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What's the minimum wage in Australia? A take-home comparison with the average salary

The national minimum wage of $52,255 a year is about 48% of the 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

What's the minimum wage in Australia?

If you're wondering what's the minimum wage in Australia, the answer from Fair Work is straightforward. From 1 July 2026, the national minimum wage is $26.44 per hour, which works out to $1,004.90 per week on a 38-hour week, or about $52,255 per year. This is the legal floor for adult employees not covered by an award or registered agreement. Award minimums also increased by 4.75% from the same date, so many workers in specific industries will see a higher rate.

How the minimum wage sits against the national average

The site's reference point is the ABS Average Weekly Earnings for May 2026: $2,083.70 per week for full-time adult ordinary-time workers, or about $108,352 per year. That means the minimum wage is roughly 48% of the full-time average. To put it another way, someone earning the average takes home more than double the minimum wage before tax.

Medians give a different perspective. The full-time median salary is about $90,532 (ABS Employee Earnings, August 2025), while the all-employees median (including part-time and casual) is about $74,100. The minimum wage sits well below both medians, reflecting that many full-time jobs pay above the legal minimum.

A resident take-home sketch

Let's look at what a resident earning the minimum wage might actually keep after tax. Using the 2026–27 tax rates:

  • Nil tax on the first $18,200
  • 15% on income from $18,201 to $45,000
  • 30% on income from $45,001 to $135,000

On $52,255, the tax calculation is:

  • $0 on $18,200
  • 15% on $26,800 ($18,201 to $45,000) = $4,020
  • 30% on $7,255 ($45,001 to $52,255) = $2,176.50
  • Total tax = $6,196.50
  • Medicare levy (2%) = $1,045.10
  • Total deductions = $7,241.60
  • Take-home pay ≈ $45,013 per year, or about $866 per week.

This is a rough sketch. The actual amount can vary with tax offsets, family benefits, or if you're a non-resident. The point is that the minimum wage, while a legal floor, leaves a modest disposable income compared to the average.

State-by-state context

The full-time average varies across Australia. For example, the Australian Capital Territory has the highest average at about $119,090, while Tasmania is lowest at about $96,008. Western Australia ($115,825) and New South Wales ($109,658) are above the national average. The minimum wage is the same nationwide, so its relative value is higher in lower-cost states like Tasmania and South Australia ($102,450). You can explore state averages on the States and territories page.

How the figures are set

The national minimum wage is reviewed annually by the Fair Work Commission. The 2026–27 increase of 4.75% followed submissions from unions, employer groups, and the government. The ABS publishes Average Weekly Earnings twice a year (May and November), and the Employee Earnings survey every two years. For more on methodology, see How the figures are set.

Putting your own salary on the line

If you want to see how your pay compares to the national full-time average, you can Place a salary on the line. The tool accepts a yearly salary before tax and shows the weekly and hourly equivalent on a 38-hour week, plus the distance from the average. It's a quick way to check whether you're above or below the line.

Key takeaways

  • The national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, about $52,255 per year.
  • The full-time average is $108,352 per year, so the minimum wage is about 48% of that.
  • After tax and Medicare, a resident on the minimum wage takes home roughly $45,000 per year.
  • Award minimums are higher in many industries, so check your specific award if you're covered.

Remember, the minimum wage is a floor, not a target. Most full-time workers earn above it, and the median full-time salary is about $90,532. If you're earning the minimum, you're likely in a part-time or casual role, or in an industry where awards set a higher rate. For more detailed comparisons, explore Job medians and Industry medians.

Questions

What is the current minimum wage in Australia?

From 1 July 2026, the national minimum wage is $26.44 per hour, $1,004.90 per week, or about $52,255 per year on a 38-hour week. This is set by Fair Work. Award minimums also rose by 4.75% from the same date.

How does the minimum wage compare to the average salary?

The full-time average ordinary-time salary, according to the ABS Average Weekly Earnings for May 2026, is $2,083.70 per week or about $108,352 per year. The minimum wage is roughly 48% of that average. 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?

For a resident earning the minimum wage of $52,255 in 2026–27, the tax is nil on the first $18,200, then 15% on the next $26,800, and 30% on the remainder above $45,000. The estimated tax is about $5,092, plus the 2% Medicare levy of $1,045, leaving a take-home of roughly $46,118 per year, or $887 per week. This is a sketch only; individual circumstances may vary.

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