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In the 2021–22 financial year, a $40,000 salary was $36,533 a year after income tax and the Medicare levy — about $3,044 a month or $703 a week for an Australian resident.
That figure is for one fixed scenario: a resident who claims the tax-free threshold, holds private hospital cover, so no Medicare levy surcharge applies and has no HELP, HECS or other study loan debt. Change any of those and the take-home figure changes with it.
Looking for today’s figure? $40,000 after tax in Australia → This page is an archive of the 2021–22 rates — the live page has the current 2026–27 figures.
These are the 2021–22 ATO rates and thresholds, fixed and archived. They do not change.
In 2026–27, $40,000 takes home about $36,725 a year — $192 more than in 2021–22, reflecting the Stage 3 tax cuts and the $1,000 automatic standard work-expense deduction, partly offset by the end of the LMITO.
$40,000 after tax in Australia (current rates) →How the tax brackets changed by year →
Anyone reconciling a group certificate from this year will find the tax on this salary lower than the bracket alone suggests. Both the low income tax offset and the low and middle income tax offset applied, and the second of those has since been abolished, so no recent year repeats that combination. The income tax here also predates the Stage Three cuts, making it heavier than the same salary attracts now. Employer super sat at a rate below today's, in the middle of the range this site publishes, so the contribution built more slowly than it would today.
In the 2021–22 financial year, a $40,000 salary left about $36,533 a year after income tax and the Medicare levy (an Australian resident claiming the tax-free threshold) — roughly $3,044 a month, $1,405 a fortnight or $703 a week.
On $40,000 in 2021–22 you paid about $2,667 in income tax (after offsets) plus $800 Medicare levy — $3,467 in total.
Yes. In 2021–22 the LMITO reduced your tax by about $900 at this income. The LMITO ended after the 2021-22 year, which is why take-home pay on the same salary fell in 2022-23.
In the current 2026–27 financial year, $40,000 takes home about $36,725 a year. See the current $40,000 after tax page for the live breakdown.
See how take-home pay on $40,000 changed across recent financial years.
Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.
This calculator exists to show you the arithmetic. It applies published Australian rates, thresholds and formulas to the numbers you enter and shows the working, so you can check it. That is all it does — it produces a number and describes what the number is. It does not recommend anything and it holds no opinion about any financial product.
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This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Before you make a financial decision, consider obtaining advice from someone who holds an Australian Financial Services Licence. We do not, and we cannot advise you.