Minimum wage casual: Your take-home pay after tax and Medicare

What is the minimum wage casual rate?

If you are a casual employee not covered by an award or enterprise agreement, the national minimum wage from 1 July 2026 is $26.44 per hour for adults. Because casuals do not receive paid leave, the Fair Work Ombudsman requires a 25% casual loading, bringing the minimum casual rate to $33.05 per hour. This is the legal floor – you cannot be paid less, even if you agree.

Most casual employees are covered by a modern award, which may set a higher rate or a different loading. Use the Fair Work Pay Calculator to check your specific award. The $33.05 figure applies only to award-free employees, but it serves as a useful benchmark for understanding the minimum wage casual landscape.

How much take-home pay can you expect?

Let’s assume you work 38 hours per week, every week of the year, at the casual minimum rate. Your gross annual salary would be:

$33.05 × 38 hours × 52 weeks = $65,306.80

Using the 2026–27 tax rates for Australian residents, your income tax is calculated as:

• Nil on the first $18,200
• 15¢ per $1 from $18,201 to $45,000 = $4,020
• 30¢ per $1 from $45,001 to $65,306.80 = $6,092.04
• Gross tax = $10,112.04
• Less Low Income Tax Offset (LITO) of $20.40 (reduced from $325 due to income above $45,000)
• Net tax = $10,091.64

The Medicare levy is 2% of your taxable income because you earn above the single upper threshold of $35,013. That adds $1,306.14.

Total deductions: $10,091.64 + $1,306.14 = $11,397.78

Your annual take-home pay: $65,306.80 – $11,397.78 = $53,909.02

That works out to about $1,036.71 per week or $2,073.42 per fortnight. Remember, this is an estimate – it excludes HELP/HECS repayments, the Medicare levy surcharge, and any salary packaging. Use our Take-home pay guide for a personalised calculation.

Comparing casual minimum wage to national minimum and full-time ordinary time

The national minimum wage (for non-casual, award-free employees) is $26.44 per hour, or $1,004.90 per week. That gives an annual salary of $52,255 before tax. After tax and Medicare, a full-time employee on that rate would take home roughly $43,700 (depending on LITO).

The casual minimum wage of $33.05 per hour is 25% higher than the base rate, reflecting the loading that compensates for lack of paid leave. However, casual workers do not accrue annual leave, sick leave, or public holiday pay, so the higher hourly rate is not pure profit – it covers those forgone entitlements.

By contrast, the average full-time adult ordinary time earnings (from the ABS) are $2,083.70 per week, or $108,352 per year. That is nearly double the casual minimum wage annual equivalent. The gap illustrates how far the minimum wage sits below the typical full-time salary.

If you are comparing job offers, always check whether the rate is “plus super” (super is on top) or “including super”. For casual roles, the advertised rate is usually the base plus loading, and super is additional. See our Super page for details on the 12% super guarantee from 1 July 2026.

Medicare levy and tax considerations

The Medicare levy is a flat 2% of your taxable income once you earn above the single upper threshold of $35,013. The Australian Taxation Office publishes the latest thresholds: $28,011 (lower) and $35,013 (upper). If your income falls between these, you pay a reduced rate (10¢ per $1 over the lower threshold). At the casual minimum wage full-time equivalent of $65,306, you are well above the upper threshold, so the full 2% applies.

You may also be liable for the Medicare levy surcharge if you do not have appropriate private hospital cover and your income exceeds $93,000 (single). The casual minimum wage is below that threshold, so the surcharge does not apply in this example.

Tax offsets like LITO can reduce your tax bill, but they cannot reduce it below zero. For a full breakdown of how tax brackets and offsets affect your pay, visit our Tax and Medicare page.