National minimum wage and the full-time average
The national minimum wage is the legal floor for most employees in Australia. From 1 July 2026, Fair Work set it at $26.44 an hour, $1,004.90 a week, or about $52,255 a year on a 38-hour week. This article explains where that figure sits against the national full-time average, the medians, and state averages.
How the minimum wage compares to the full-time average
The ABS Average Weekly Earnings for May 2026 show a national full-time adult ordinary-time average of $2,083.70 a week, or about $108,352 a year. The national minimum wage is roughly 48% of that average. The gap is large: the minimum wage is about $56,000 a year less than the average.
The full-time median, from the ABS Employee Earnings survey of August 2025, is about $90,532 a year. The all-employees median (including part-time and casual) is about $74,100. The minimum wage sits well below both medians. Men's full-time average is about $113,412; women's is about $100,594. The minimum wage is below both.
Award minimums and the minimum wage
Award minimums rose by 4.75% from 1 July 2026. Many awards pay more than the national minimum wage. For example, a retail employee under the General Retail Industry Award may earn a higher rate. The national minimum wage is the safety net for workers not covered by an award or agreement. If you are unsure which rate applies, you can place a salary on the line to see how it compares.
State differences
Full-time averages vary by state and territory. The highest is the Australian Capital Territory at about $119,090 a year; the lowest is Tasmania at about $96,008. The national minimum wage is below every state average. For more detail, see the states and territories page.
State full-time averages (ABS Average Weekly Earnings, May 2026):
- 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
Tax on the minimum wage
For 2026–27, the resident tax rates are: nil on the first $18,200; 15% on income from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; and 45% above $190,000. The Medicare levy is 2% before any reductions.
A worker on the national minimum wage of about $52,255 would pay approximately $6,200 in tax plus $1,045 in Medicare levy, leaving about $44,900 after tax. This is a rough estimate; use the ATO's tax calculator for precise figures.
Medians and the minimum wage
The ABS Employee Earnings survey (August 2025) gives medians that help put the minimum wage in context. The full-time median of $90,532 is 73% higher than the minimum wage. The all-employees median of $74,100 is 42% higher. The minimum wage is a floor, not a typical wage.
Why the gap matters
The gap between the minimum wage and the average reflects the structure of the labour market. Many workers earn above the minimum due to awards, enterprise agreements, or market rates. The national minimum wage is designed to provide a basic standard of living, but it is not a living wage in the sense of meeting all costs. For more on how figures are set, see How the figures are set.
Frequently asked questions
See the FAQs above for common queries about the national minimum wage.
Summary
The national minimum wage of about $52,255 a year is significantly below the full-time average of $108,352. It is about 48% of the average, and well below the medians. State averages are all above the minimum wage. The minimum wage is updated annually by Fair Work each year. For a personal comparison, you can Place a salary on the line to see where it sits.
Further reading
- Guides for more salary topics
- Industry medians for sector comparisons
- About this site for methodology