How much is the minimum wage in Australia?
The national minimum wage in Australia is set by Fair Work and applies to employees not covered by an award or registered agreement. From 1 July 2026, the rate is $26.44 per hour, which translates to $1004.90 per week or about $52,255 per year based on a standard 38-hour week. Award minimums also increased by 4.75 per cent on the same date.
This figure is the legal floor for pay in Australia. Many workers earn more through industry awards, enterprise agreements, or individual contracts. The minimum wage is reviewed annually by the Fair Work Commission.
How the minimum wage compares to the national full-time average
The national full-time adult ordinary-time average, as measured by the ABS Average Weekly Earnings for May 2026, is $2083.70 per week or about $108,352 per year. That means the minimum wage is roughly 48 per cent of the full-time average. It is also significantly below the full-time median of $90,532 and the all-employees median of $74,100 (ABS Employee Earnings, August 2025).
For context, the minimum wage is lower than every state and territory full-time average. For example, Tasmania has the lowest state average at $96,008, still well above the minimum wage. The highest is the Australian Capital Territory at $119,090.
Minimum wage by state and territory
While the national minimum wage is uniform, state averages vary. The table below (based on ABS Average Weekly Earnings, May 2026) shows how each state's full-time average compares:
- 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
All of these are well above the minimum wage. For a detailed breakdown of averages by state, see the States and territories page.
What the minimum wage means for take-home pay
Using the 2026–27 resident tax rates from the ATO, a person earning the minimum wage of $52,255 would fall into the 30 per cent bracket (after the tax-free threshold of $18,200). The estimated tax would be about $5,092, plus the Medicare levy of 2 per cent ($1,045), leaving a take-home pay of roughly $46,118 per year, or about $887 per week. This is before any deductions, offsets, or the low-income tax offset, which may reduce tax further.
How the minimum wage fits into the broader pay landscape
The minimum wage is a floor, not a target. Most full-time workers earn above it. The full-time average of $108,352 is more than double the minimum wage. Even the all-employees median of $74,100 is about 42 per cent higher. If you earn the minimum wage, you are in the bottom part of the earnings distribution.
To see where your own salary sits relative to the national full-time average, use the Place a salary on the line tool. It shows your weekly and hourly pay on a 38-hour week and the distance from the average.
Understanding the figures
The national full-time average of $108,352 comes from the ABS Average Weekly Earnings survey, which measures ordinary-time earnings for full-time adult employees. It does not include overtime or part-time workers. The minimum wage, on the other hand, is a legal rate set by Fair Work for all employees not covered by awards. The two figures serve different purposes: the average shows what typical full-time workers earn, while the minimum wage is a floor.
The minimum wage in context
At $52,255 per year, the minimum wage is less than half the full-time average. It is also below the all-employees median of $74,100, meaning more than half of all employees earn more than the minimum. The full-time median of $90,532 is 73 per cent higher.
Award wages vs national minimum wage
Many employees are covered by industry or occupation awards, which set minimum rates higher than the national minimum. From 1 July 2026, award minimums increased by 4.75 per cent. For example, a retail employee or a hospitality worker may have a higher minimum rate under their award. The national minimum wage applies only to those not covered by any award or agreement.
How the site calculates your position
The Place a salary on the line tool uses the ABS full-time average as the benchmark. It converts your yearly salary to weekly and hourly figures based on a 38-hour week, then shows how far above or below the average you are. For a minimum wage earner, the distance would be about -52 per cent (i.e., 48 per cent of the average).
State differences
While the national minimum wage is the same everywhere, state averages differ. For instance, Western Australia's full-time average of $115,825 is more than double the minimum wage. The ACT's average of $119,090 is even higher. Even Tasmania, with the lowest state average, is $96,008, well above the minimum. This highlights that the minimum wage is a floor, not a reflection of typical earnings in any state.
Tax considerations
The 2026–27 tax rates apply to all residents. The minimum wage earner falls into the 30 per cent marginal rate but only on a small portion of income. The effective tax rate is about 9.7 per cent before Medicare. The low-income tax offset may reduce tax to zero for very low incomes, but at $52,255, some tax is payable.
Conclusion
The minimum wage in Australia from 1 July 2026 is $26.44 per hour, $1004.90 per week, or about $52,255 per year. It is significantly below the national full-time average of $108,352 and the medians. For a personalised comparison, use the site's tool.