Victoria Take-Home Pay Calculator 2025: Federal Income Tax + Medicare Levy

Melbourne as a national tech and education hub

Melbourne is Australia's largest tech hub by employer headcount (Atlassian's Sydney HQ vs Melbourne's broader ecosystem), with substantial presence from Atlassian, Carsales.com, REA Group, Seek, MYOB, Xero (Australian operations), plus major Australian operations of US tech firms. Melbourne also hosts the largest banking and insurance sector outside Sydney (NAB headquarters, ANZ headquarters, AMP), substantial healthcare (Royal Melbourne Hospital, Walter and Eliza Hall Institute, Peter MacCallum Cancer Centre), and Australia's largest higher-education concentration (University of Melbourne, Monash, RMIT, La Trobe).

For a $115,000 Melbourne tech professional, Victoria take-home is roughly:

• Federal income tax: ~$27,500
• Medicare Levy: ~$2,300
• Total deductions: ~$29,800
• Net take-home: ~$85,200

Employer SG (superannuation guarantee) of 11.5 percent (rising to 12 percent July 2025) is paid into super on top of salary. Salary sacrifice reduces taxable income.

Melbourne cost of living: rising fast

Melbourne median house prices reached approximately AUD $940,000 in 2025, up sharply from $720,000 in 2020. The increase has been driven by inter-state migration from Sydney and overseas migration. Median apartment around $610,000. Rents have similarly risen; median weekly rent for a 2-bedroom inner-Melbourne apartment exceeds AUD $580.

Melbourne is still meaningfully cheaper than Sydney for housing (roughly 65 to 75 percent of Sydney prices) but the gap has narrowed substantially in the 2020-2025 period. Day-to-day costs (groceries, fuel, services) are similar to Sydney.

Geelong and regional Victoria

Geelong (population ~280,000) is Australia's largest regional city after Newcastle, with substantial manufacturing, education (Deakin University), healthcare, and a growing professional services sector. Many Geelong residents commute to Melbourne (1 hour by train).

Ballarat, Bendigo, and the Mornington Peninsula have all seen substantial post-2020 migration from Melbourne, driven by housing affordability and lifestyle factors. Median home prices in these regional centers are roughly half of Melbourne's.

Victoria state-administered taxes

• Payroll tax: 4.85 percent on wages above $700,000/year per employer (lower threshold than NSW's $1.2M). Mental Health Levy adds 0.5 to 1 percent surcharge for larger employers. Employer-paid only.
• Stamp duty on property: 4.5 to 6.5 percent depending on price band. For a $940k home, stamp duty is approximately $52,000.
• Land tax: 0.2 to 2.55 percent on investment property above $50,000 threshold (much lower threshold than NSW). Includes new Vacant Residential Land Tax on properties left vacant for 6+ months in inner Melbourne.
• Land transfer duty surcharge: 8 percent additional for foreign buyers.

What this calculator does not include

Medicare Levy Surcharge (additional 1-1.5% on high earners without private health insurance). Low Income Tax Offset. HECS-HELP student loan repayments. Victorian stamp duty or land tax (not income tax). Salary packaging via FBT-exempt employer benefits. For precise Victoria returns, use ATO myTax or full-featured Australian tax software.

Victoria public service

Victorian Public Service is one of Australia's largest sub-national workforces, with approximately 320,000 people across health, education, police, and transport. The VPS classification structure (VPS1 through VPS7) shapes professional salaries, with VPS5 typically $110,000 to $135,000 and VPS6 typically $135,000 to $170,000. Major Victorian Government employers include the Department of Health, Department of Education and Training, Victoria Police, and VicRoads. Victorian public servants receive 12 percent employer superannuation and substantial leave entitlements.

Melbourne sports and culture economy

Melbourne hosts more major sporting events than any other Australian city: the Australian Open tennis, F1 Australian Grand Prix, AFL Grand Final, Spring Racing Carnival (Melbourne Cup), and Boxing Day Test cricket. The sports and events economy supports substantial employment in hospitality, broadcasting, and event operations. Melbourne is also the Australian capital of theatre, comedy festivals, and the live music scene, with venues like the Forum, Palais, and Rod Laver Arena anchoring a major cultural sector that contributes meaningfully to GDP and tourism revenue.