A Head of Engineering earning the median salary of A$257K in Australia takes home approximately $170,340/year ($14,195/month) after Income Tax and the Medicare Levy, using 2026-27 rates.
2026 median salary for each level in Australia, and what it leaves after Income Tax and the Medicare Levy. Australian resident individual, no HECS-HELP. 2026-27 rates.
| Level | Gross / year | Take-home / year | Per month | Effective rate |
|---|---|---|---|---|
| Junior | $198,000 | $139,070$11,589/mo | $11,589 | 29.8% |
| Mid-levelHeadline median | $257,000 | $170,340$14,195/mo | $14,195 | 33.7% |
| Senior | $324,000 | $205,850$17,154/mo | $17,154 | 36.5% |
| Lead / Principal | $414,000 | $253,550$21,129/mo | $21,129 | 38.8% |
The biggest pay step is Senior to Lead / Principal: $90,000 more a year before tax, of which $47,700 reaches take-home. 47% of that raise goes to Income Tax and the Medicare Levy, against an average 36% on the Senior salary, because the extra pay is taxed at the top of your bands rather than spread across all of them.
For Mid-level roles, the middle half of Head of Engineering salaries in Australia run from $242,000 to $271,000 a year, which is $162,390 to $177,760 after Income Tax and the Medicare Levy.
The table above uses the Head of Engineering median. Enter your own gross salary below for a precise figure.
2026-27 tax year
Tax-free up to $18,200. 15% to $45,000. 30% to $135,000. 37% to $190,000. 45% above. Plus 2% Medicare Levy.
Common salaries:
Estimated annual take-home pay
$170,340
Per fortnight
$6,552
Per month
$14,195
Per week
$3,276
Effective tax rate
33.7%
Employer superannuation (on top, not deducted)
$30,840/year
Under the Super Guarantee, your employer must pay an extra 12.0% of your ordinary time earnings into your super fund on top of your salary. This is not subtracted from your take-home pay above: it's a separate, additional payment your employer makes on your behalf toward retirement.
How your $257,000 annual salary is split
$170,340
66.3%
$81,520
31.7%
$5,140
2.0%
| Gross salary | $257,000 |
| Income Tax | -$81,520 |
| Medicare Levy (2%) | -$5,140 |
| Total deductions | -$86,660 |
| Net take-home (annual) | $170,340 |
Calculations use 2026-27 Australian resident tax brackets and the 2% Medicare Levy, applying the low-income threshold as a simple cutoff rather than modelling the exact phase-in band. Fortnightly results annualise your entered pay across 26 pay periods; actual PAYG withholding can differ because payroll uses the current ATO withholding tables and your tax-file details. Superannuation Guarantee is shown as an employer contribution on top of salary and is not subtracted from take-home pay. The optional HECS/HELP amount is an annualised estimate. This does not account for the Medicare Levy Surcharge, private health insurance rebates, or other offsets. For precise advice consult a registered tax agent or the ATO.
Permanent median
$257,000
$170,340 take-home
Contract median
$1,702/day
≈ $374,440 gross a year
At a median $1,702/day, contract work grosses about $374,440 a year over 220 billable days, 46% more than the $257,000 permanent median. That premium has to pay for what an employer would otherwise cover: paid holiday and sick days, pension contributions, and the gaps between contracts.
Contract and permanent benchmarks come from separate samples, so treat the gap as a guide rather than a like-for-like quote. See Head of Engineering contract rates and contractor take-home →
A Head of Engineering earning the median salary of A$257K in Australia takes home approximately $170,340 per year ($14,195 per month) after Income Tax and the Medicare Levy, using 2026-27 ATO resident rates.
On a median Head of Engineering salary of A$257K, the effective tax rate (Income Tax and Medicare Levy combined) is 33.7%, leaving $170,340 as take-home pay.
On a A$257K salary, a Head of Engineering pays approximately $81,520 in Income Tax per year under 2026-27 resident brackets (tax-free to $18,200, then 15%, 30%, 37%, and 45%).
On a A$257K salary, the Medicare Levy is approximately $5,140 per year at the standard 2% rate (above the low-income threshold).
No. The Superannuation Guarantee (12% for 2026-27) is an employer contribution paid on top of gross salary and is not deducted from the employee take-home figures on this page.
A senior Head of Engineering in Australia earns a median $324,000 a year and takes home approximately $205,850 ($17,154 per month) after Income Tax and the Medicare Levy, an effective rate of 36.5%.
A junior Head of Engineering in Australia earns a median $198,000 a year and takes home approximately $139,070 ($11,589 per month) after Income Tax and the Medicare Levy, an effective rate of 29.8%.
The biggest pay step is Senior to Lead / Principal: $90,000 more a year before tax, of which $47,700 reaches take-home. 47% of that raise goes to Income Tax and the Medicare Levy, against an average 36% on the Senior salary, because the extra pay is taxed at the top of your bands rather than spread across all of them.
At a median $1,702/day, contract work grosses about $374,440 a year over 220 billable days, 46% more than the $257,000 permanent median. That premium has to pay for what an employer would otherwise cover: paid holiday and sick days, pension contributions, and the gaps between contracts. Contract and permanent benchmarks come from separate samples, so treat the gap as a guide.
Head of Engineering Salary Benchmarks
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