Your take-home pay on the minimum wage australia 2025 rate

Your take-home pay on the minimum wage australia 2025 rate

If you earn the national minimum wage in Australia, your gross pay is $26.44 per hour or $1,004.90 per week. But what actually lands in your bank account after tax and the Medicare levy? Let’s break it down for a full-time worker (38 hours per week, 52 weeks per year).

The annual gross salary

At $26.44 per hour, your annual gross income is $52,255. That’s the figure set by Fair Work from 1 July 2026. Your employer may advertise this rate as the minimum wage australia 2025 level, and it’s the base for your take-home calculation.

Tax brackets and the Low Income Tax Offset

The Australian Taxation Office applies progressive tax rates. For 2026–27, the first $18,200 is tax-free. The next $26,800 is taxed at 15 cents per dollar, and the remaining $7,255 at 30 cents per dollar. That gives $6,196.50 in tax. Then the Low Income Tax Offset (LITO) reduces your tax. At $52,255, you get $325 minus 1.5 cents per dollar over $45,000, so about $216. Your final income tax is roughly $5,980.

The Medicare levy

The Medicare levy is 2% of your taxable income. Because you earn above the single upper threshold of $35,013, you pay the full 2% — about $1,045. If your income were between $28,011 and $35,013, you would pay a reduced rate (10 cents per dollar over the lower threshold). The latest published single-person thresholds are $28,011 and $35,013.

Your take-home pay

After income tax and the Medicare levy, your annual take-home is about $45,230. That’s roughly $1,740 per fortnight. Super is not deducted from this amount; your employer adds 12% super on top (from 1 July 2026) into your super fund.

What changes your fortnightly amount?

• Tax brackets: If you earn more than the minimum wage, higher brackets apply. But at this level, you’re in the 30 cent bracket after $45,000.
• Medicare levy: Full 2% applies here. If your income dropped below $35,013, you’d pay less.
• Super: It doesn’t affect your bank account now, but it builds your retirement savings.

For a more personalised estimate, use our Clearance tool. You can also read more about Take-home pay and Tax and Medicare.

Remember

This is a resident estimate only. It excludes HELP/HECS, the Medicare levy surcharge, salary sacrifice, and payroll tax-table rounding. It is not a tax assessment. Always check with the Australian Taxation Office or a qualified adviser for your exact situation.