Minimum wage increase 2026 Australia: where it sits against the national average
The national minimum wage increased on 1 July 2026 to $26.44 an hour, $1,004.90 a week, or about $52,255 a year on a 38-hour week. Award minimum wages also rose by 4.75%. This page looks at how the new minimum compares to the full-time average salary and what a resident worker might take home after tax.
How the minimum wage compares to the national average
The ABS Average Weekly Earnings for May 2026 puts the full-time adult ordinary-time average at $2,083.70 a week, or about $108,352 a year. That is the reference line on this site. The minimum wage is roughly 48% of that average. For context, the full-time median salary is about $90,532 (ABS Employee Earnings, August 2025), so the minimum wage is about 58% of the median. The all-employees median (including part-time and casual) is about $74,100.
Men’s full-time average earnings are about $113,412, women’s about $100,594. The minimum wage sits well below both, reflecting its role as a safety net for the lowest-paid workers.
Take-home pay for a minimum-wage worker
Using the 2026–27 resident tax rates from the ATO, a worker earning exactly the minimum wage of $52,255 would pay:
- No tax on the first $18,200
- 15% on the next $26,800 ($4,020)
- 30% on the remaining $7,255 ($2,176.50)
- Total income tax: $6,196.50
- Medicare levy at 2%: $1,045.10
- Total deductions: about $7,242
- Take-home pay: about $45,013 per year, or $866 per week
This is a rough sketch. Individual circumstances (tax offsets, family benefits, HELP repayments) can change the final amount.
Take-home pay for an average earner
For comparison, a resident earning the full-time average of $108,352 would face:
- No tax on the first $18,200
- 15% on the next $26,800 ($4,020)
- 30% on the next $63,352 ($19,005.60)
- Total income tax: $23,025.60
- Medicare levy: $2,167.04
- Total deductions: about $25,193
- Take-home pay: about $83,159 per year, or $1,599 per week
The average earner takes home roughly 1.85 times what a minimum-wage worker takes home, before any other deductions or benefits.
State differences
Full-time average earnings vary by state. The highest is the Australian Capital Territory at about $119,090, followed by Western Australia at $115,825. The lowest is Tasmania at $96,008. The minimum wage is the same nationwide, so its relative position differs: in Tasmania it is about 54% of the state average, while in the ACT it is about 44%. See States and territories for more detail.
What the increase means
The 4.75% rise in award minimums and the new national minimum wage are intended to keep pace with living costs. Fair Work’s decision affects about 2.6 million award-reliant workers. For someone on the minimum wage, the increase adds roughly $1.20 per hour compared to the previous rate.
If you earn a different salary, you can Place a salary on the line to see how it compares to the national full-time average, the median, and the minimum wage.
Summary
The minimum wage increase 2026 Australia sets a floor of $52,255 a year. The full-time average is more than double that, at $108,352. After tax, a minimum-wage worker takes home about $45,000, while an average earner takes home about $83,000. These figures use the latest ABS, Fair Work, and ATO data and assume a standard 38-hour week with no overtime or allowances.