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Minimum Wage Australia 2026: How It Compares to the National Average

The national minimum wage from 1 July 2026 is $26.44 per hour, or about $52,255 a year on a 38-hour week, which is roughly 48% of the national full-time average of $108,352.

This sits $56,097 under the Australian full-time average, about 51.8% below the line. The closest full-time state average is Tasmania. It is off the left edge of the ruler. This close-up only covers full-time state averages.

Week, hour, and a tax sketch

$1,005 a week · $26.44 an hour if spread over 38 hours

About $45,013 after resident income tax and a 2% Medicare levy.

2026–27 resident rates and a 2% Medicare levy. Not a tax assessment.Open the full line

Minimum wage Australia 2026: the new rate

From 1 July 2026, Fair Work raised the national minimum wage to $26.44 an hour, $1004.9 a week, and about $52,255 a year on a standard 38-hour week. Award minimums also increased by 4.75%. This is the legal floor for most employees not covered by an award or registered agreement.

How the minimum wage compares to the national full-time average

The national full-time adult ordinary-time average, drawn from the ABS Average Weekly Earnings for May 2026, is $2083.7 per week or $108,352 per year (multiplied by 52). The minimum wage sits at roughly 48% of that average.

For context, the full-time median (ABS Employee Earnings, August 2025) is about $90,532 a year, and the all-employees median is about $74,100 a year. The minimum wage is well below both medians, reflecting its role as a safety net rather than a typical wage.

State full-time averages also show how the minimum wage compares across the country:

  • 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

Every state and territory average is more than double the minimum wage. You can see how your own salary measures up by using the Place a salary on the line tool, or explore States and territories for a deeper breakdown.

Take-home pay on the minimum wage: a resident sketch

A single resident earning the minimum wage of $52,255 in 2026–27 would face the following tax and Medicare levy:

  • Tax-free threshold: $0 on the first $18,200
  • 15% on $18,201 to $45,000: $4,020 on $26,800
  • 30% on $45,001 to $135,000: $2,176.50 on $7,255 (the portion above $45,000)
  • Total tax: $6,196.50
  • Medicare levy (2%): $1,045.10
  • Total deductions: $7,241.60
  • Take-home pay: about $45,013 per year, or $866 per week

Compare that to the average full-time salary of $108,352:

  • Tax: $31,020 (0 on $18,200, $4,020 on $26,800, $27,000 on $90,000)
  • Medicare levy (2%): $2,167.04
  • Total deductions: $33,187.04
  • Take-home pay: about $75,165 per year, or $1,445 per week

So the minimum wage take-home is roughly 60% of the average take-home. The gap narrows slightly after tax because the tax system is progressive, but the difference remains substantial.

Where the minimum wage sits in the broader picture

The minimum wage is a floor, not a target. Many employees covered by awards or enterprise agreements earn more. The ABS medians show that half of full-time workers earn above $90,532, and half of all employees earn above $74,100. The minimum wage is well below both.

If you want to see where your own pay sits relative to the national average, the Place a salary on the line tool can show your weekly and hourly equivalents and your distance from the line. For a state-by-state view, visit States and territories.

Remember that the national minimum wage applies to employees not covered by an award or agreement. Award rates are generally higher, and the 4.75% increase from 1 July 2026 applies to most award minimums as well. Always check your specific award or agreement for the correct rate.

Key distinctions: average, median, and minimum

It is important to keep these figures separate:

  • Full-time average: $108,352 per year (ABS Average Weekly Earnings, May 2026) – the mean of all full-time adult ordinary-time earnings.
  • Full-time median: about $90,532 per year (ABS Employee Earnings, August 2025) – the middle point; half earn more, half less.
  • All-employees median: about $74,100 per year (same source) – includes part-time and casual workers.
  • Minimum wage: about $52,255 per year (Fair Work, from 1 July 2026) – the legal minimum for award-free employees.

Each serves a different purpose. The average is pulled up by high earners, the median better reflects the typical worker, and the minimum is the safety net. For most comparisons, the full-time average is the reference line used on this site.

Final thoughts

At roughly half the national full-time average, the minimum wage in Australia provides a baseline income that, after tax, leaves a single resident with about $866 per week. While that is well below the average take-home of $1,445, it is a legally protected floor that increases annually. For more detail on how the figures are set, see How the figures are set.

Questions

What is the minimum wage in Australia from 1 July 2026?

Fair Work set the national minimum wage at $26.44 per hour, $1004.9 per week, and about $52,255 per year on a 38-hour week. Award minimums rose by 4.75% from the same date.

How does the minimum wage compare to the full-time average?

The national full-time adult ordinary-time average is $108,352 per year (ABS Average Weekly Earnings, May 2026). The minimum wage is roughly 48% of that figure. The full-time median is about $90,532, and the all-employees median is about $74,100 (ABS Employee Earnings, August 2025).

What is the take-home pay on the minimum wage after tax?

Using 2026–27 tax rates and the 2% Medicare levy, a single resident earning the minimum wage of $52,255 would pay about $6,197 in tax and $1,045 in Medicare levy, leaving a take-home of roughly $45,013 per year, or about $866 per week. This is about 60% of the average full-time take-home of around $75,165.

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