Last Updated: 27th April, 2023

Work out your net income for a home loan

Enter your gross salary in our calculator and it will let you know the amount of tax that you will pay and your final net income.

Once you know your net income, you can then work out how much you can borrow.

Ready to apply for a home loan?

Call us on 1300 889 743 or complete our online enquiry form and we can let you know your borrowing power.

Are the tax scales current?

We regularly update the calculator with current tax scales to make sure that the tax payable is correct for differing income brackets. However, we recommend that you use a calculator on the ATO website or contact your Accountant/Tax Agent to confirm the tax you will pay.

Note: this calculator does not take tax offsets or negative gearing into account. Please use it as a guide only.

Budget 2020-2021 income tax cuts: How much will you save?

The federal government brought forward some planned tax cuts to the 2020-21 financial year.

What this means is that many taxpayers will see tax reductions starting this financial year – backdated to 1 July 2020. This will be done by adjusting the income tax brackets.

Here’s how much you’re expected to save on tax due to the cuts:

Your annual income Tax savings (tax relief)
Up to $37,000 Up to $510
$37,001 to $48,000 Between $510 and $2,160
$48,001 to $90,000 Between $2,160 and $2,295
$90,001 to $126,000 Between $2,295 and $2,745

Currently, workers earning up to $37,000 pay 19 cents in tax for each $1 over $18,200. This tax bracket will be increased to include those earning up to $45,000 a year. This means those earning between $37,001 and $45,000 will stay in the 19-cent tax bracket instead of being bumped up to the next bracket, which is taxed at $3,572 plus 32.5 cents for each $1 over $37,000.

Similarly, the upper limit of this 32.5-cent income bracket will be lifted from $90,000 to $120,000.

When will I get this tax back?

These tax reliefs are subject to legislation passing parliament.

After the rules change, the amount of income tax withheld on your pay will be slightly less for the remainder of the year, and you’ll take home slightly more money as a result.

Any excess tax you end up paying between 1 July 2020 and when the rules change will be refunded when you submit your 2020/2021 tax return.

Please seek qualified financial advice from a financial advisor or accountant on taxation.

Gross or net income?

Your gross income is your pre-tax income excluding any superannuation paid by your employer. This is the same as your taxable income unless you have pre-tax deductions taken from your pay.

Your net income is your after tax income. Unless you have post tax deductions from your pay then your net income is the same as the amount that you receive in your bank account.

For example if you earn $109,000 p.a. which includes $9,000 of superannuation then your salary package is worth $109,000, your gross income is $100,000, your tax withheld would be around $26,000 and your net income would be around $74,000.

Find out how much you can borrow

Once you know your net income, you can use this to work out a draft budget. You can then use our how much can I borrow as well as our other home loan calculators to work out the maximum amount that you can comfortably afford to repay.