Understanding your take-home pay: minimum wage australia per hour and beyond
The national minimum wage is $26.44 per hour, $1,004.90 per week, or $52,255 per year before tax; your take-home will be lower after income tax and Medicare levy.
Gross salary, salary package, and take-home: what's the difference?
When you see a job ad quoting a salary, it is important to know what that figure actually means for your bank account. Many workers confuse the gross salary with the total package or the after-tax amount. This guide explains the distinctions, using the minimum wage australia per hour as a starting point.
The national minimum wage
Fair Work Ombudsman sets the national minimum wage. From 1 July 2026, it is $26.44 per hour, $1,004.90 per week, or $52,255 per year. This is the gross amount before any deductions. Employers often advertise "plus super", meaning super is on top.
What is a salary package?
A salary package includes your gross salary plus employer superannuation contributions. From 1 July 2026, the super guarantee rate is 12% of your ordinary time earnings, up to a maximum contribution base of $270,830. So if you earn the minimum wage, your total package is $52,255 + 12% super = about $58,525. But that super is not available as cash until you retire.
What is take-home pay?
Take-home pay is what lands in your bank account after income tax and the Medicare levy. It does not include super (unless you salary sacrifice, which is a separate topic). Using the tax rates for 2026-27:
- Tax-free threshold: $18,200
- Next $26,800 taxed at 15c per $1 (up to $45,000)
- Then $7,255 taxed at 30c per $1 (up to $52,255)
- Plus Low Income Tax Offset (LITO) of up to $700, which reduces tax.
For a minimum wage earner ($52,255), the tax before offsets is about $4,020 + 30% of ($52,255 - $45,000) = $4,020 + $2,176.50 = $6,196.50. Then LITO: at $52,255, LITO is $325 minus 1.5c per $1 over $45,000 = $325 - $108.83 = $216.17. So tax after LITO = $6,196.50 - $216.17 = $5,980.33. Medicare levy: 2% of $52,255 = $1,045.10. Total deductions = $7,025.43. Take-home = $52,255 - $7,025 = $45,230 per year, about $870 per week. (Note: This is an estimate; actual may vary due to rounding.)
Common mix-ups
- Thinking "package" is cash: Some ads say "total package $58,525" but that includes super. Your cash salary is $52,255.
- Ignoring Medicare levy: Many forget the 2% levy. For singles earning above $35,013, it applies fully.
- Assuming LITO covers all: LITO is limited and phases out. It cannot reduce tax below zero.
Using our tools
To see your exact take-home, use our Clearance tool or read more on Take-home pay. For the latest tax rates, see Tax and Medicare.
Questions
How much of the minimum wage australia per hour reaches my bank account?
For a full-time worker on the minimum wage ($52,255 annual, before tax), after income tax (including LITO) and 2% Medicare levy, the estimated take-home is about $45,230 per year, or roughly $870 per week. This is an estimate only and not a tax assessment.
What are the Medicare levy thresholds for singles?
The latest published single-person Medicare thresholds are $28,011 (lower) and $35,013 (upper). Below $28,011 you pay no levy. Between $28,011 and $35,013 you pay a shade rate of 10c per dollar over the lower threshold. Above $35,013 you pay full 2%.
Does the minimum wage include superannuation?
No. The national minimum wage of $26.44 per hour is before super. Employers must pay an additional 12% super on top from 1 July 2026. So your total package is higher, but super is not part of your take-home pay.