Overtime calculator (time and a half and double time) 2026-27
This overtime calculator works out pay at time and a half (1.5 times your base rate) and double time (2 times). It then applies the ATO's 2026-27 Schedule 1 withholding. At $34 an hour, 4 hours at time and a half plus 3 at double time adds $408 before tax.
The link carries the numbers you entered, so anyone who opens it sees the same result.
Overtime pay before tax
$408
Breakdown
| Time and a half at $51 an hour | $204 |
|---|---|
| Double time at $68 an hour | $204 |
| Overtime pay before tax | $408 |
| Ordinary pay | $1,292 |
| Total pay for the week | $1,700 |
- Total pay for the week
- $1,700
- Tax withheld, ordinary week
- $232
- Tax withheld, week with overtime
- $363
- Overtime after withholding
- $277
Overtime is taxed at your normal rates
Australia has no separate overtime tax. Overtime is ordinary assessable income and is taxed at your marginal rate, the same as the rest of your pay.
At $34.00 an hour for 38 hours a week, ordinary pay is $67,184 a year, and tax and Medicare levy on that are $12,018.88 for 2026-27. Each extra dollar falls in the 30% bracket and attracts the 2% Medicare levy, so the year-end cost of the $408 in overtime is $130.56. Payroll withheld $131 on it, so withholding and final tax line up to within 44 cents.
Lower earners can pay a higher rate on overtime than their bracket suggests, because the low income tax offset shrinks as income rises. The same $408 costs a different amount lower down the scale.
- On a $55,000 income33.5 cents in the dollar: 30% tax, 1.5% of lost offset and the 2% Medicare levy
- $136.68
- On a $40,000 income22 cents in the dollar
- $89.76
Overtime only feels heavily taxed because you're comparing the whole week's pay with an ordinary week. The extra $408 lost $131 to withholding, while the first $1,292 lost $232. It's taxed at your highest marginal rate because it's the top slice of income.
Big overtime weeks and withholding
Schedule 1 withholding treats every pay as if you earned that amount every week, so a large overtime week is withheld as if it were your normal income. Take the same worker in a heavy week: 12 hours at time and a half and 12 hours at double time.
| Week | Gross pay | Annual income Schedule 1 assumes | Tax withheld | Withheld on overtime | Actual tax on overtime |
|---|---|---|---|---|---|
| Ordinary week | $1,292 | $67,184 | $232 | n/a | n/a |
| 4 + 3 overtime hours | $1,700 | $88,400 | $363 | $131 | $130.56 |
| 12 + 12 overtime hours | $2,720 | $141,440 | $698 | $466 | $456.96 |
This worker's real income is nowhere near $135,000, yet the gap in the heavy week is only $9.04, because just $124 of the week sits above the 39-cent line. Withholding is an estimate either way, and the difference is settled in your tax return.
$2,596
39 cents in the dollar
Below the heavy week
Schedule 1 starts withholding at this rate. It lines up with the $135,000 bracket.
$2,720
The heavy week
$3,653
47 cents in the dollar
Above the heavy week
The weekly rate becomes this, and the gap widens in a very large week that crosses it.
What a HELP debt does to these weeks
A HELP debt changes the picture more. Schedule 8 adds a HELP component once weekly earnings reach $1,337 with the tax-free threshold claimed. The ordinary $1,292 week has none, but the $1,700 week has $55 withheld for HELP and the $2,720 week has $212.
Yet $67,184 plus $408 of overtime is below the $69,528 repayment threshold for 2026-27. If overtime weeks are rare, that HELP withholding comes back as a credit when you lodge.
Mid-year, the YTD income calculator projects your full-year income and likely refund from the figures on your latest payslip.
Super on overtime
Payday Super made "qualifying earnings" the base for the 12% super guarantee from 1 July 2026, in place of ordinary time earnings (ATO super guarantee rates and thresholds (opens in a new tab)). Overtime is still excluded.
The ATO's qualifying earnings list (opens in a new tab) leaves out overtime payments, provided your ordinary hours of work are clearly identified. If overtime can't be told apart, all hours actually worked count.
In the default example, super on the ordinary $1,292 is $155.04. If the $408 of overtime also counted, it would add $48.96.
The rule until 30 June 2026
Under the ordinary time earnings rules that applied until then, overtime payments didn't attract the super guarantee. Super was generally paid on earnings for ordinary hours.
What the overtime figures leave out
The calculator works out one pay period at a time. It doesn't include:
- Meal allowances or other allowances paid with overtime. Some are taxed differently.
- Award rules that change the multiplier by time of day or after a set number of hours.
- HELP repayments, which add to withholding once weekly pay reaches the Schedule 8 threshold.
- Penalty rates for weekend or night work that isn't overtime.
- Bonus tax calculatorA one-off payment for extra effort is usually a bonus, and this handles it.
- Pay rise calculatorIf regular overtime is part of a new role, this compares the annual take-home pay of the two positions.
Overtime questions: time and a half, overtime pay, working it out and tax
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Last reviewed
How do you work out time and a half?
Multiply your base hourly rate by 1.5. At $34.00 an hour, time and a half is $51.00, so 4 hours pay $204.00. Use the base rate, not a rate that already includes a penalty or allowance, unless your award says otherwise. Salaried staff on an annualised salary may have overtime built into their pay instead.
How much is overtime pay?
It's your base rate multiplied by the overtime multiplier for each hour. At $34.00 an hour, 4 hours at time and a half plus 3 hours at double time is $408.00 before tax. Some awards let you take time off in lieu (TOIL) instead of payment, usually by written agreement.
How do I calculate overtime?
List the overtime hours at each rate from your timesheet. Multiply each group by your base rate and its multiplier, then add them. For 4 hours at 1.5 and 3 hours at 2 on $34.00, that's $204.00 plus $204.00, or $408.00. Under the National Employment Standards, an employer can only ask for reasonable additional hours.
Are you taxed on overtime?
Yes. Overtime is taxed at your marginal rate like the rest of your income, with no special rate. A worker on $67,184 a year pays 30% tax plus the 2% Medicare levy on overtime, so $408 of overtime costs $130.56 at tax time. Payroll withheld $131 on it.
Estimates only, based on published rates for 2026-27. General information, not tax or financial advice.
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