Minimum wage casual Australia: How to compare job offers using take-home pay

How to compare job offers using the amount that reaches your account

When you’re looking at a job ad, the hourly rate or annual salary is only part of the picture. What really matters is the money that lands in your bank account after tax, the Medicare levy, and any other deductions. This is especially important when comparing casual and permanent roles, because casual rates include a loading that can make the gross pay look higher, but you lose paid leave and other entitlements.

The minimum wage casual Australia rate

Fair Work sets the national minimum wage. From 1 July 2026, the adult rate is $26.44 per hour or $1,004.90 per week before tax. If you are a casual employee not covered by an award or enterprise agreement, you also get a 25% casual loading. That means the minimum casual rate is $33.05 per hour. Most employees are covered by a modern award, which may have different rates, but the lowest award rate must be at least $26.44 per hour.

Fair Work explains that the National Minimum Wage applies to employees not covered by an award or agreement, and casual employees get the 25% loading on top.

Calculating take-home pay for a minimum wage worker

Let’s work through an example. Suppose you work 38 hours per week, 52 weeks a year, on the national minimum wage of $26.44 per hour. Your annual gross pay is:

• $26.44 × 38 hours × 52 weeks = $52,255

Now subtract income tax and the Medicare levy using the 2026–27 rates.

Income tax

• First $18,200: $0
• Next $26,800 (up to $45,000): 15c per dollar = $4,020
• Remaining $7,255: 30c per dollar = $2,176.50
• Gross tax = $6,196.50
• Less Low Income Tax Offset (LITO): at $52,255, LITO = $325 – (($52,255 – $45,000) × 1.5c) = $216.18
• Tax after offset = $5,980.32

Medicare levy

• 2% of $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

That works out to about $870 per week or $1,740 per fortnight. Remember, superannuation is paid on top of your salary (12% from 1 July 2026) and does not reduce your take-home pay.

What changes for casual employees?

If you are casual and receive the 25% loading, your hourly rate is $33.05. Working 38 hours per week gives an annual gross of $65,338. The tax and Medicare calculations change:

• Tax on $65,338: $4,020 + (($65,338 – $45,000) × 0.30) = $4,020 + $6,101.40 = $10,121.40
• LITO at $65,338: $0 (income above $66,667, but at $65,338 it’s $325 – (($65,338 – $45,000) × 1.5c) = $325 – $305.07 = $19.93)
• Tax after LITO = $10,101.47
• Medicare levy = $1,306.76
• Total deductions = $11,408.23
• Annual take-home = $53,929.77 (about $1,037 per week or $2,074 per fortnight)

Casual employees get more take-home per hour, but you don’t accrue annual leave, sick leave, or public holiday pay. When comparing offers, factor in the value of those entitlements.

Using the take-home pay approach to compare offers

To compare any job offer, follow these steps:

1. Get the gross annual salary – Multiply the hourly rate by hours per week and weeks per year. For casual, include the loading.
2. Estimate tax and Medicare – Use the ATO’s tax tables or our Tax and Medicare guide. The Medicare levy is 2% of your taxable income, but if you earn below $28,011 you pay nothing; between $28,011 and $35,013 you pay a reduced rate.
3. Subtract other deductions – HELP/HECS repayments, salary sacrifice, or the Medicare levy surcharge (if applicable) will further reduce take-home.
4. Compare the net figures – The offer with the higher take-home pay may not always be better if it lacks leave or job security.

Key points to remember

• The national minimum wage is $26.44 per hour (adult, non-casual). Casual loading adds 25%.
• Award rates may be different, but the lowest adult rate in any award must be at least $26.44 per hour.
• Super is not deducted from your pay; it’s an extra 12% paid by your employer.
• The Medicare levy single thresholds are $28,011 (lower) and $35,013 (upper). If your taxable income is below $28,011, you pay no levy.
• Use the Clearance tool to check your specific situation, or read our Minimum wage guide for more details.

Always look at the net amount – what you actually take home – when deciding between jobs. A higher gross rate can be misleading if you don’t account for tax and lost entitlements.

Disclaimer

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. For personalised advice, consult a registered tax agent.