The National Minimum Wage and the Full-Time Average
The Australian minimum wage from 1 July 2026 is set by Fair Work at $26.44 an hour. On a standard 38-hour week, that works out to $1,004.90 a week, or about $52,255 a year before tax. This figure is the legal floor for most employees not covered by an award or enterprise agreement.
How does that compare to the national full-time average? The ABS Average Weekly Earnings for May 2026 puts the national full-time adult ordinary-time average at $2,083.70 a week, or about $108,352 a year. That is more than double the minimum wage. The gap is even wider when you look at the full-time median of about $90,532 (ABS Employee Earnings, August 2025) or the all-employees median of about $74,100.
Why Awards and States Shift the Figure
The national minimum wage is a baseline, but most employees earn more because of awards, enterprise agreements, or market rates. Award minimums rose by 4.75% from 1 July 2026, which can push pay above the national minimum. For example, a retail award might set a higher hourly rate, and a construction award could be significantly higher still. This is why the national minimum wage alone does not reflect what most Australians earn.
State averages also vary. The ABS data shows that the Australian Capital Territory has the highest full-time average at about $119,090, while Tasmania has the lowest at about $96,008. Western Australia ($115,825) and New South Wales ($109,658) are above the national line, while Victoria ($106,137) and Queensland ($106,064) are close. South Australia ($102,450) and the Northern Territory ($103,173) sit below the national average. An employee on the national minimum wage in the ACT would be further from the state average than someone in Tasmania.
How the Figures Are Set
The national minimum wage is reviewed annually by the Fair Work Commission. The 2026 decision increased the hourly rate to $26.44. The ABS publishes Average Weekly Earnings twice a year, for May and November. The May 2026 figure of $2,083.70 is the most recent full-time average. Medians come from the ABS Employee Earnings survey, last released for August 2025. These different sources give a fuller picture of where pay sits.
Placing Your Salary on the Line
If you want to see where your own pay sits against the national full-time average, you can place a salary on the line. The tool accepts a yearly salary before tax and shows the weekly and hourly equivalent on a 38-hour week, plus the distance from the average. It does not ask for login details or tax returns.
State and territory averages are also available. You can explore how your location compares by visiting the states and territories page. For example, if you live in Western Australia, the state average of about $115,825 is above the national line, meaning the same salary goes further or shorter depending on your industry.
Understanding the Gap
The national minimum wage of about $52,255 a year is well below the full-time average of $108,352. But many workers on awards earn more, and state averages show that where you live matters. The ABS data also shows a gender pay gap: men's full-time ordinary-time average is about $113,412, while women's is about $100,594. The minimum wage does not differentiate by gender, but industry and award coverage can affect who earns it.
Tax on the minimum wage in 2026–27 is low. The tax-free threshold is $18,200, then 15% up to $45,000, 30% up to $135,000, plus the 2% Medicare levy. A worker on the minimum wage would pay little tax, but the gap to the average remains large.
Key Takeaways
- The national minimum wage from 1 July 2026 is $26.44 an hour, about $52,255 a year.
- The full-time average is $108,352 a year, more than double the minimum.
- Award minimums rose 4.75% and can be higher than the national minimum.
- State averages range from about $96,008 (Tasmania) to $119,090 (ACT).
- For more detail on how figures are set, see How the figures are set.
- To compare your salary, use the line tool.