What is the minimum wage in Australia? A guide to comparing job offers by take-home pay
The national minimum wage is $26.44 per hour or $1,004.90 per week, but your actual take-home depends on tax and Medicare.
Comparing job offers by what reaches your account
When you compare job offers, the headline salary is only part of the story. What matters is the amount that reaches your bank account after income tax and the Medicare levy. This guide explains what is the minimum wage in Australia and how to use it as a benchmark for comparing offers.
What is the minimum wage in Australia
The national minimum wage is $26.44 an hour and $1,004.90 a week. This is set by Fair Work Ombudsman from 1 July 2026. The annual rounded figure is $52,255. This is the legal minimum for most employees.
How tax and Medicare affect your take-home
Your take-home is what remains after tax and the Medicare levy. For 2026–27, the tax rates are:
- Up to $18,200: nil
- $18,201 to $45,000: 15c per $1 over $18,200
- $45,001 to $135,000: $4,020 plus 30c per $1 over $45,000
- $135,001 to $190,000: $31,020 plus 37c per $1 over $135,000
- Over $190,000: $51,370 plus 45c per $1 over $190,000
The Low Income Tax Offset (LITO) reduces tax: maximum $700 at taxable income up to $37,500, then 5c off per $1 until $45,000, then $325 minus 1.5c per $1 over $45,000 until $66,667. It can only reduce tax to zero.
The Medicare levy is 2% of your taxable income. The latest published single-person Medicare thresholds are $28,011 and $35,013. Full-time salaries pay the full 2%. For a minimum wage earner, your Medicare levy is about $1,045 per year.
Super is not part of your take-home
Super is 12% from 1 July 2026. Job ads often say plus super. Super is not deducted from your take-home in that case. So when you compare offers, consider the super contribution as extra benefit.
How to compare offers using take-home
To compare two job offers, calculate each annual taxable income. Then subtract tax and Medicare. Use the Take-home pay tool for your exact numbers. Also consider the super contributions.
For example, a minimum wage earner would pay around $7,000 in tax and Medicare, leaving about $45,200 take-home per year. That is about $1,740 per fortnight. Use the Clearance tool for your exact situation.
Remember: this is an estimate only. Excludes HELP/HECS, the Medicare levy surcharge, salary sacrifice, and payroll tax-table rounding. Not an assessment.
Questions
What is the minimum wage in Australia?
The national minimum wage is $26.44 per hour and $1,004.90 per week, as set by Fair Work Ombudsman from 1 July 2026. This is before tax and before super.
How much tax and Medicare will I pay on the minimum wage?
For a full-time earner on the minimum wage (annual $52,255), you pay income tax using the 2026–27 tax rates: $4,020 plus 30c per $1 over $45,000, then subtract the Low Income Tax Offset. Medicare levy is 2% of your taxable income. The latest published single-person Medicare thresholds are $28,011 and $35,013. Full-time salaries pay the full 2%.
How can I compare two job offers using take-home pay?
Calculate each offer's annual taxable income, then subtract tax and Medicare using the tax brackets and LITO. Use the Clearance tool for your exact situation. Also consider super is not part of your take-home if the ad says plus super.