What $40 per hour means as an annual salary
If you earn $40 per hour on a standard 38-hour week, your annual salary before tax is about $79,040. That figure comes from multiplying $40 by 38 hours and then by 52 weeks. It is a straightforward calculation, but how it stacks up against official benchmarks depends on where you work and what award or agreement covers you.
The national full-time adult ordinary-time average, as measured by the ABS Average Weekly Earnings for May 2026, is $2,083.70 a week, or about $108,352 a year. That is the line this site uses. At $79,040, a $40 per hour salary sits about $29,000 below that average. It also falls below the full-time median of $90,532 (ABS Employee Earnings, August 2025), though it is above the all-employees median of $74,100. The national minimum wage from 1 July 2026 is $26.44 an hour, or $52,255 a year on 38 hours, so $40 per hour is comfortably above that floor.
How state averages shift the picture
State full-time averages vary significantly, and your location can move your pay relative to the national line. The ABS Average Weekly Earnings for May 2026 gives these state figures:
- New South Wales: about $109,658
- Victoria: about $106,137
- Queensland: about $106,064
- South Australia: about $102,450
- Western Australia: about $115,825
- Tasmania: about $96,008
- Northern Territory: about $103,173
- Australian Capital Territory: about $119,090
At $79,040, a $40 per hour salary is below every state average. The gap is smallest in Tasmania, where the average is $96,008, and largest in the ACT, where the average is $119,090. If you work in a lower-cost region, the difference may feel less acute, but the national line still sits well above $40 per hour. For a more detailed breakdown of how your pay compares by state, see our States and territories page.
The role of awards and enterprise agreements
Awards set minimum pay rates for many industries, and they can push a $40 per hour rate either above or below the required minimum. The national minimum wage is $26.44, so $40 is well above that. But some awards have higher rates for skilled classifications. For example, the Building and Construction General On-site Award 2020 includes levels that exceed $40 per hour for certain trades. Similarly, the Mining Industry Award 2020 has rates above $40 for some roles. If your award rate is below $40, your employer may still pay more through an enterprise agreement or individual contract.
Conversely, if you are in an industry where the award rate is above $40, then $40 per hour would be below the minimum for that classification. Always check the relevant award or agreement. The Fair Work Ombudsman’s Pay and Conditions Tool can help you confirm the correct rate. For a broader view of how different occupations compare, see our Job medians page.
Tax and take-home pay
For the 2026–27 income year, the resident tax rates are: nil up to $18,200; 15% from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; and 45% above that. The Medicare levy adds 2% before any reductions. At $79,040, you fall in the 30% bracket, so your marginal tax rate is 32% including Medicare. Your total tax and Medicare levy would be roughly $16,800, leaving about $62,240 take-home pay. That is an estimate; your actual tax may vary with deductions or offsets.
How the figures are set
The national average used on this site comes from the ABS Average Weekly Earnings survey, which is published twice a year for May and November. The full-time adult ordinary-time earnings figure is the key benchmark. Medians come from the ABS Employee Earnings and Hours survey, released annually. The minimum wage is set by Fair Work after the annual wage review. For more detail on how these numbers are compiled, visit our How the figures are set page.
Putting it all together
A $40 per hour annual salary of about $79,040 is a solid wage that sits above the minimum and the all-employees median, but below the full-time average and median. Whether it feels like a good salary depends on your industry, your state, and the award or agreement that covers you. If you want to see exactly where your pay lands on the national line, use our Place a salary on the line tool.