If you earn over $18,200 a year, you need to pay income tax. At the end of the financial year, the amount of tax you pay depends on how much you earn and any deductions you claim.
But during the year when your employer pays you, it’s likely they’ll tax you at a certain rate so you don’t have a huge tax bill come 1 July.
What you receive in your bank account is your after-tax pay – the amount you earn minus any taxes you pay, whereas your total pay is your gross pay.
What’s the difference between after-tax and gross pay?
Your after-tax pay is the income you earn minus any taxes you pay or deductions you can claim. This can also be referred to as ‘net pay’ or ‘take home pay’.
Your gross pay is the total amount you are paid by your employer before any taxes or deductions are taken out.
At Humanforce Thrive, we want to make managing your pay as simple as possible. That's why we show your daily after-tax pay on the app. Keep in mind these figures are estimates only and don’t represent your final take home pay.
We use your gross pay provided to us by your employer to estimate your daily after-tax pay.
We use an income tax calculator to subtract what you might pay in tax from your gross income. We subtract the medicare levy and medicare levy surcharge when calculating your estimated daily pay.
You can see and access our estimate of your daily after-tax pay on the app. You can also see your gross pay by tapping How we estimate this in the Track feature.