Understanding Your Australian Payslip
Updated 2026-06-11 · 2026-27 financial year · 7 min read
Your payslip is a legal document showing your earnings and deductions for each pay period. This guide explains every line — from gross pay and PAYG tax to superannuation and HECS repayments.
Payslip Line by Line
| Item | What It Means |
|---|---|
| Gross Pay | Your total earnings before any deductions. Includes base salary, overtime, allowances, and commissions. |
| PAYG Withholding | Income tax withheld by your employer and sent to the ATO. Based on your salary, TFN declaration, and whether you've claimed the tax-free threshold. |
| HECS/HELP Repayment | Compulsory student loan repayment withheld if you have a debt and earn above $67,000 (2025-26 threshold). |
| Salary Sacrifice | Pre-tax contributions to super or other benefits. Reduces your taxable income. |
| Net Pay | What lands in your bank account — gross pay minus PAYG withholding, HECS, and any other deductions. |
| Superannuation | Employer contribution at 12% of your ordinary time earnings (2026-27). Paid to your nominated super fund, not shown in net pay. |
| YTD (Year to Date) | Running total of earnings and deductions since 1 July (the start of the Australian financial year). |
Why Your Net Pay Might Not Match Our Calculator
Our pay calculator uses standard ATO assumptions. Your actual net pay may differ if:
- You haven’t claimed the tax-free threshold — if you work multiple jobs and only claim the threshold at one employer
- You have salary sacrifice — reduces your taxable gross before PAYG is calculated
- Your employer is withholding HECS — check your TFN declaration
- You have a HELP (VSL, SSL, ABSTUDY) debt in addition to HECS
- You’re on a Working Holiday Maker visa — different tax rates apply
The Pay Formula
Frequently Asked Questions
What is PAYG withholding on my payslip?
PAYG (Pay As You Go) withholding is income tax your employer deducts from each pay and sends to the ATO on your behalf. It's an estimate of your annual tax liability divided across pay periods. At tax time, the ATO reconciles your actual tax against what was withheld.
Is superannuation included in my gross pay?
No — employer superannuation is paid on top of your gross salary. If your employment contract says '$90,000 plus super', your gross on your payslip will be $90,000 and super is separate. If your contract is '$99,000 total package inclusive of super', then about $8,182 of that goes to super and roughly $90,818 is your gross salary.
Why is my net pay different from what I calculated?
Common reasons include: HECS repayments (if you've declared a HECS debt), salary sacrifice amounts reducing your taxable income, reportable fringe benefits, or a different tax scale (e.g., no tax-free threshold claimed, foreign resident tax rates). Use our pay calculator and match the settings to your situation.
What does 'ordinary time earnings' mean on my payslip?
Ordinary time earnings (OTE) is the base salary used to calculate your superannuation guarantee. It excludes overtime but includes allowances, commissions, and shift loadings. Your employer must pay 12% super on your OTE.
Check your own take-home pay
See a full breakdown matching your payslip — gross pay, PAYG, Medicare, HECS and super.
Pay Calculator →