Compare job offers with your take-home pay: current minimum wage australia as your starting point

Compare job offers with your take-home pay

When you receive a job offer, the headline salary can be misleading. What matters is the amount that actually reaches your bank account each week or fortnight. This guide shows you how to compare offers using the current minimum wage australia as a baseline, then adjust for tax and the Medicare levy.

Start with the current minimum wage australia

The national minimum wage is set by Fair Work Ombudsman at $26.44 per hour and $1,004.90 per week (based on a 38-hour week). This is the legal floor for award-free employees. Use this figure as your anchor when evaluating any offer. If an hourly rate is below $26.44, it is likely unlawful. For more details, see our Minimum wage page.

Calculate your take-home pay

Your take-home pay depends on your taxable income, the tax brackets, the Medicare levy, and any offsets like the Low Income Tax Offset (LITO). For 2026–27, the resident tax rates are:

• Up to $18,200: nil
• $18,201 to $45,000: 15c per $1 over $18,200
• $45,001 to $135,000: $4,020 plus 30c per $1 over $45,000
• $135,001 to $190,000: $31,020 plus 37c per $1 over $135,000
• Over $190,000: $51,370 plus 45c per $1 over $190,000

LITO can reduce your tax by up to $700, phasing out between $37,500 and $66,667. The Medicare levy is 2% for most full-time workers, but reduced below the single thresholds of $28,011 and $35,013 (the latest published figures).

For a quick estimate, use our Clearance tool to see the after-tax amount for any salary.

Compare offers using take-home, not gross

When comparing two job offers, convert each to a weekly or fortnightly take-home figure. For example, an offer of $55,000 per year (just above the minimum wage annual equivalent of $52,255) will have a different take-home than an offer of $60,000. Use the tax rates above to estimate. Remember that super is not deducted from your take-home if the salary is quoted as 'plus super'. Always check whether the offer includes super or is exclusive.

Also consider salary packaging options, which can reduce your taxable income. See our Salary packaging guide for more.

The role of the Medicare levy in your comparison

The Medicare levy is a flat 2% for most earners, but if your taxable income is below $35,013 (single), you may pay less or nothing. This can make a significant difference for part-time or low-income workers. For full-time workers on the minimum wage ($52,255 annualised), the full 2% applies, adding about $1,045 to your annual tax bill.

Use benchmarks to gauge your offer

Beyond the minimum wage, you can compare your offer to average earnings. According to the ABS (May 2026), all employees average weekly total earnings are $1,579.20 (annualised $82,118), and full-time adult ordinary time earnings are $2,083.70 per week ($108,352). These figures exclude employer super. See our Benchmarks page for more.

Final tips for comparing offers

• Always ask if the salary is 'plus super' or 'inclusive of super'.
• Use the Take-home pay page to estimate your net income.
• Factor in the Medicare levy and any HELP/HECS repayments (not covered here).
• Remember that this is an estimate, not a tax assessment. Use the ATO's tax withheld calculator for precise figures.

By focusing on the amount that reaches your bank account, you can make a fair comparison between job offers and ensure you are being paid at least the current minimum wage australia.