Average salary vs minimum wage: the weekly packet with tax, Medicare, and super on top

Average salary and the minimum wage: what you actually take home

When people ask about the "average salary" in Australia, they usually mean the typical earnings before tax. The Australian Bureau of Statistics (ABS) publishes two key figures: full-time adult ordinary-time earnings ($2,083.70 per week as of May 2026) and all employees average total earnings ($1,579.20 per week). The latter includes part-time and casual workers, so it is lower. Neither is a legal floor.

The legal minimum is set by the Fair Work Commission. From 1 July 2026, the adult national minimum wage is $26.44 per hour or $1,004.90 per week for a 38-hour week. Casual employees get a 25% loading, making the minimum casual rate $33.05 per hour. These rates apply to award-free and agreement-free national-system employees. Most private-sector workers are covered by a modern award or enterprise agreement, which can require a higher rate.

The weekly packet: tax, Medicare, and super

To understand what the average salary means for your pocket, you need to subtract tax and the Medicare levy, and remember that super is paid on top by your employer.

For the 2026-27 tax year, a resident earning the national minimum wage of $1,004.90 per week ($52,254.80 annualised) would pay roughly $5,717 in tax (using the full tax-free threshold) plus about $1,045 in Medicare levy (2% once income exceeds $30,000). That leaves a weekly after-tax amount of about $870. The employer also pays 12% super ($125.70 per week) into your super fund.

For someone earning the all-employees average of $1,579.20 per week ($82,118 annualised), the tax is about $16,174, Medicare about $1,642, leaving about $1,277 per week after tax. The employer super contribution would be about $189.50 per week.

These are rough estimates. The low-income tax offset and other adjustments are not included here. For personalised advice, consult the ATO or a tax professional.

Award rates and the minimum wage backstop

Even if you are covered by an award, the lowest classification cannot fall below the national minimum wage. From the first full pay period on or after 1 July 2026, modern award minimum wages rise by 4.75%, but the ongoing minimum classification must be at least $26.44 per hour or $1,004.90 per week. Introductory rates for the first six months are capped at $25.74 per hour or $978.10 per week.

Award-free juniors have their own percentages, ranging from 36.8% for under 16 to 97.7% for 20-year-olds. Apprentices and trainees follow the Miscellaneous Award, not the junior scale.

How the average salary compares to the minimum

The national minimum wage is about 64% of the all-employees average total earnings. But many workers earn more than the minimum. The full-time ordinary-time average is more than double the minimum. This gap reflects skill levels, industry, and bargaining power.

If you are negotiating a salary, remember that the minimum is only a floor. Your award or agreement may set a higher rate. The ABS averages give a sense of the market, but they are not a guarantee.

For more details, see Which minimum wage applies and Rate tables. You can also explore Guides on how pay rates work.

Superannuation guarantee on top

All figures discussed are before super. The super guarantee is 12% of ordinary time earnings, paid by the employer on top of your salary. So the total employment cost is higher than the quoted wage. For a minimum wage worker, the employer pays $1,004.90 in wages plus $120.59 in super (12% of ordinary time earnings). For the average earner, the super adds about $189.50 per week.

This site provides orientation only. It is not a pay determination or legal advice. Always check your specific award or agreement with the Fair Work Ombudsman.