90 per child — is only paid if your family's adjusted taxable income is $80,000 or less (Services Australia). It is an all-or-nothing limit, not a taper: a pay rise that moves a two-child family from $80,000 to $80,001 costs the full $1,941.80 in supplements. This calculator warns you when your extra income crosses the limit.

Worth Working More? Extra Income Calculator

Authorised Employment Hero Partner

Employment Hero

Australian HR, payroll, rostering and award interpretation in one platform. Used by 300,000+ businesses. Fixes the underlying payroll/compliance issues our calculators surface.

Best for: SMEs that have outgrown spreadsheet payroll or want automated award interpretation.

See Employment Hero

HR support partner

Liquid HR

Senior, hands-on HR support for your toughest workforce challenges — performance and conduct, grievances and mediation, redundancy and change. Liquid HR picks up where the technology ends.

Best for: employers and individuals who need a human HR professional to guide a workplace situation, not just a calculator.

Talk to Liquid HR

IT, Microsoft & cyber partner

Frontrow Tech

Microsoft 365, Copilot rollouts, Essential Eight, Privacy Act 2026 and board-level cyber compliance for Australian SMBs. Where pay and HR end, your data and IT obligations begin.

Best for: SMBs running on Microsoft 365, anyone hitting cyber/privacy compliance, boards wanting an outside read on IT risk.

See Frontrow

Recommended partners — we only recommend partners we've vetted as a good fit for Australian workplaces. Some partnerships help fund the free tools on this site.

Worth Working More? Extra Income Calculator

Related Tools

Recommended partners

Employment Hero

Liquid HR

Frontrow Tech