On tax alone the two are remarkably close, and the answer flips at about £56,000, where both keep 76.7% of gross. Above it Australia edges ahead, by 4.3 points at £120,000.
The bigger difference is not in the table at all. Superannuation is paid on top of your salary, not out of it, so an Australian package is worth more than the tax comparison alone suggests.
They are level at
£56,455
both keep 76.7% of gross
Australia ahead at £120,000
4.3 pts
67.7% against 63.5%
Super
On top
not deducted from your pay
Work out base, super and total package separately.
Open the Salary Package CalculatorWhere the two systems cross
The share of gross kept after income tax and the Medicare levy, with no superannuation deducted because none is. Independent of the exchange rate.
| Equivalent salary | UK keeps | Australia keeps | Who is ahead |
|---|---|---|---|
| £30,000 | 83.7% | 84.4% | Australia ahead by 0.6 pts |
| £56,455 | 76.7% | 76.7% | Level |
| £80,000 | 71.2% | 73.3% | Australia ahead by 2.1 pts |
| £120,000 | 63.5% | 67.7% | Australia ahead by 4.3 pts |
| £200,000 | 58.9% | 61.8% | Australia ahead by 2.9 pts |
The Australian advantage peaks around £120,000 and then narrows, because Australia's 45% top rate begins at A$190,001, a low threshold by international standards, while the UK recovers slightly once its personal allowance taper finishes above £125,140.
Ask whether the number includes super
Australian recruiters quote both base salary and total package including superannuation, often without saying which. The difference is large enough to change a decision on its own. Establish which you are being offered, compare the base against your UK gross, and treat super as an employer-funded benefit sitting alongside whatever your UK employer puts into your pension. A UK pension contribution normally comes out of your pay; Australian super does not.
The Medicare levy, and the surcharge you can avoid
The Medicare levy is 2% of taxable income with a low-income phase-in, and it is already included in the Australian column above. In purpose it is closer to the health funding element of UK taxation than National Insurance is in shape.
Separately there is the Medicare Levy Surcharge, which applies to higher earners without private hospital cover. It is not in these figures because it is avoidable: taking out an appropriate policy removes it, and for many people the policy costs less than the surcharge. Our surcharge calculator shows where that tips.
The same three salaries in cash
Converted at £1 = A$1.8785, European Central Bank reference rates, 23 September 2026, excluding super. Check the live rate; the percentages above do not move with it.
| UK gross | Australian base | UK net | Australian net |
|---|---|---|---|
| £50,000 | A$93,927 | £39,520 (£3,293/mo) | A$73,350 (A$6,113/mo) |
| £80,000 | A$150,282 | £56,957 (£4,746/mo) | A$110,602 (A$9,217/mo) |
| £120,000 | A$225,424 | £76,157 (£6,346/mo) | A$153,605 (A$12,800/mo) |
Add the employer's superannuation contribution on top of the Australian base to get the true package value. It is not reflected anywhere in this table.
How these figures were produced
PayMetric Labs' own calculations with our UK and Australian tax engines. Australia uses the 2026-27 resident brackets, in which the second-tier rate drops to 15% from 1 July 2026, plus the 2% Medicare levy with its low-income phase-in. No superannuation, no Medicare Levy Surcharge, no HELP repayments; no UK pension contributions, salary sacrifice or student loan.
Compare your own two offers
Separate base from super first, then compare base against UK gross.
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Frequently asked questions
Does the UK or Australia leave you with more of your salary?
It flips at about £56,000. Below that they are close, with the UK slightly ahead through the middle. At £56,455 the two are level, both keeping 76.7% of gross. Above it Australia pulls ahead, by 4.3 points at the equivalent of £120,000.
Is superannuation taken out of my salary?
No, and this is the single most important difference for an offer comparison. Australian superannuation is an employer contribution paid on top of your salary, not a deduction from it. None of the percentages on this page include it. A UK pension contribution, by contrast, normally comes out of your pay. So an Australian package is worth more than the same headline figure suggests, and a UK one less.
So how should I compare an Australian offer to a UK one?
Establish first whether the Australian figure quoted is base salary or total package including super, because Australian recruiters use both and the difference is material. Then compare base against UK gross, and treat super as a separate employer-funded benefit alongside whatever the UK employer contributes to your pension.
What is the Medicare levy and is it like National Insurance?
It is 2% of taxable income, with a low-income phase-in, and it is included in the Australian figures on this page. It funds Medicare, so it is closer in purpose to the health element of UK taxation than National Insurance is in shape. There is also a Medicare Levy Surcharge for higher earners without private hospital cover, which is avoidable by taking out cover and is not in these figures.
Why does the Australian advantage peak and then shrink?
Australia's top marginal rate of 45% starts at A$190,001, which is a relatively low threshold by international standards, so the Australian line turns down again above the equivalent of about £120,000. The UK meanwhile recovers slightly once the personal allowance taper is complete above £125,140. The two effects narrow the gap at the top.
What about HECS or HELP repayments?
If you studied in Australia and carry a HELP debt, repayments are income-contingent and come out on top of the tax in these figures, much as a UK student loan does. Someone moving from the UK with a UK student loan will usually still owe repayments on it while overseas, which is a common and expensive thing to overlook.
How reliable is the currency conversion here?
Treat it as illustrative and check the live rate. The percentages are the durable part, because the share of gross you keep does not depend on the exchange rate. The rate used is stated and dated beside the cash table above, and comes from the European Central Bank's daily reference rates.
What does this comparison leave out?
Superannuation, which favours Australia and sits outside these figures entirely. The Medicare Levy Surcharge and private health cover. Salary packaging and novated leases, which are common Australian structures with real tax effects. UK pension salary sacrifice. And state payroll tax, which is an employer cost rather than an employee deduction.
Figures are PayMetric Labs' own calculations using our UK and Australian tax engines, Australia at 2026-27 rates including the 2% Medicare levy, against a single UK taxpayer with no pension contributions or student loan. Superannuation, the Medicare Levy Surcharge and HELP repayments are excluded. Currency conversions use £1 = A$1.8785, European Central Bank reference rates, 23 September 2026 and will drift; the percentages do not depend on the rate. General information only, not personal tax advice.