Gross income is the amount you earn before tax, Medicare levy, and other deductions. It includes your base wage or salary, overtime, allowances, and loadings.
Net income is your take-home pay after PAYG tax, Medicare levy, and any other deductions your employer withholds. This is the amount that actually lands in your bank account.
How PAYG affects net income: Employers withhold tax according to ATO formulas based on your earnings, tax-free threshold selection, and PAYG tables. The tax-free threshold reduces withholding at your primary job.
How the Medicare levy affects net income: Most residents pay a 2% levy on taxable income. Low-income exemptions exist, but they are not modelled in this simplified calculator.
Superannuation and net pay: Employer super is not part of your take-home pay. It is paid into your super fund separately unless your contract says 'including super'. Salary sacrifice into super reduces taxable income but also reduces your take-home salary.
Why net income varies between jobs: Penalty rates, hours worked, allowances, HECS/HELP repayments, additional withholding, and super arrangements all change your actual take-home amount.
Call to action: Use the Australian Pay & Tax Calculator on this site to compare your gross and net income across hourly, weekly, fortnightly, and annual pay.