Calculate Your Fortnightly Pay

Fortnightly pay is the most common pay cycle in Australia, used by the majority of employers across both the public and private sectors. It strikes a practical balance: employees receive pay frequently enough to manage bills and budgeting, while employers keep payroll administration costs reasonable compared to processing weekly runs.

Your employer withholds tax from each fortnightly pay using the ATO's PAYG (Pay As You Go) withholding schedules. These schedules estimate your annual tax liability and spread it evenly across 26 pay periods. The amount withheld each fortnight is based on the assumption that you earn the same amount every fortnight for the full financial year. If your income varies throughout the year, the total tax withheld may not perfectly match your actual tax liability — which is why many Australians receive a tax refund (or occasionally owe extra) when they lodge their tax return.

The tax-free threshold of $18,200 per year means roughly the first $700 of your fortnightly pay is effectively tax-free. If you've claimed the tax-free threshold with your employer, this is already factored into your PAYG withholding — you'll notice less tax deducted compared to someone who hasn't claimed it (for example, on a second job).

Salary sacrifice arrangements can also reduce your fortnightly tax. By directing a portion of your pre-tax salary into super or other approved benefits, you lower your taxable income for each pay period, meaning less PAYG tax is withheld and more of your package works for you.