Compare job offers with after-tax salary: minimum wage australia

How to compare job offers using your take-home pay

When you receive a job offer, the advertised salary is often a gross figure. What matters is the amount that lands in your bank account after income tax and the Medicare levy. This guide uses the latest tax rates for 2026–27 to help you compare offers. We focus on the minimum wage australia as a benchmark.

Understanding the national minimum wage

The national minimum wage is $26.44 an hour and $1,004.90 a week, set by Fair Work. This is the floor for most employees. If you are offered a salary, compare it to this base. But remember, your take-home pay is less than the gross annual figure.

How tax and Medicare affect your take-home

The Australian Taxation Office applies a progressive tax scale. For 2026–27, the first $18,200 is tax-free. Then up to $45,000 you pay 15c per $1 over $18,200. Up to $135,000 you pay $4,020 plus 30c per $1 over $45,000. Up to $190,000 you pay $31,020 plus 37c per $1 over $135,000. Above that, 45c per $1 over $190,000. The Low Income Tax Offset can reduce tax by up to $700. Medicare levy is 2% of taxable income, but there are thresholds: $28,011 and $35,013 for single people. If your taxable income is between those, you pay 10c per $1 over the lower threshold until the upper threshold. Full-time salaries pay the full 2%.

Using the after-tax benchmarks

Our Take-home pay tool can estimate your after-tax amount. For the minimum wage, the annual gross is $52,255. After tax, your take-home is less. For example, a single person earning the minimum wage might pay around $6,000 in tax plus Medicare, leaving about $44,000 take-home. But check your own situation. The Clearance tool can help.

Comparing offers with super

Job ads often say plus super. Super is 12% from 1 July 2026, up to a maximum contribution base of $270,830. Super is not deducted from take-home if the ad says plus super. So compare total package including super. But your take-home is from the gross salary before super.

Medicare levy thresholds

The latest published single-person Medicare thresholds are $28,011 and $35,013. If your taxable income is below $28,011, you pay no Medicare levy. Between that and $35,013, you pay a reduced rate. Above $35,013, full 2%. This affects your take-home.

Using the guide to decide

When comparing two offers, calculate your after-tax amount for each. Use the Tax and Medicare page for more details. Remember, this is only a resident estimate. It excludes HELP/HECS, Medicare levy surcharge, salary sacrifice, and payroll table rounding. Not an assessment.