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.