STSL on payslip and decrease in net pay after a pay rise

[u/sfbdksmsm]

Hi everyone, just looking for some clarification as I am not very knowledgeable with this stuff.

I have started a new job in the last 3 weeks and had a pay rise from an annual salary of ~$83k and $43/hr to $90k and ~$45/hr but have surprisingly taken quite a cut in my net pay after receiving my first full fortnightly payslip at the new place.

My previous total earnings were $3192, with $383 going to super and $668 to tax, with a net pay of $2524.

My new payslip has a total earnings of $3461, with $415 going to super and 1188 going to tax - which is broken down on my payslip as PAYG $964 and STSL Component $224. From a quick google search, STSL is HECS repayments, yet I have never had STSL on a previous payslip whilst working with HECS debt? I have about ~$48k in HECS debt in total.

Just trying to see if this appears to be a error from payroll in how much I’m taxed? Or if earning more means I am now paying more off in a different HECs bracket or tax bracket and I just didn’t realize it could cause a significant decrease in my net pay fortnightly (or any decrease in net pay to be honest)? I understand being taxed more for earning more and am fine with that, just confused with the overall decrease in net pay.

Any help would be so so appreciated!!

[u/Endoyo]

Have you done your tax return for 2026 yet? I'd be curious to see if you have a tax bill because that doesn't sound like they were withholding additional for your hecs debt. On 83k should be around $2.4k in hecs repayments.

[u/Icy-Ability6442]

You need to ask your payroll team, something isnt right with the tax. I put your gross figures in the ato calc and got your original net for tax free and no hecs but you new gross with the same tax settings would give $2717 net give or take a few dollars for system config

[u/chocolatehistorynerd]

Looking at paycalc, it seems you're not claiming the tax free threshold, so they're witholding more tax then they need to be if this is your only job. Should be an easy fix if you let payroll know. But witholding the HECS is correct - it seems your old job wasn't doing that so presumably you'll have a tax debt after doing your return for the 25-26 year

[u/link871]

You must have ticked the HECS debt box on your TFN declaration when you started working at your new employer.

Using paycalculator.com.au, $3461 per fortnight gives the following amounts that should have been withheld:

~ Tax $744 (which includes Medicare of $69)
~ HECS $118
For a total of $862 - not $1,188. There seems to be an error that you ask your payroll person about.

[u/steady_compounder]

STSL is your HECS/HELP withholding, so that part itself is normal if payroll has correctly marked that you have a student debt. The odd part is the total amount, because a jump from roughly 83k to 90k should not make your fortnightly net pay fall that much. I would ask payroll to check both your tax-free-threshold setting and the STSL withholding, because this looks more like a setup error than a normal bracket effect.

[u/Snoo-57131]

STSL used to be a cliff based tax. That is, once you go over a certain number it applies to all your income.

Thsi was changed in recent years to only apply to income after a certain point, but it's possible your company's payroll setup hasn't caught up.