What's the minimum wage in Australia? A guide to gross salary, package, and take-home pay
The national minimum wage is $26.44 per hour, $1,004.90 per week, and $52,255 per year (rounded) as set by Fair Work Ombudsman from 1 July 2026.
What's the minimum wage in Australia? Understanding gross, package, and take-home
If you're looking for a job or reviewing your pay, you've probably asked yourself: what's the minimum wage in Australia? The answer is straightforward from Fair Work Ombudsman: from 1 July 2026, the national minimum wage is $26.44 per hour and $1,004.90 per week for a 38-hour week. But what you actually receive in your bank account — your take-home pay — is different from that gross figure. Many people mix up gross salary, total package (including super), and net pay after tax and the Medicare levy. This guide clears up the confusion.
The national minimum wage benchmarks
The official figures are set by Fair Work Ombudsman. For a full-time employee working 38 hours per week, 52 weeks per year, the minimum wage equals $52,255 annually (rounded). These are gross amounts before any deductions. If you are paid fortnightly, your gross pay would be $2,009.80 (2 × $1,004.90). Remember: these are the legal minimums for award-free employees. Many industries have higher award rates.
From gross to take-home: tax and Medicare
Your take-home pay is what remains after the Australian Taxation Office (ATO) withholds income tax and the Medicare levy. For the 2026–27 tax year, resident tax rates are:
- Up to $18,200: nil
- $18,201 to $45,000: 15 cents per $1 over $18,200
- $45,001 to $135,000: $4,020 plus 30 cents per $1 over $45,000
- $135,001 to $190,000: $31,020 plus 37 cents per $1 over $135,000
- Over $190,000: $51,370 plus 45 cents per $1 over $190,000
You may also be eligible for the Low Income Tax Offset (LITO). For 2026–27, LITO is a maximum $700 at taxable income up to $37,500, then reduces by 5 cents per dollar until $45,000, then $325 minus 1.5 cents per dollar over $45,000 until $66,667. LITO can only reduce your tax to zero.
On top of income tax, the Medicare levy is 2% of your taxable income. However, if your income is below the single lower threshold of $28,011, you pay no Medicare levy. Between $28,011 and $35,013, you pay a shading rate of 10 cents per dollar over the lower threshold. Above $35,013, you pay the full 2%. These thresholds are the latest published single-person figures from the ATO.
Superannuation: not part of take-home
Your employer must pay superannuation at 12% of your ordinary earnings from 1 July 2026, up to a maximum contribution base of $270,830 per year. This super is paid on top of your gross salary — it is not deducted from your take-home pay. When a job advertisement says "$70,000 plus super", the super is extra. If it says "$70,000 including super", the super is part of that figure, so your gross salary for tax purposes is lower. Always check the wording.
Example: minimum wage take-home estimate
For a single person earning the minimum wage of $52,255 in 2026–27:
- Tax: $4,020 + 30% × ($52,255 - $45,000) = $4,020 + $2,176.50 = $6,196.50
- LITO: $325 - 1.5% × ($52,255 - $45,000) = $325 - $108.83 = $216.17 (capped at reducing tax to zero, so tax after LITO = $6,196.50 - $216.17 = $5,980.33)
- Medicare levy: full 2% = $1,045.10 (since income above $35,013)
- Total deductions: $5,980.33 + $1,045.10 = $7,025.43
- Net annual take-home: $52,255 - $7,025.43 = $45,229.57
- Weekly take-home: $45,229.57 / 52 ≈ $869.80
This is an estimate. It excludes HELP/HECS, Medicare levy surcharge, salary sacrifice, and payroll rounding. Use the Clearance tool for a personalised estimate.
Why gross, package, and take-home get mixed up
A common mistake is thinking your total package (salary plus super) is what you can spend. Super is locked away until retirement. Another is forgetting the Medicare levy — it's not optional for most full-time workers. And the LITO can make a big difference at lower incomes. Always look at your gross salary first, then subtract tax and Medicare to find your take-home. For more details, see our guides on Take-home pay and Tax and Medicare.
Final thoughts
Knowing what's the minimum wage in Australia is just the start. Your actual bank deposit depends on your tax situation, Medicare thresholds, and whether super is quoted separately. Use the Benchmarks page to compare your pay to averages, and remember that this guide provides estimates only — not an assessment from the ATO.
Questions
How much of the minimum wage do I actually take home after tax and Medicare?
For a full-time worker on the minimum wage ($52,255 annual), your take-home pay depends on tax brackets and the Low Income Tax Offset (LITO). In 2026–27, the first $18,200 is tax-free. On $52,255, tax is about $5,128 plus the Medicare levy of 2% ($1,045), minus LITO (up to $700). After deductions, your net annual pay is roughly $46,800 to $47,500, or about $900 to $915 per week. This is an estimate; your exact amount depends on your circumstances.
Does the minimum wage include superannuation?
No. The national minimum wage of $26.44 per hour is before super. From 1 July 2026, your employer must pay super at 12% on top of your ordinary earnings, up to a maximum contribution base of $270,830 per year. If a job ad says 'plus super', the super is extra and does not reduce your take-home pay. If it says 'including super', the super is part of the quoted amount.
What are the Medicare levy thresholds for single people?
For the 2026–27 tax year, the latest published single-person Medicare levy thresholds are $28,011 (lower) and $35,013 (upper). If your taxable income is below $28,011, you pay no Medicare levy. Between $28,011 and $35,013, you pay a shading rate of 10 cents per dollar over the lower threshold. Above $35,013, you pay the full 2% Medicare levy on your taxable income.