Understanding what is minimum wage in Australia and your take-home pay

What is minimum wage in Australia? A guide to your take-home pay

If you are asking what is minimum wage in Australia, the answer is $26.44 an hour and $1,004.90 a week, as set by Fair Work. But the number you see in a job ad is not what lands in your bank account. This guide explains the difference between gross salary, total package, and take-home pay.

Gross salary vs package vs take-home

Your gross salary is the amount before any deductions. For a full-time minimum wage earner working 38 hours a week, that is $52,255 a year. Your total package includes the 12% super guarantee your employer pays on top – that is an extra $6,270.60, making the package $58,525.60. But super is not cash in hand; it goes into your super fund. Your take-home pay is what reaches your bank account after the Australian Taxation Office deducts income tax and the Medicare levy.

How much tax and Medicare do you pay?

The tax rates for 2026–27 are progressive. On $52,255, you pay:

• Nil on the first $18,200
• 15c per $1 from $18,201 to $45,000 ($4,020)
• 30c per $1 from $45,001 to $52,255 ($2,176.50)

Total income tax before offsets: $6,196.50. You then get the Low Income Tax Offset (LITO) – at $52,255 it reduces your tax by about $216. So income tax after LITO is roughly $5,980.50.

The Medicare levy is 2% of your taxable income – $1,045.10. The latest published single-person Medicare thresholds are $28,011 and $35,013. Because your income is above $35,013, you pay the full 2%.

Total deductions: about $7,025.60. Your take-home pay is approximately $45,229.40 a year, or $869.80 a week. If you are paid fortnightly, that is about $1,739.60 per fortnight.

Common mix-ups

Many job ads say “$26.44 per hour plus super”. That means the $26.44 is before super – your take-home is less because of tax and Medicare. Some people confuse the package (salary plus super) with take-home. Remember: super is not available to spend until retirement. For more detail, see our Minimum wage guide and Take-home pay page.

What about the Medicare levy surcharge?

This guide does not include the Medicare levy surcharge, which applies if you do not have appropriate private hospital cover and earn above a threshold. The minimum wage is well below that threshold, so it does not affect you here.

Final note

This is an estimate only. It excludes HELP/HECS repayments, salary sacrifice, and payroll rounding. Always use the Clearance tool for a personalised calculation. The Australian Taxation Office provides the official tax tables, and Fair Work sets the minimum wage. For more on tax and Medicare, visit Tax and Medicare.