After-tax salary.au

NZ minimum wage vs Australian minimum wage: what you actually take home

The Australian national minimum wage is $26.44 per hour or $1,004.90 per week (gross). Take-home pay after tax and Medicare is approximately $45,200 per year for a full-time worker.

Fortnight that clears

$1,740

Keeps 87% of taxable pay

Super
  • Nil to $18,200
  • 15%
  • 30%
  • 37%
  • 45% over $190,000

The next dollar of taxable pay is taxed at 30%, before the Medicare levy.

  • Clears
  • Income tax
  • Medicare levy
Income tax
$5,980
Medicare levy
$1,045
Super
$6,271
Week that clears
$870
Hour, 38h week
$22.89

Low income offset reduces tax by $216.

Super of $6,271 is on top of this salary. It is not taken out of the fortnight.

  • This salary$1,740
  • Minimum wage$1,740
  • Full-time ordinary$3,198

National minimum wage, $1,005 a week times 52, to the nearest dollar.

Gross pay vs take-home pay

When you see a job advertisement quoting a salary, it's almost always the gross figure – the amount before tax, Medicare levy, and other deductions. What lands in your bank account each pay cycle is the take-home pay. This guide clears up the mix-up between gross salary, total package (which includes super), and actual take-home, using the Australian national minimum wage as the benchmark.

The national minimum wage

From 1 July 2026, the national minimum wage is $26.44 per hour or $1,004.90 per week for a 38-hour week, as set by the Fair Work Commission . This rate applies to employees not covered by a modern award or enterprise agreement. Most workers are covered by an award, which may pay more. The Fair Work Ombudsman confirms that minimum award wages increased by 4.75% from 1 July 2026, with the lowest ongoing rate at least $1,004.90 per week .

If you've been searching for "nz minimum wage" to compare with Australian rates, here's what you need to know: the Australian minimum wage is a gross figure. Your take-home will be lower after tax and the Medicare levy.

Tax and Medicare

For the 2026–27 tax year, the Australian Tax Office applies these resident tax rates:

  • $0 – $18,200: Nil
  • $18,201 – $45,000: 15c for each $1 over $18,200
  • $45,001 – $135,000: $4,020 plus 30c for each $1 over $45,000

A full‑time minimum wage earner on $52,255 per year falls into the second bracket. The estimated tax is about $5,980 after the Low Income Tax Offset (LITO). The Medicare levy is a flat 2% of taxable income, but only if you earn above the single threshold of $35,013. Since $52,255 is above that, you pay the full 2% – that's $1,045. The lower Medicare threshold is $28,011; below that you pay no levy. Between $28,011 and $35,013 a shading rate applies.

Result: total deductions of roughly $7,025, leaving take-home pay of about $45,230 per year – or $870 per week. Use our Take-home pay calculator for your exact situation.

Superannuation

From 1 July 2026, the Super Guarantee rate is 12%. This is paid by your employer on top of your gross salary – it is not deducted from your take-home pay. So if a job ad says "$26.44 per hour plus super", your total employment cost is $29.61 per hour, but your take-home is still based on $26.44. Super is not part of your cash in hand. See our Super guide for more.

NZ minimum wage comparison

New Zealand sets its own minimum wage, which is reviewed annually by the New Zealand government. As of 2026, the Australian national minimum wage is $26.44 per hour. The NZ rate is different and we do not have current NZ figures in this guide. If you are comparing job offers across the Tasman, remember to factor in different tax systems, cost of living, and currency exchange. For Australian purposes, the figures above are the ones to use.

How to calculate your take-home

The simplest way to estimate your take-home is to start with your gross annual salary, subtract estimated tax (using the ATO rates and LITO), then subtract the Medicare levy (2% if above $35,013). For a minimum wage earner, that gives roughly $45,200. For higher salaries, the tax brackets change and LITO phases out. Use our Clearance tool for a precise calculation.

Remember: your take-home is what you can spend. Don't confuse it with a total remuneration package that includes super. And if you're comparing with New Zealand, always check the official NZ minimum wage – it's not the same as Australia's.

Key takeaways

  • Gross minimum wage: $26.44/hr, $1,004.90/wk, $52,255/yr
  • Take-home (approx): $45,230/yr, $870/wk
  • Super: 12% extra from employer, not from your pay
  • Medicare levy: 2% if you earn over $35,013 (single)
  • NZ minimum wage: varies; not covered here

For more detail, visit our Minimum wage page or the Tax and Medicare section.

Questions

What is the Australian national minimum wage in 2026–27?

From 1 July 2026, the national minimum wage is $26.44 per hour or $1,004.90 per week for a 38-hour week. This is the minimum gross pay for employees not covered by an award or agreement. Source: Fair Work Ombudsman and Fair Work Commission.

How much do I take home after tax and Medicare on minimum wage?

For a full-time worker earning the minimum wage of $52,255 per year, estimated annual tax is about $5,980 after the Low Income Tax Offset, plus Medicare levy of $1,045. That leaves take-home pay of roughly $45,230 per year, or about $870 per week. This is an estimate only and excludes HELP/HECS, salary sacrifice, and the Medicare levy surcharge.

Is the NZ minimum wage higher than Australia's?

New Zealand sets its own minimum wage, which is reviewed annually and differs from Australia's. As of 2026, the Australian national minimum wage is $26.44 per hour. The NZ minimum wage is set by the New Zealand government and varies; we do not have current NZ figures in this guide. Always check official NZ sources for their rates.