What's minimum wage in Australia and how to compare job offers by take-home pay
The national minimum wage is $26.44 per hour or $1,004.90 per week, but your actual take-home pay depends on income tax and the Medicare levy.
Comparing job offers by what reaches your bank account
When you receive a job offer in Australia, the headline figure is often the annual salary or hourly rate. But what really matters is the amount that lands in your bank account after tax and the Medicare levy. This guide shows you how to compare offers using take-home pay, with the national minimum wage as a benchmark.
What's minimum wage in Australia?
As set by Fair Work Ombudsman from 1 July 2026, the national minimum wage is $26.44 per hour and $1,004.90 per week. For a full-time worker on 38 hours per week, that works out to about $52,255 per year. This is the legal floor for most employees. If you are comparing a job offer, always check whether the rate is above this minimum.
From gross to net: the tax and Medicare steps
Your take-home pay depends on the 2026–27 resident tax rates and the Medicare levy. Here is how the Australian Taxation Office applies them:
- Tax-free threshold: First $18,200 – no tax.
- Next bracket ($18,201–$45,000): 15c for each dollar over $18,200.
- Next bracket ($45,001–$135,000): $4,020 plus 30c per dollar over $45,000.
- Higher brackets: Up to 45c per dollar over $190,000.
You may also be eligible for the Low Income Tax Offset (LITO), which can reduce your tax by up to $700 if you earn under $37,500, phasing out by $66,667.
Medicare levy: 2% of your taxable income, but with a shade-in for low earners. The latest published single-person thresholds are $28,011 (lower) and $35,013 (upper). If you earn below $28,011, you pay no levy. Between $28,011 and $35,013, the levy is reduced by 10c per dollar over the lower threshold. Above $35,013, you pay the full 2%.
Example: minimum wage take-home
For a worker earning exactly the minimum wage of $52,255 per year:
- Tax: $4,020 + 30% of ($52,255 – $45,000) = $4,020 + $2,176.50 = $6,196.50
- LITO: At $52,255, LITO is $325 – 1.5c per dollar over $45,000 = $325 – $108.83 = $216.17 (approx). So net tax = $6,196.50 – $216.17 = $5,980.33
- Medicare levy: Full 2% of $52,255 = $1,045.10 (since above $35,013)
- Total deductions: $5,980.33 + $1,045.10 = $7,025.43
- Take-home pay: $52,255 – $7,025.43 = $45,229.57 per year, or about $1,739.60 per fortnight.
This is an estimate only. Your actual take-home may differ due to rounding, HELP/HECS, or salary packaging.
How to compare offers
When you see two job ads, one offering $60,000 and another $65,000, the difference in take-home may be smaller than you think because of progressive tax. Use our Take-home pay guide to calculate net amounts. Also consider:
- Superannuation: If the ad says 'plus super', the 12% employer contribution is on top. If 'including super', the advertised amount includes super, so your base salary is lower.
- Medicare levy surcharge: If you earn over $90,000 (single) and don't have private hospital cover, you may pay an extra 1–1.5%.
- Salary packaging: Some employers offer pre-tax benefits like cars or laptops, which reduce your taxable income.
For a full breakdown of tax and Medicare, see our Tax and Medicare page.
Using benchmarks to gauge your offer
Fair Work sets the minimum wage, but the average earnings give context. According to ABS data (May 2026, seasonally adjusted):
- All employees average weekly total earnings: $1,579.20 per week (about $82,118 per year). This includes part-time workers.
- Full-time adult ordinary time earnings: $2,083.70 per week (about $108,352 per year). Excludes overtime and employer super.
If your offer is below the all-employees average, it may still be reasonable depending on your industry and experience. Use the Benchmarks page to see more comparisons.
What about fortnightly pay?
Most Australian employers pay fortnightly. To estimate your fortnightly take-home, divide your annual net pay by 26. For the minimum wage example above, that's about $1,739.60 per fortnight. Remember that super is not deducted from this amount if your contract says 'plus super'.
Final tips
- Always ask if the salary is base or total package.
- Check whether the rate is above the minimum wage of $26.44 per hour.
- Use the ATO's tax tables or our Clearance tool for a more precise estimate.
- Remember that this guide is for resident employees only and does not include HELP/HECS repayments or the Medicare levy surcharge.
By focusing on take-home pay, you can make a fair comparison between job offers and know exactly what will reach your bank account.
Questions
How is take-home pay calculated from a job offer?
Take-home pay is your gross salary minus income tax and the Medicare levy. Superannuation is not deducted from your take-home if the offer says 'plus super'. Use the ATO tax tables for 2026–27: no tax on the first $18,200, then 15c per dollar up to $45,000, and so on. The Medicare levy is 2% of your taxable income, but you may pay less if your income is below $28,011 (single) or get a gradual reduction up to $35,013.
What is the Medicare levy and how does it affect my pay?
The Medicare levy is a 2% tax on your taxable income that funds public healthcare. For the 2026–27 tax year, the latest published single-person thresholds are $28,011 (lower) and $35,013 (upper). If you earn below $28,011, you pay no levy. Between $28,011 and $35,013, the levy is reduced by 10c per dollar over the lower threshold. Above $35,013, you pay the full 2%. This is separate from the Medicare levy surcharge for high-income earners without private hospital cover.
Does superannuation reduce my take-home pay?
Superannuation (12% from 1 July 2026) is paid by your employer on top of your salary if the job ad says 'plus super'. In that case, super does not come out of your bank account. If the offer is 'including super', the total package includes super, so your take-home will be lower because the employer deducts super from the gross amount. Always check whether the advertised rate is base salary or total package.