What's the minimum wage in Australia? How much reaches your bank account after tax and Medicare

Understanding the minimum wage in Australia

If you're asking yourself "whats the minimum wage in australia", the answer from Fair Work is clear: $26.44 per hour or $1,004.90 per week. That works out to $52,255 a year for a full-time worker on 38 hours a week, 52 weeks a year. This is the legal floor for most employees, but it's not what lands in your bank account. Your take-home pay is what remains after income tax and the Medicare levy are deducted.

How income tax affects your take-home pay

Australia uses a progressive tax system. For the 2026–27 tax year, the Australian Taxation Office shows these resident tax rates:

• 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

You may also be eligible for the Low Income Tax Offset (LITO). For 2026–27, the maximum LITO is $700 at taxable incomes up to $37,500. It then reduces by 5c per dollar until $45,000, where it becomes $325. Above $45,000, it reduces by 1.5c per dollar until it phases out at $66,667. LITO can only reduce your tax to zero — it cannot give you a refund.

Example: minimum wage earner

If you earn the minimum wage of $52,255, your tax before offsets is:

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

Now apply LITO. At $52,255, LITO = $325 – (($52,255 – $45,000) × 0.015) = $325 – $108.83 = $216.17. So your tax after LITO is $6,196.50 – $216.17 = $5,980.33.

The Medicare levy and thresholds

The Medicare levy is an additional 2% of your taxable income, used to fund Australia's public health system. For single people, the latest published single-person Medicare thresholds are $28,011 and $35,013. If your taxable income is below $28,011, you pay no levy. Between $28,011 and $35,013, the levy is phased in at 10c per dollar over the lower threshold. Above $35,013, you pay the full 2%. Since the minimum wage of $52,255 is well above $35,013, you pay the full 2%.

For the minimum wage example, the Medicare levy is $52,255 × 0.02 = $1,045.10.

Total deductions and take-home

Total deductions from your $52,255 salary:

• Income tax after LITO: $5,980.33
• Medicare levy: $1,045.10
• Total: $7,025.43

Your estimated annual take-home pay is $52,255 – $7,025.43 = $45,229.57. That's about $1,739.60 per fortnight or $869.80 per week. Remember, this is an estimate — it excludes HELP/HECS repayments, the Medicare levy surcharge, salary sacrifice, and payroll rounding. Use the Take-home pay guide for a more personalised calculation.

Superannuation: not part of your take-home

Your minimum wage is the base salary before super. From 1 July 2026, employers must contribute 12% superannuation on top of your salary, up to a maximum contribution base of $270,830. That means if you're paid $52,255, your employer adds $6,270.60 to your super fund. This money is not deducted from your pay — it's an extra benefit. Job ads often say "plus super", so your take-home is calculated from the base salary, not the super-inclusive amount. Learn more about how super works in our Super topic.

Other factors that affect your take-home

Your actual take-home may differ if you:

• Have a HELP/HECS debt (extra 1% to 10% withholding)
• Are subject to the Medicare levy surcharge (if you don't have appropriate private hospital cover and earn over $93,000)
• Salary package items like a car or laptop
• Work part-time or overtime

For a full breakdown of your specific situation, check the Clearance tool on After-tax salary. It uses the latest ATO rates and thresholds to estimate what reaches your bank account.

Summary

The national minimum wage is $26.44 per hour or $1,004.90 per week. After income tax and the Medicare levy, a full-time worker on this wage takes home roughly $45,230 a year. That's about $1,739 per fortnight. Always remember that super is paid on top and doesn't reduce your take-home. For more details, explore our Minimum wage and Tax and Medicare guides.