Where $40 per hour sits against the national average
If you earn $40 per hour in Australia and work a standard 38-hour week, your annual salary before tax is roughly $79,040. That figure comes from multiplying $40 by 38 hours, then by 52 weeks. It is a common benchmark for many full-time roles, but how does it compare to the official measures?
The national full-time adult ordinary-time average, as published by the ABS in Average Weekly Earnings for May 2026, is $2,083.70 per week, or about $108,352 per year. Your $79,040 is about $29,312 less than that average. In percentage terms, you are earning about 73% of the average full-time wage.
Median earnings and the minimum wage
The full-time median, from the ABS Employee Earnings survey for August 2025, is about $90,532 per year. That is still above $79,040, meaning half of all full-time workers earn more than that median. The all-employees median (including part-time and casual) is about $74,100, so your $79,040 is above that broader measure.
The national minimum wage, set by Fair Work from 1 July 2026, is $26.44 per hour, or $1,004.90 per week, which works out to about $52,255 per year on 38 hours. Your $40 per hour is well above that floor. Award minimums rose by 4.75% from that date, so many award-covered roles would still be below $40.
A resident take-home sketch
Using the 2026–27 tax rates for a resident, your $79,040 is taxed as follows:
- Nil on the first $18,200
- 15% on the next $26,800 (from $18,201 to $45,000) = $4,020
- 30% on the remaining $34,040 (from $45,001 to $79,040) = $10,212
- Total income tax: $14,232
- Medicare levy (2%): $1,580.80
- Total deductions: about $15,813
- Net annual income: about $63,227
- Net weekly income: about $1,216
This is a rough estimate and does not include the low-income tax offset or other offsets, which could reduce tax slightly. The take-home amount is about 80% of your gross.
How it compares across states
The ABS also publishes state full-time averages. Your $79,040 is below every state and territory average. For context:
- New South Wales: $109,658
- Victoria: $106,137
- Queensland: $106,064
- South Australia: $102,450
- Western Australia: $115,825
- Tasmania: $96,008
- Northern Territory: $103,173
- Australian Capital Territory: $119,090
Even in Tasmania, the lowest state average, you would be about $16,968 below the full-time average. This highlights that $40 per hour, while above the minimum, is still below typical full-time earnings in every part of the country.
What this means for your salary position
If you are earning $40 per hour, you are earning more than the minimum wage and more than the all-employees median, but less than the full-time median and well below the full-time average. This is a common position for many workers in retail, hospitality, administration, and trades. To see where your salary sits on the line, you can place a salary on the line. For a breakdown by state, visit the states and territories page.
Other considerations
Your actual take-home pay depends on whether you have a HELP debt, private health insurance, or other deductions. The figures here assume no other adjustments. Also, if you work more than 38 hours per week, your annual salary would be higher, but the standard full-time measure uses 38 hours.
The ABS Average Weekly Earnings is published twice a year, for May and November, so the May 2026 figure is the most current available. The medians from August 2025 are the latest from that survey. Fair Work’s minimum wage applies from 1 July each year.
For more detail on how these figures are set, see the data page. You can also explore job medians and industry medians to see how different roles compare. The guides offer further explanation of salary benchmarks.
In summary, $40 per hour annual salary in Australia is $79,040, which is below the national full-time average of $108,352. It is a solid wage above the minimum, but still below the typical full-time worker’s earnings.