Australian minimum wage 2026-27: Your take-home pay and a note on minimum wage nz

Your take-home pay on the Australian minimum wage

If you're earning the Australian national minimum wage, you want to know exactly what lands in your bank account after tax and the Medicare levy. For the 2026–27 tax year, the rate is $26.44 per hour or $1,004.90 per week (based on a 38-hour week). That works out to an annual salary of $52,255 – the benchmark set by Fair Work.

How tax and Medicare affect your take-home pay

As a resident, your income tax is calculated using the 2026–27 tax brackets. On $52,255:

• Tax on the first $18,200: $0
• Tax on $18,201 to $45,000: 15c per $1 = $4,020
• Tax on $45,001 to $52,255: 30c per $1 = $2,176.50
• Gross tax before offsets: $6,196.50

You're eligible for the Low Income Tax Offset (LITO). At $52,255, the offset is $325 minus 1.5c per $1 over $45,000, which gives you about $216. So your tax after LITO is $5,980.50.

The Medicare levy is a flat 2% on taxable income because $52,255 is above the upper single threshold of $35,013. That adds $1,045.10.

Total deductions: $7,025.60. Your annual take-home pay: $45,229.40. That's roughly $1,740 per fortnight or $870 per week.

This is an estimate only. It excludes HELP/HECS, the Medicare levy surcharge, salary sacrifice, and payroll rounding. Use our Take-home pay calculator for a personalised result.

Super is on top, not deducted

Employers must pay superannuation at 12% on top of your ordinary time earnings (from 1 July 2026). That means your total employment cost is higher, but super doesn't reduce your take-home pay – it's paid into your super fund separately. Job advertisements often quote a salary "plus super", so the take-home figures above are based on the cash salary before super.

Award-covered employees may earn more

The national minimum wage applies only if you're not covered by an award or enterprise agreement. Most employees in Australia are covered by an award, which sets higher minimum rates. For example, the lowest award rate must be at least $26.44 per hour, but many awards have higher classifications. Check your award using the Fair Work Ombudsman's Pay Calculator.

A note on minimum wage nz

While this article focuses on Australia, you might be researching 'minimum wage nz' for comparison. New Zealand has its own minimum wage set by the New Zealand government, which is different from Australia's system. We don't have current NZ figures here, but you can visit the New Zealand Employment website for official rates. Remember that cost of living, tax rates, and social security differ between the two countries.

Medicare levy thresholds explained

The Medicare levy has a shading zone for low-income earners. For singles, the latest published thresholds are $28,011 (lower) and $35,013 (upper). If your taxable income is below $28,011, you pay no levy. Between $28,011 and $35,013, you pay 10 cents per dollar over the lower threshold. Above $35,013, you pay the full 2% on all income. Since the minimum wage annual salary is $52,255, you're firmly in the full levy zone.

Fortnightly budgeting on the minimum wage

After tax and Medicare, your fortnightly take-home is about $1,740. That's the amount you can use for rent, bills, groceries, and savings. If you're paid weekly, expect around $870 per week. These figures assume no other deductions like salary packaging or union fees.

Use our tools to check your own situation

Your exact take-home pay depends on your circumstances – whether you have a HELP debt, earn extra income, or are entitled to offsets. Use our Clearance tool to see your net pay, or browse our Tax and Medicare guide for more details. For the latest minimum wage benchmarks, see our Minimum wage page.

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Resident estimate only. Excludes HELP/HECS, the Medicare levy surcharge, salary sacrifice, and payroll tax-table rounding. Not an assessment.