Is $40,000.00 a Good Salary?
Find out where a $40,000.00 salary ranks in Australia, what you take home after tax, and how far it goes in different cities.
Last verified: 5 May 2026The Verdict
Below averageA $40,000.00 salary puts you in the 15th percentile of Australian full-time workers. You earn more than approximately 15% of full-time employees. After tax, you take home $35,712.00 per year ($1,373.54 per fortnight).
After-Tax Take Home on $40,000.00
Annual
$35,712.00
Monthly
$2,976.00
Fortnightly
$1,373.54
Weekly
$686.77
Effective tax rate: 10.7% (includes income tax + Medicare levy, 2025-26 rates)
Where You Rank Among Australian Workers
Based on ABS Employee Earnings data for full-time adult workers. The median full-time salary in Australia is approximately $78,000.
How Good Is $40,000.00 For Your Age?
At 25, this is typical for entry-level or part-time roles.
At 35+, this is below the full-time median. Upskilling, changing industries, or negotiating a raise could help.
How Far Does $40,000.00 Go in Each City?
Sydney: Sydney is most expensive. A 2-bed apartment averages ~$3,200/month in rent (108% of your take-home), making it very stretched.
Melbourne: Melbourne is second most expensive. A 2-bed apartment averages ~$2,400/month in rent (81% of your take-home), making it very stretched.
Brisbane: Brisbane is mid-range. A 2-bed apartment averages ~$2,500/month in rent (84% of your take-home), making it very stretched.
Perth: Perth is mid-range. A 2-bed apartment averages ~$2,600/month in rent (87% of your take-home), making it very stretched.
Adelaide: Adelaide is more affordable. A 2-bed apartment averages ~$2,000/month in rent (67% of your take-home), making it very stretched.
Hobart: Hobart is affordable. A 2-bed apartment averages ~$1,900/month in rent (64% of your take-home), making it very stretched.
Salary Comparison
| Salary | After Tax | Percentile | Verdict |
|---|---|---|---|
| $30,000.00 | $27,512.00 | 5th | Well below average |
| $35,000.00 | $31,612.00 | 10th | Well below average |
| $40,000.00 ← You | $35,712.00 | 15th | Below average |
| $45,000.00 | $39,812.00 | 20th | Below average |
| $50,000.00 | $43,212.00 | 25th | Below average |
| $55,000.00 | $46,612.00 | 30th | Below average |
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Run Your Full Money Check →Frequently Asked Questions
Is $40,000.00 a good salary in Sydney?
$40,000.00 puts you in the 15th percentile nationally. In Sydney, Australia's most expensive city, this salary can be challenging due to high rent and living costs. After tax, you take home $35,712.00 per year ($2,976.00/month).
Is $40,000.00 enough to live on in Australia?
$40,000.00 before tax gives you $35,712.00 after tax ($2,976.00/month). This is tight for a single person. You may need to share housing or live in a more affordable area.
What percentile is a $40,000.00 salary in Australia?
A $40,000.00 salary puts you in approximately the 15th percentile of Australian full-time workers. This means you earn more than about 15% of full-time workers. The verdict: Below average.
How much is $40,000.00 after tax in Australia?
On a $40,000.00 gross salary, your take home pay is approximately $35,712.00 per year ($1,373.54 per fortnight) after income tax and Medicare levy at 2025-26 rates. Your effective tax rate is 10.7%.
Sourced from
3 primary sources- ATO-Tax-Rates-2026ATO GuidanceResident tax rates 2025-26 (Stage 3 in effect)
0–$18,200 nil; $18,201–$45,000 16c; $45,001–$135,000 30c; $135,001–$190,000 37c; $190,001+ 45c. Plus 2% Medicare levy.
- ASFA-Retirement-StandardASFA Retirement StandardASFA Retirement Standard — comfortable & modest budgets
Comfortable retirement target: ~$595k (single) / ~$690k (couple) lump sum at 67, generating ~$53k/$74k annual income alongside the Age Pension.
- Services-Australia-Age-PensionServices AustraliaAge Pension — assets and income tests
Means-tested. Lower of income test or assets test applies. Pension age is 67. Family home generally exempt from assets test; super in accumulation phase exempt below age pension age.
General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.
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