What is the current minimum wage in Australia? Your take-home pay explained

What is the current minimum wage in Australia?

If you are wondering what is the current minimum wage in Australia, it is set by the Fair Work Ombudsman at $26.44 per hour and $1,004.90 per week (based on a 38-hour week). This applies from 1 July 2026. The annualised figure is $52,255 (rounded). This is the legal floor for most employees, but your actual take-home pay depends on how tax brackets, the Medicare levy, and superannuation interact with your earnings.

From weekly wage to annual salary

To work out your annual salary from the minimum wage, multiply the weekly rate by 52 weeks: $1,004.90 × 52 = $52,254.80, rounded to $52,255. This is your taxable income before any deductions or offsets.

How tax brackets affect your pay

Australia uses a progressive tax system. For the 2026–27 tax year, the resident tax rates are:

• Up to $18,200: nil
• $18,201 to $45,000: 15c for each $1 over $18,200
• $45,001 to $135,000: $4,020 plus 30c for each $1 over $45,000
• $135,001 to $190,000: $31,020 plus 37c for each $1 over $135,000
• Over $190,000: $51,370 plus 45c for each $1 over $190,000

For a taxable income of $52,255, your tax is calculated as:

• First $18,200: $0
• Next $26,800 ($18,201 to $45,000): $26,800 × 0.15 = $4,020
• Remaining $7,255 ($45,001 to $52,255): $7,255 × 0.30 = $2,176.50
• Total tax before offsets: $6,196.50

You may also be eligible for the Low Income Tax Offset (LITO). The maximum LITO is $700 for incomes up to $37,500, then it reduces by 5c per $1 until $45,000, then by 1.5c per $1 over $45,000 until $66,667. At $52,255, your LITO is $325 minus 1.5c per $1 over $45,000: $7,255 × 0.015 = $108.825, so LITO = $325 – $108.825 = $216.175 (rounded to $216). This reduces your tax to $6,196.50 – $216 = $5,980.50.

Medicare levy

The Medicare levy is 2% of your taxable income, used to fund Australia’s public health system. The latest published single-person Medicare thresholds are $28,011 and $35,013. If your income is below $28,011, you pay no levy. Between $28,011 and $35,013, you pay a shaded rate of 10c per $1 over the lower threshold. Because the minimum wage annual salary of $52,255 is above $35,013, you pay the full 2%: $52,255 × 0.02 = $1,045.10.

Superannuation

Super is not deducted from your take-home pay. From 1 July 2026, the super guarantee rate is 12% of your ordinary time earnings, up to a maximum contribution base of $270,830. Employers pay this on top of your salary. So if your job ad says “$26.44 per hour plus super”, your take-home pay is based on the $26.44 rate, and super is additional. For the minimum wage, your employer contributes an extra $3.17 per hour (12% of $26.44) to your super fund.

Fortnightly take-home estimate

To estimate your fortnightly take-home pay:

• Annual salary: $52,255
• Less income tax (after LITO): $5,980.50
• Less Medicare levy: $1,045.10
• Net annual pay: $45,229.40
• Divide by 26 fortnights: $1,739.59 per fortnight

This is an estimate only. It excludes HELP/HECS repayments, the Medicare levy surcharge, salary sacrifice arrangements, and payroll tax-table rounding. It is not a tax assessment.

What changes your fortnight?

Your fortnightly take-home can vary due to:

• Tax brackets: If you earn more, you move into higher marginal rates. The minimum wage sits in the 30c bracket after the first $45,000.
• Medicare levy: Full-time earners pay the full 2%, but low-income earners below $28,011 pay nothing.
• Super: While not deducted from your pay, super contributions (if salary sacrificed) would reduce your taxable income and therefore your take-home.
• LITO: This offset reduces your tax, but it phases out as income rises.

For a deeper look at how these factors interact, see our Take-home pay guide and the Tax and Medicare page.

Conclusion

Knowing what is the current minimum wage in Australia is just the first step. Your actual bank deposit each fortnight depends on tax brackets, the Medicare levy, and whether super is included in your salary package. Use the figures above as a starting point, and always check your payslip for accuracy.