How the minimum wage compares to the full-time average
The national minimum wage from 1 July 2026 is $26.44 an hour, $1,004.90 a week, or about $52,255 a year on a 38-hour week. That figure comes from Fair Work, the independent tribunal that sets the minimum. The ACTU (Australian Council of Trade Unions) had argued for a larger increase, but the Commission decided on a 4.75% rise for award minimums and this new national minimum wage.
Against the national full-time average of $108,352 (ABS Average Weekly Earnings, May 2026), the minimum wage sits at roughly 48%. The full-time median is about $90,532, and the all-employees median is about $74,100 (ABS Employee Earnings, August 2025). So someone on the minimum wage earns less than half the average full-time worker and well below the typical full-time earner.
A resident take-home sketch
Using the 2026–27 tax rates (nil to $18,200; 15% to $45,000; 30% to $135,000; 37% to $190,000; 45% above) and the 2% Medicare levy, here is what a resident takes home:
- Minimum wage ($52,255): Tax on the first $45,000 is $4,020; on the remaining $7,255 it is $2,176.50; total tax $6,196.50. Medicare levy $1,045.10. Net pay: about $45,013.
- Full-time average ($108,352): Tax on the first $45,000 is $4,020; on the next $63,352 it is $19,005.60; total tax $23,025.60. Medicare levy $2,167.04. Net pay: about $83,159.
The gap in take-home pay is roughly $38,000. Even after tax, the average earner takes home nearly double the minimum wage earner.
The ACTU's campaign
The ACTU regularly pushes for a minimum wage that keeps pace with living costs. In 2026, it sought a larger increase than the 4.75% awarded. While the exact figure the ACTU proposed is not recorded in our on-site notes, the outcome from Fair Work is clear: $26.44 per hour. The ACTU continues to argue that the minimum wage should be a higher proportion of the full-time average, noting that the current ratio is below historical levels.
State differences
The full-time average varies by state, from $96,008 in Tasmania to $119,090 in the ACT. A minimum wage earner in Tasmania would be at about 54% of the state average, while in the ACT it would be about 44%. These differences highlight how the same minimum wage buys different relative positions depending on where you live. For more detail, see our States and territories page.
Where to next?
If you want to see how your own salary compares to the national line, you can Place a salary on the line. For a deeper look at how the average, median, and minimum are set, visit How the figures are set. The ABS publishes Average Weekly Earnings twice a year (May and November), so the next update will show any movement in the full-time average.
Key points to remember
- The national minimum wage from 1 July 2026 is $52,255 a year.
- The full-time average is $108,352.
- The ACTU advocated for a larger increase but the Fair Work decision stands.
- Take-home pay on the minimum wage is about $45,013 after tax and Medicare.
- State averages range from about $96,000 to $119,000.
For more context on job and industry medians, see Job medians and Industry medians. Our Guides offer further explanations of how pay is measured in Australia.