Australia lowest salary: the national minimum wage
When people ask about the lowest salary in Australia, they are usually referring to the National Minimum Wage – the legal floor for pay. As of 1 July 2026, that rate is $26.44 per hour or $1,004.90 per week, according to Fair Work. On a standard 38-hour week, that works out to about $52,255 a year before tax.
This minimum applies to employees who are not covered by an award or enterprise agreement. Most workers, however, are covered by an industry or occupation award, which typically sets higher minimum rates. Award minimums also increased by 4.75% in the latest annual wage review.
How the lowest salary compares to the full-time average
The national full-time adult average ordinary-time earnings – the figure used on this site as the line – is $2,083.70 per week or about $108,352 a year, from the ABS Average Weekly Earnings for May 2026. That means the minimum wage is roughly 48% of the full-time average.
For context, the full-time median (from ABS Employee earnings, August 2025) is about $90,532 a year, and the all-employees median is about $74,100 a year. So the lowest legal salary sits well below both the average and the typical worker’s pay.
State and territory differences
Full-time average earnings vary across Australia. The lowest state average is Tasmania at about $96,008 a year, followed by South Australia at about $102,450. The highest is the ACT at about $119,090. The national minimum wage is the same everywhere, but in lower-average states like Tasmania, the minimum wage is a larger share of the local average (about 54%) than in higher-average states like Western Australia (about 45%).
See how your state compares on the line
What about after tax?
For the 2026–27 financial year, the resident tax rates are:
- Nil on the first $18,200
- 15% on income from $18,201 to $45,000
- 30% on income from $45,001 to $135,000
- 37% on income from $135,001 to $190,000
- 45% on income above $190,000
Plus a 2% Medicare levy (with reductions for low-income earners).
On the minimum wage of $52,255, the tax would be roughly:
- $0 on the first $18,200
- 15% on the next $26,800 = $4,020
- 30% on the remaining $7,255 = $2,176.50
- Total tax before Medicare levy: about $6,196.50
- Medicare levy (2% of taxable income): about $1,045.10
- Total tax and Medicare: about $7,241.60
- Net pay: about $45,013 a year, or about $865 a week.
Place a salary on the line to see your own after-tax figure
Why the minimum wage matters
The National Minimum Wage is reviewed annually by the Fair Work Commission. It sets the floor for the entire labour market. While most employees earn more, the minimum wage is a benchmark for the lowest acceptable pay. It also influences award rates, enterprise agreements, and even some contract rates.
If you are paid the minimum wage, you are earning about half of what the average full-time worker earns. That gap has narrowed slightly in recent years as minimum wage increases have sometimes outpaced average earnings growth, but the difference remains substantial.
Where to find more
For detailed pay data by occupation or industry, see the job medians and industry medians pages. For an explanation of how the figures are set, visit How the figures are set.
A note on sources
- The full-time average is from the ABS Average Weekly Earnings, May 2026.
- Medians are from the ABS Employee earnings, August 2025.
- The minimum wage is from Fair Work, effective 1 July 2026.
- Tax rates are from the ATO for 2026–27.
These are the most current official figures available. The ABS releases Average Weekly Earnings twice a year, in May and November.