What's minimum wage in Australia and how much reaches your bank after tax?

Understanding what's minimum wage in Australia and your take‑home pay

If you are paid the national minimum wage, you probably want to know exactly how much lands in your bank account each week or fortnight. The figure that matters is your take‑home pay – what remains after income tax and the Medicare levy are deducted. This guide walks you through the calculation using the latest 2026–27 rates from the Australian Taxation Office and Fair Work.

The minimum wage figures you need

Fair Work sets the national minimum wage at $26.44 an hour and $1,004.90 a week for a 38‑hour week. That works out to an annual salary of $52,255 (38 hours × 52 weeks). Remember, this is before tax and before your employer adds super. The super guarantee rate is 12% from 1 July 2026, but that money goes to your super fund, not your bank account.

How income tax is applied

For the 2026–27 tax year, the resident tax rates are:

• $0 – $18,200: Nil
• $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

On a $52,255 salary, your taxable income falls in the third bracket. The tax is:

• $4,020 (on the first $45,000)
• plus 30c × ($52,255 – $45,000) = 30c × $7,255 = $2,176.50
• Total gross tax = $6,196.50

The Low Income Tax Offset (LITO)

LITO reduces the tax you pay. For 2026–27 the offset is:

• Maximum $700 if your taxable income is $37,500 or less
• Then it reduces by 5c per dollar until $45,000
• From $45,001 to $66,667 it is $325 minus 1.5c per dollar over $45,000

At $52,255, your LITO is $325 – (1.5c × $7,255) = $325 – $108.83 = $216.17. So your tax after LITO is $6,196.50 – $216.17 = $5,980.33.

The Medicare levy

The Medicare levy is 2% of your taxable income. For a single person, the latest published thresholds are $28,011 (lower) and $35,013 (upper). Because $52,255 is above the upper threshold, you pay the full 2%: $1,045.10.

If you were earning between $28,011 and $35,013, you would pay only 10c per dollar over the lower threshold. Below $28,011 you pay nothing.

Your take‑home pay

Total deductions = income tax after LITO ($5,980.33) + Medicare levy ($1,045.10) = $7,025.43.

Annual take‑home = $52,255 – $7,025.43 = $45,229.57.

• Weekly: $45,229.57 ÷ 52 = $869.80
• Fortnightly: $45,229.57 ÷ 26 = $1,739.60

These are estimates. Your actual pay may vary if you have HELP/HECS debt, salary sacrifice, or the Medicare levy surcharge. The Take-home pay guide explains more.

Important notes

• Super is separate. Your employer pays 12% super on top of your wage. It does not reduce your take‑home.
• The Medicare levy surcharge applies if you do not have appropriate private hospital cover and your income is above a threshold. This guide does not include it.
• Rounding. Payroll systems may round to the nearest cent, so your actual pay slip might differ by a few cents.
• This is not a tax assessment. Use the Clearance tool for a personalised estimate.

What if you earn more or less?

The same method applies at any income. Use the tax brackets and LITO table above. For a full‑time average earner, the ABS reports weekly total earnings of $1,579.20 (all employees) and $2,083.70 (full‑time ordinary time). See the Benchmarks page for those figures.