What the minimum wage increase 2026 means for your take-home pay

What the minimum wage increase 2026 means for your take-home pay

The national minimum wage increase 2026 took effect from 1 July 2026. Fair Work confirmed the new rate: $26.44 per hour or $1,004.90 per week for a 38-hour week. Award wages also rose by 4.75%, with the lowest award rate at least $26.44 per hour. This guide shows you how much of that wage reaches your bank account after income tax and the Medicare levy.

How much you take home after tax and Medicare

Using the 2026–27 tax rates from the Australian Taxation Office, a full-year minimum wage earner on $52,255 pays:

• No tax on the first $18,200
• 15c per dollar from $18,201 to $45,000 (that's $4,020)
• 30c per dollar from $45,001 to $52,255 (that's $2,176.50)
• Total tax before offsets: $6,196.50

The Low Income Tax Offset (LITO) reduces tax by up to $700. At $52,255 your LITO is $325 minus 1.5c per dollar over $45,000, which works out to $216.18. So your net tax is $5,980.32. The Medicare levy is 2% of taxable income: $1,045.10. Total deductions: $7,025.42. Take-home pay: about $45,229.58 per year, or $1,739.60 per fortnight. This is a resident estimate only and excludes HELP/HECS, the Medicare levy surcharge, salary sacrifice, or payroll rounding.

Medicare levy thresholds for singles

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 $28,011 and $35,013 you pay a shade of 10c per dollar over $28,011. Full-time minimum wage earners pay the full 2% because $52,255 is well above $35,013.

Super guarantee from 1 July 2026

From 1 July 2026 the super guarantee rate is 12% of your ordinary time earnings. On the minimum wage of $52,255, your employer must contribute $6,270.60 to super annually. This is on top of your wage, not deducted from your take-home pay unless your contract says 'salary sacrifice'. Job ads often show 'plus super' – that means the super is additional.

How the minimum wage compares to average earnings

The national minimum wage of $52,255 per year is well below the all-employees average weekly total earnings of $1,579.20 per week ($82,118 per year) and the full-time adult ordinary time earnings of $2,083.70 per week ($108,352 per year), according to ABS Average Weekly Earnings, May 2026. The minimum wage increase 2026 helps close the gap slightly, but most full-time workers earn more than double the minimum.

What about award wages?

Most employees are covered by an award. From 1 July 2026 minimum award wages increased by 4.75%, provided the lowest rate in any award is at least $26.44 per hour. Entry-level rates for the first six months must be at least $25.74 per hour. Use the Fair Work Pay and Conditions Tool to check your exact award rate.

Key takeaways

• The national minimum wage is $26.44 per hour or $1,004.90 per week.
• Take-home pay after tax and Medicare is about $45,230 per year for a full-time resident.
• Medicare levy thresholds for singles are $28,011 and $35,013.
• Super guarantee is 12% from 1 July 2026, paid on top of your wage.
• Award wages rose by 4.75% with a floor of $26.44 per hour.

For more details see our Minimum wage guide and Take-home pay calculator. Also check Tax and Medicare for the latest thresholds.