Question 1

Is it worth taking a pay cut for a better work life balance?

Accepted Answer

It depends on your specific numbers. A pay cut often looks bigger than it really is — lower income means less tax, possible childcare savings if you work fewer days, reduced work expenses like commuting and lunches, and potentially more Family Tax Benefit. This calculator works out the real net difference after all these factors.

Question 2

How do I compare two job salaries in Australia?

Accepted Answer

Use this free job comparison calculator. Enter both salaries and hours, your household details, childcare costs and work expenses. The calculator applies 2026-27 Australian tax rates including LITO and Medicare levy, then shows your real take-home pay for each job and the net difference per week, fortnight, month or year.

Question 3

Does changing jobs affect Family Tax Benefit?

Accepted Answer

Yes. If a job change reduces your family income, you may become eligible for Family Tax Benefit Part A or Part B, or receive a higher payment. This calculator estimates the FTB impact of both jobs based on your family income.

Question 4

What is the effective hourly rate and why does it matter?

Accepted Answer

The effective hourly rate is what each hour of work actually adds to your household after tax. A high-stress job paying $140,000 for 55 hours per week may have a lower effective hourly rate than a $95,000 job with 40-hour weeks. This calculator shows the effective hourly rate for both jobs so you can compare what your time is really worth.

Question 5

How much does commuting and work expenses cost per year?

Accepted Answer

Work expenses including commuting, work clothes and lunches can easily add up to $5,000-$15,000 per year in a high-paying office job. Moving to a lower-paying role with work from home can significantly reduce these costs, partially offsetting the salary reduction.

Question 6

Does this job comparison calculator work for US families?

Accepted Answer

Yes. Switch to United States at the top and select your state. The calculator applies 2026 federal and state income tax rates, Social Security, Medicare, and the Child Tax Credit for both job scenarios.