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Money words: Gross and net income

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You may have heard the words ‘gross’ and ‘net’ thrown around in relation to money. These words are often used for a number of financial topics, such as income, profit and revenue. Let’s break down what they mean, with specific reference to salary or income.

What does gross mean?

Gross refers to the total amount before any money is taken out.

For example, the gross amount is the money someone may be paid before anything is deducted for tax or superannuation.

What does net mean?

On the other hand, net refers to the money that is leftover when deductions or costs are taken out. When we get paid, money is often taken out for a number of different things, like tax, super and fees. The money that remains after that may be referred to as net income.

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