Your aus minimum wage 2025 take-home pay: what clears after tax and Medicare

Understanding the national minimum wage

When you search for "aus minimum wage 2025", you'll find references to the Fair Work Commission's annual review. The current rate, effective from 1 July 2026, is $26.44 per hour or $1,004.90 per week, as published by the Fair Work Ombudsman. This is the minimum pay for employees not covered by an award or registered agreement. If you work 38 hours a week for 52 weeks, your annual gross salary comes to $52,255.

But what you actually see in your bank account – your take-home pay – is less than that. Your employer deducts income tax and the Medicare levy before paying you. Superannuation is usually extra on top of your salary, so it doesn't reduce your take-home pay unless you salary-sacrifice.

How your take-home pay is calculated

Your take-home pay starts with your gross salary. From that, subtract:

• Income tax based on the Australian resident tax rates for the financial year.
• Medicare levy – 2% of your taxable income, unless you qualify for a reduction or exemption.
• Low Income Tax Offset (LITO) – this reduces the tax you owe, but it's applied after calculating your gross tax.

Your employer withholds these amounts through PAYG withholding and sends them to the Australian Taxation Office. The result is your net pay.

Tax rates for 2026–27

The Australian Taxation Office shows the following resident tax rates for 2026–27:

Taxable income	Tax on this income
$0 – $18,200	Nil
$18,201 – $45,000	15c for each $1 over $18,200
$45,001 – $135,000	$4,020 plus 30c for each $1 over $45,000
$135,001 – $190,000	$31,020 plus 37c for each $1 over $135,000
$190,001 and over	$51,370 plus 45c for each $1 over $190,000

These rates do not include the Medicare levy of 2%.

Medicare levy and thresholds

The Medicare levy is an additional 2% on your taxable income. However, if your income is below certain thresholds, you pay a reduced rate or nothing. The latest published single-person Medicare thresholds are $28,011 and $35,013. If your taxable income is:

• Below $28,011 – no Medicare levy.
• Between $28,011 and $35,013 – you pay 10c for each dollar over $28,011, up to the full 2% at $35,013.
• Above $35,013 – you pay the full 2%.

Since the minimum wage annual salary of $52,255 is well above $35,013, you pay the full 2% – that's $1,045.10 a year.

Low Income Tax Offset (LITO)

The LITO reduces the tax you owe, but it cannot reduce your tax below zero. For 2026–27:

• Maximum offset of $700 if your taxable income is $37,500 or less.
• Then it reduces by 5c for every dollar over $37,500 until $45,000.
• From $45,001 to $66,667, the offset is $325 minus 1.5c for every dollar over $45,000.

On a $52,255 salary, your LITO is approximately $216. This lowers your tax bill from $6,197 to about $5,980.

Superannuation is not deducted from take-home

Your employer must pay superannuation on top of your salary. From 1 July 2026, the super guarantee rate is 12% of your ordinary time earnings, up to a maximum contribution base of $270,830. If a job advertisement says "$26.44 per hour plus super", that means the $26.44 is your gross wage, and super is extra. So your take-home pay is calculated from the $26.44, not from a total including super.

Putting it all together: an example

Let's work through a full-time worker on the national minimum wage:

• Annual gross salary: $26.44 × 38 hours × 52 weeks = $52,255 (rounded)
• Income tax (before offsets): $4,020 + 0.30 × ($52,255 – $45,000) = $6,196.50
• LITO: $325 – 0.015 × ($52,255 – $45,000) = $216.18 → tax after LITO = $5,980.32
• Medicare levy: 2% × $52,255 = $1,045.10
• Total deductions: $5,980.32 + $1,045.10 = $7,025.42
• Annual take-home pay: $52,255 – $7,025.42 = $45,229.58
• Weekly take-home: $45,229.58 ÷ 52 = $869.80
• Fortnightly take-home: $45,229.58 ÷ 26 = $1,739.60

This is an estimate. Your actual take-home may differ due to rounding in payroll systems, HELP/HECS repayments, or the Medicare levy surcharge if you don't have appropriate private hospital cover.

For a more personalised calculation, use our clearance tool or check the Tax and Medicare guide. You can also compare your pay against benchmarks for full-time and all-employee averages.

Key takeaways

• The national minimum wage is $26.44 per hour or $1,004.90 per week (from 1 July 2026).
• Your take-home pay is roughly $870 per week after income tax and Medicare levy.
• Superannuation is paid on top, not deducted from your wage.
• The Medicare levy applies in full at this income level.
• LITO reduces your tax bill by about $216 a year.

Remember, this guide is for Australian residents only. If you have a HELP debt, salary sacrifice arrangements, or are not entitled to the full tax-free threshold, your take-home pay will be different. Always check with the Australian Taxation Office or a registered tax agent for your specific situation.