What is the minimum annual salary in Australia?
The minimum annual salary in Australia is set by Fair Work and applies to adult employees who are not covered by an award or registered agreement. From 1 July 2026, the national minimum wage is $26.44 an hour, which for a full-time employee working 38 hours a week comes to $1,004.90 a week or about $52,255 a year. This figure is a legal floor – employers cannot pay less, except for juniors, apprentices, or trainees under specific conditions.
It is important to note that the minimum wage is not the same as award minimums. Industry and occupation awards, which cover most Australian employees, often set higher rates. Fair Work reviews award minimums each year; in 2026 they rose by 4.75%. So while the national minimum wage is the baseline, many workers are entitled to more.
How the minimum annual salary compares to the full-time average
The national full-time adult ordinary-time average is $2,083.70 a week, or about $108,352 a year (ABS Average Weekly Earnings, May 2026). That means the minimum wage is roughly 48% of the full-time average. The gap is even wider when you look at state averages. For example:
- New South Wales: about $109,658
- Victoria: about $106,137
- Queensland: about $106,064
- South Australia: about $102,450
- Western Australia: about $115,825
- Tasmania: about $96,008
- Northern Territory: about $103,173
- Australian Capital Territory: about $119,090
All of these are well above the minimum annual salary. The full-time median – the middle point of all full-time salaries – is about $90,532 (ABS Employee Earnings, August 2025), which is also far higher. The all-employees median (including part-time and casual) is about $74,100.
What does this mean for your pay?
If you are earning the minimum annual salary, you are at the bottom of the earnings distribution. The Place a salary on the line tool lets you see exactly where any salary sits against the national full-time average. For a salary of $52,255, the distance from the average is about -$56,097 a year, or -$1,079 a week.
Men's full-time average is about $113,412, women's about $100,594. The minimum wage does not vary by gender, but because women are more likely to work in lower-paid industries, they are overrepresented among minimum-wage earners.
Tax on the minimum annual salary
For the 2026–27 financial year, the tax-free threshold is $18,200. A person earning the minimum annual salary of about $52,255 would pay:
- 15% on income from $18,201 to $45,000: $4,020
- 30% on income from $45,001 to $52,255: $2,176.50
- Plus the Medicare levy of 2% on taxable income (about $1,045)
Total tax and Medicare would be roughly $7,241, leaving about $45,014 after tax. This is a rough estimate and does not include the low-income tax offset or other offsets.
How the figures are set
The national minimum wage is determined by Fair Work each financial year. The ABS publishes Average Weekly Earnings twice a year – in May and November – which gives the full-time average used on this site. Medians come from the ABS Employee Earnings survey, which is released less frequently (August 2025 is the latest). For more detail on how these figures are compiled, see How the figures are set.
Why the minimum annual salary matters
The minimum wage is a key benchmark for low-paid workers, but it is not a living wage in many parts of Australia. The gap between the minimum and the average highlights the wide dispersion of earnings. For example, the full-time average in the ACT is more than double the minimum wage. This site helps you Place a salary on the line to see where you stand.
Frequently asked questions about the minimum annual salary
What is the difference between the minimum wage and award wages?
The national minimum wage is the legal minimum for employees not covered by an award. Award wages are set by Fair Work for specific industries or occupations and are almost always higher. For example, the Hospitality Award or the Aged Care Award have minimum rates above the national minimum. If you are covered by an award, your employer must pay at least the award rate.
Does the minimum annual salary include superannuation?
No. The minimum wage is the base rate before superannuation. Employers must also pay the superannuation guarantee, which is 11.5% from 1 July 2026 (rising to 12% in future years). So the total cost to an employer for a minimum-wage employee is about $58,264 including super.
How often does the minimum wage change?
Fair Work reviews the national minimum wage annually, usually with changes taking effect on 1 July. The 2026 increase was 4.75% for award minimums, with the national minimum wage rising to $26.44 an hour. Future increases depend on economic conditions and the annual review.
For more information on how salaries compare across states and industries, see States and territories and Industry medians.