See the Budget tracker for announcements and effective dates.
Tax in Australia vs UK: what does resident pay look like?
Australian resident rates and the Medicare levy affect the result. This model assumes full-year residence, eligibility for Medicare and qualifying private hospital cover throughout the year.
The full Medicare levy appears with employee charges. Employer superannuation is separate from take-home pay, and working holiday maker rates are excluded.
The low-income tax offset phases out by AUD 66,667. Salaries below £35,022.00 are excluded at the exchange rate used here because low-income offsets and levy reductions are not modelled.
For the UK side, the employee lives in England, Wales or Northern Ireland for the full tax year. The single employee has no children, other income, pension contributions or student loans and pays annual National Insurance.
The Australian pay figure leaves out rent and other living costs, visa and moving costs, wealth taxes and treaties. Compare those separately before drawing a conclusion.
At £100,000 gross: Australia take-home is £2,371.09 higher than the UK before rent. UK take-home is £68,557.40 and Australia take-home is £70,928.49. Australia uses the 2026-27 tax year; the UK uses 2026-27. Review the Australia and UK sources.
| Gross salary | UK take-home | Australia take-home | Difference before rent |
|---|---|---|---|
| £50,000.00 | £39,519.60 | £38,979.84 | -£539.76 |
| £75,000.00 | £54,057.40 | £55,693.93 | £1,636.53 |
| £100,000.00 | £68,557.40 | £70,928.49 | £2,371.09 |
| £150,000.00 | £91,286.40 | £97,428.49 | £6,142.09 |
In the Australia working, displayed amounts are rounded to pence or cents. The engine calculates with more precision, so individually rounded lines may not add exactly.
How the Australian example works: £100,000 gross
UK baseline for Australia
- On the UK side £12,570.00 is covered by the personal allowance, leaving £87,430.00 taxable.
- Apply the UK basic rate of 20% to £37,700.00: £7,540.00.
- Apply the UK higher rate of 40% to £49,730.00: £19,892.00.
- Apply the UK additional rate of 45% to £0.00: £0.00.
- The UK income tax bill is £27,432.00. National Insurance adds £4,010.60, including £3,016.00 at the main rate and £994.60 at the upper rate.
- After these UK deductions, the employee keeps £68,557.40.
Australia calculation
- The Australian gross equivalent of £100,000.00 is A$190,367.41 at the dated exchange rate.
- Medicare levy (simplified full levy): A$3,807.35 on the Australian side.
- The assumed Australian deduction is A$0.00, so taxable pay is A$190,367.41.
- Resident income tax: A$18,200.00 at 0% gives A$0.00; A$26,800.00 at 15% gives A$4,020.00; A$90,000.00 at 30% gives A$27,000.00; A$55,000.00 at 37% gives A$20,350.00; A$367.41 at 45% gives A$165.33; before credits A$51,535.33, credits A$0.00; result A$51,535.33.
- Australian resident income tax comes to A$51,535.33 and employee charges come to A$3,807.35.
- That leaves A$135,024.73, equivalent to £70,928.49 at the same exchange rate.
Try an Australian comparison
Enter annual gross pay in pounds, starting at £35,022.00. This is the same converted gross amount rather than an Australian salary offer.
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See the calculation
UK working for Australia
Australia working
Sources for the UK and Australia salary figures
HM Treasury: Budget 2026 rates and allowances, UK 2026-27, checked 29 October 2026. ATO: Income Tax Rates Act, 2026-27, 2026-27, checked 29 October 2026. ATO: Medicare levy and surcharge, 2026-27, checked 29 October 2026. For Australia, the Cross rate from ECB euro reference rates (ECB reference rates dated 23 October 2026) uses a reference rate dated 23 October 2026, checked 29 October 2026.
For the Australia calculation, one AUD is 0.5253 GBP, rounded for this model.
Australian Taxation Office: low-income tax offset, 2026-27, checked 29 October 2026.
How is employee pay taxed?
The model deducts ordinary resident Income Tax and the full Medicare levy. It excludes working holiday maker rates, low-income adjustments and student loans. Employer superannuation sits outside take-home pay.
Tax period: 2026-27. Main city used: Sydney.
Which Australian income tax rates does this use?
The ordinary resident schedule has a tax-free band to AUD 18,200, then 15% to AUD 45,000 and 30% to AUD 135,000. The Australian Income Tax Rates Act 1986, Schedule 7 and ASIC Moneysmart confirm these 2026-27 resident rates (checked 25 October 2026).
Rates apply to slices of taxable income. The engine adds the full 2% Medicare levy and leaves out its reductions, exemptions and separate surcharge. Employer superannuation and student loans are outside the result.
Will my UK State Pension increase in Australia?
Australia is outside DWP's annual-increase coverage. A UK State Pension can remain payable without the yearly increases paid in covered countries. The UK pensions abroad guide explains payments and voluntary contribution checks.
What permission do I need to live and work here?
UK citizens need a visa to live and work (Department of Home Affairs visa finder). Permanent residency possible if the visa allows. Dual citizenship allowed.
Can British citizens use a working holiday route?
Home Affairs has specific arrangements for eligible UK passport holders. Check that route's conditions before accepting a job. The salary engine uses ordinary resident rates and does not calculate working holiday maker tax.
How much rent does the comparison assume?
Rent estimate in Sydney: A$3,615.68/month for a city-centre one-bedroom home; Numbeo: Sydney city-centre one-bedroom rent, checked 25 October 2026; method and exclusions.
Getting residence
Use a visa that permits your planned work or stay. The Department of Home Affairs handles work, study, permanent migration and partner or family routes. Check the visa conditions before accepting work.
FCDO, Living in Australia. Source date: . Checked .
Healthcare
Check Medicare eligibility with Services Australia and enrol if eligible. The UK reciprocal agreement covers some medically necessary care for eligible visitors, rather than every bill. Check private insurance for exclusions and any cover required by your visa.
FCDO, Living in Australia. Source date: . Checked .
Schools
School rules and charges depend on the state and visa. In New South Wales, many temporary residents pay public-school tuition unless exempt. Check the visa subclass with the Temporary Residents Program before assuming a state school is free.
NSW Department of Education, visa subclasses and enrolment conditions. Source date: . Checked .
Banking and money
A transaction account handles wages and daily bills. Compare account and withdrawal fees before opening one, then ask the bank what identity and residence evidence it accepts from a new arrival.
ASIC Moneysmart, transaction accounts and debit cards. Source date: . Checked .
Report physical currency totalling AUD 10,000 or more, including the foreign-currency equivalent, when carrying it into or out of Australia. International bank transfers follow different reporting arrangements.
AUSTRAC, moving money overseas. Source date: . Checked .
The currency is the Australian dollar (AUD).
European Central Bank, currency reference table. Source date: . Checked .
Cost of living
Consumer prices rose 3.8% in the year to December 2025. This measures changes in Australian prices, rather than a price comparison with the UK. Use a separate budget for your city and household.
Australian Bureau of Statistics, December 2025 CPI. Source date: . Checked .
Driving
Licensing is handled by states and territories. In New South Wales, permanent residents must transfer an overseas licence within 3 months. Temporary visa holders use a separate process. Check the testing exemption for the UK licence you hold.
Service NSW, transfer an overseas driver licence. Source date: . Checked .
UK pensions
The UK State Pension is frozen in Australia.Frozen State Pension guide.
DWP, State Pension annual increases country list. Source date: . Checked .
See the Moving abroad checklist for UK reporting and residence checks, school questions and bank account checks.