Sovereign

Tech

Software Engineer Salary · Melbourne vs Sydney

Net pay, tax drag, and purchasing power modeled for 2025 offers. Built for relocating teams, expats, and comp committees.

Net pay

Melbourne

$126,058

30.9% effective rate

Net pay

Sydney

$169,518

35.9% effective rate

Annual delta

Spread

-$43,460

Sydney advantage

City

Melbourne

Australia’s cultural capital with a diverse economy spanning tech, arts, and logistics.

Median professional income

$96,000

Role modeled

Software Engineer

Gross base

$182,500

Net after tax

$126,058

Cost-of-living index

96

Rent index

87

City

Sydney

The financial heart of Oceania. High compensation roles in finance and law are common, matching a premium coastal lifestyle.

Median professional income

$119,500

Role modeled

Software Engineer

Gross base

$264,500

Net after tax

$169,518

Cost-of-living index

52

Rent index

72

Purchasing power

Net income vs lifestyle drag

Melbourne

$10,505

Housing$3,151
Essentials$2,101
Discretionary$2,626
Savings$2,626

Sydney

$14,127

Housing$4,238
Essentials$2,825
Discretionary$3,532
Savings$3,532

Cost-of-living deep dive

Flip into the COL template for this exact pair. See rent burdens, discretionary drift, and PPP commentary.

Open COL page

Remote benchmark

Need a borderless baseline? Run the remote analyzer across our tier-one city basket.

Remote comparison

More combinations

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Frequently asked

Who wins for Software Engineer net pay: Melbourne or Sydney?+
Sydney keeps about $43,460 more after tax (35.9% effective rate) compared to Melbourne (30.9%).
How different are the cost-of-living profiles?+
Melbourne posts a cost-of-living index of 96 and rent index of 87. Sydney comes in at 52 / 72. The purchasing power gap tightens once you factor in rent and lifestyle drift.
What salary uplift offsets Melbourne's taxes?+
You would need roughly $62,919 in additional gross compensation to match the same take-home pay in Sydney.