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In the 2021–22 financial year, a $40,000 salary was $36,425 a year after income tax and the Medicare levy — about $3,035 a month or $700 a week for an Australian resident.
In 2026–27, $40,000 takes home about $36,397 a year — $28 less than in 2021–22, reflecting the Stage 3 tax cuts and the end of the LMITO.
$40,000 after tax today →How the tax brackets changed by year →
In the 2021–22 financial year, a $40,000 salary left about $36,425 a year after income tax and the Medicare levy (an Australian resident claiming the tax-free threshold) — roughly $3,035 a month, $1,401 a fortnight or $700 a week.
On $40,000 in 2021–22 you paid about $2,775 in income tax (after offsets) plus $800 Medicare levy — $3,575 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 $36,397 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.
ATO rates checked against official sources — verified 3 July 2026
Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.
Rates and thresholds last updated for the 2026–27 financial year.