Minimum wage Australia 20 year old: Your take-home pay after tax and Medicare

Minimum wage Australia 20 year old: What you actually take home

If you're 20 and starting your career in Australia, you're likely wondering how much of your pay will actually reach your bank account. The answer depends on whether you're covered by an award, your tax bracket, and the Medicare levy. This guide breaks down the numbers for the 2026–27 financial year.

The national minimum wage for a 20-year-old

Fair Work sets the national minimum wage at $26.44 per hour or $1,004.90 per week for employees not covered by an award or registered agreement. That works out to an annual salary of $52,255 (38 hours per week, 52 weeks). However, many industries have awards that include junior pay rates for employees under 21. For a 20-year-old, those rates can be lower than the national minimum wage. Always check your award or use the Pay and Conditions Tool on the Fair Work website to confirm your correct minimum rate.

From gross to net: tax and Medicare

Once you know your gross pay, the next step is understanding what gets deducted. For the 2026–27 tax year, the Australian Tax Office applies these resident tax rates:

• $0 – $18,200: Nil
• $18,201 – $18,200: 15c per $1 over $18,200**
• $45,001 – $135,000: $4,020 plus 30c per $1 over $45,000**
• $135,001 – $190,000: $31,020 plus 37c per $1 over $135,000**
• $190,001 and over: $51,370 plus 45c per $1 over $190,000**

On a minimum wage salary of $52,255, your tax before offsets is $6,196.50. The Low Income Tax Offset (LITO) reduces this: at $52,255, you get $325 minus 1.5c per $1 over $45,000, which is $216.18. So your income tax after LITO is $5,980.32.

Then comes the Medicare levy. The latest published single-person thresholds are $28,011 (lower) and $35,013 (upper). If you earn above $35,013, you pay the full 2% levy. On $52,255, that's $1,045.10. Total deductions: $7,025.42.

Your take-home pay fortnightly

After tax and Medicare, your net annual income is about $45,229.58. Divide by 26 fortnights: roughly $1,739.60 per fortnight. That's the amount that lands in your bank account if you're paid fortnightly. Remember, this is an estimate – it excludes HELP/HECS repayments, the Medicare levy surcharge, salary sacrifice, and payroll rounding.

Superannuation is extra

Your employer must pay super on top of your ordinary time earnings. From 1 July 2026, the super guarantee rate is 12%. On $52,255, that's an additional $6,270.60 paid into your super fund. Super is not deducted from your take-home pay – it's a separate contribution.

What changes your fortnight: brackets, Medicare, and super

Your take-home pay can shift depending on:

• Tax brackets: If you earn more than $52,255, you move into higher marginal rates. The 30c bracket applies up to $135,000.
• Medicare levy: Full-time workers on minimum wage pay the full 2% because they exceed the upper threshold of $35,013.
• Super: While not deducted from your pay, super is part of your total remuneration. Some job ads quote a salary "plus super" – that means the base is before the 12% contribution.

If you're covered by an award

Many 20-year-olds work in retail, hospitality, or fast food. These industries have awards with junior rates. For example, a 20-year-old in the General Retail Industry Award might receive 90% of the adult rate. That could mean a lower hourly rate than $26.44. Use the Minimum wage guide to check your award, or see Take-home pay for calculators.

Key takeaways

• The national minimum wage for a 20-year-old not on an award is $26.44/hour.
• After tax and Medicare, a full-time worker takes home about $1,740 per fortnight.
• Super is extra – 12% on top of your base pay.
• Always verify your award rate – junior rates may apply.

For more details, explore our Tax and Medicare guide or the Clearance tool to estimate your own take-home pay.