Understanding minimum wage rates australia and your take-home pay

How to compare job offers using your take-home pay

When you receive a job offer, the headline salary can be misleading. What matters is the amount that lands in your bank account after tax, the Medicare levy, and any other deductions. This guide explains how to evaluate offers using current minimum wage rates australia as a baseline.

The national minimum wage

Fair Work sets the national minimum wage. From 1 July 2026, it is $26.44 per hour or $1,004.90 per week for a 38‑hour week. Annualised, that is $52,255. Casual employees must receive at least $33.05 per hour including the 25% casual loading. These figures are before tax and super.

Most employees are covered by an award or enterprise agreement that may pay more. Always check your specific award using the Fair Work Pay Calculator.

From gross to net: tax and Medicare

Your take-home pay depends on the 2026–27 tax rates:

• $0 – $18,200: no tax
• $18,201 – $45,000: 15c for each dollar over $18,200
• $45,001 – $135,000: $4,020 plus 30c for each dollar over $45,000
• $135,001 – $190,000: $31,020 plus 37c for each dollar over $135,000
• Over $190,000: $51,370 plus 45c for each dollar over $190,000

You may also be eligible for the Low Income Tax Offset (LITO). For 2026–27, the maximum LITO is $700, reducing by 5c per dollar between $37,500 and $45,000, then by 1.5c per dollar up to $66,667. It can only reduce your tax to zero.

The Medicare levy is 2% of your taxable income. The latest published single‑person thresholds are $28,011 (lower) and $35,013 (upper). If your income is below $28,011, you pay no levy. Between $28,011 and $35,013, the levy is phased in at 10c per dollar over the lower threshold. Above $35,013, you pay the full 2%. A minimum‑wage earner on $52,255 pays the full levy.

Example: minimum wage take-home

For a full‑time employee earning $52,255:

• Tax: $4,020 + 30c × ($52,255 – $45,000) = $4,020 + $2,176.50 = $6,196.50
• LITO: $325 – 1.5c × ($52,255 – $45,000) = $325 – $108.83 = $216.17 (capped at reducing tax to zero; tax after LITO = $5,980.33)
• Medicare levy: 2% × $52,255 = $1,045.10
• Total deductions: $7,025.43
• Annual take-home: $45,229.57
• Fortnightly take-home: $1,739.60 (rounded)

This is an estimate only. It excludes HELP/HECS, the Medicare levy surcharge, salary sacrifice, and payroll rounding.

Superannuation is on top

From 1 July 2026, your employer must contribute 12% superannuation on your ordinary time earnings, up to a maximum contribution base of $270,830. Super is not deducted from your pay; it is paid separately into your super fund. When comparing offers, always check whether the salary is quoted “plus super” or “including super”. Most job ads show base salary plus super.

Using our tools to compare offers

Our Take-home pay guide walks you through the calculation step by step. You can also use the Clearance tool to estimate your net pay for any salary. For a quick reference, see the Benchmarks page, which shows the national minimum wage, average weekly earnings, and full‑time ordinary time earnings.

What to look for in a job offer

1. Base salary – Is it above the minimum wage? Check the relevant award.
2. Superannuation – Confirm it is 12% on top.
3. Tax and Medicare – Use the rates above to estimate take-home.
4. Other deductions – Salary packaging, HELP/HECS repayments, or the Medicare levy surcharge (if you earn over $90,000 single and don’t have appropriate private hospital cover).

By focusing on take-home pay, you can make a fair comparison between offers, even if the gross salaries differ.

Summary

The national minimum wage is $26.44 per hour, but your actual take-home depends on tax, the Medicare levy, and super. Use our Method page to understand how we calculate estimates. Always verify with the Australian Taxation Office or a registered tax agent for your personal circumstances.