How do I calculate my salary after tax from an hourly or weekly rate?

Start with your gross pay. For a full-time worker on the national minimum wage, weekly gross is $1,004.90. Annualise that by multiplying by 52 weeks ($52,254.80). Apply the 2026-27 resident tax rates with the full tax-free threshold ($18,200) and the Medicare levy of 2% once annualised ordinary gross exceeds $30,000. The low-income tax offset and other adjustments are not included in this simple model. For a precise figure, use the ATO's tax calculator or consult a tax professional.

Does the national minimum wage apply to everyone?

No. The Fair Work Commission sets the national minimum wage, but it only applies to award-free and agreement-free national-system employees. Most private-sector workers are covered by a modern award or enterprise agreement, which can set higher rates. Juniors, apprentices, trainees, and supported employees may receive lower rates. State public sector and local government employees in some states may be covered by state awards. Always check which instrument applies to you.

Is superannuation part of my salary after tax?

No. Superannuation is an employer payment on top of your ordinary time earnings. The super guarantee rate is 12% from 1 July 2026. It is not included in your salary or wages for tax purposes until you withdraw it. When comparing your salary after tax, consider only your gross pay before super. Your take-home pay is after tax and before any salary sacrifice arrangements.

Salary After Tax: How to Compare Your Take-Home Pay with Australia's Minimum Rates

The national minimum wage from 1 July 2026 is $26.44 per hour or $1,004.90 per week, but your salary after tax depends on your tax situation and whether an award or agreement applies.

Understanding Your Salary After Tax

When you look at your pay slip, the number that matters most is often your salary after tax – the amount that lands in your bank account. But to know whether that figure is fair, you need to compare it to Australia's legal pay floors. This guide helps you do that using the latest figures from the Fair Work Commission and the Australian Bureau of Statistics (ABS).

The Legal Minimum: National Minimum Wage

The Fair Work Commission sets the national minimum wage each year. From 1 July 2026, the adult rate is $26.44 per hour or $1,004.90 per week for a 38-hour week. Casual employees receive a 25% loading, making the casual rate $33.05 per hour. This is the absolute floor for award-free and agreement-free employees in the national system. If you are covered by a modern award or enterprise agreement, your minimum rate is likely higher.

Award Rates and Agreements

Most Australian workers are covered by a modern award. Awards set minimum wages for specific industries and occupations. From the first full pay period on or after 1 July 2026, award minimum wages rise by 4.75%, but the lowest ongoing classification cannot fall below the national minimum of $26.44 per hour. An introductory rate (first 6 months) is capped at $25.74 per hour or $978.10 per week. Enterprise agreements can also set higher rates. Always check your award or agreement before assuming the national minimum applies.

Junior, Apprentice, and Trainee Rates

If you are under 21 and award-free, junior percentage rates apply. For example, a 16-year-old receives 47.3% of the adult rate: $12.51 per hour (casual $15.64). Apprentices and trainees follow the Miscellaneous Award rates, not the junior percentages. These lower rates are legal, but your employer must pay at least the correct percentage for your age or training stage.

Average Earnings from the ABS

The ABS May 2026 survey reports full-time adult ordinary-time earnings of $2,083.70 per week and all employees average total earnings of $1,579.20 per week. These are before tax. They give you a benchmark for what other workers earn, but they are not a legal requirement. Your salary after tax will be lower than these gross figures.

How Tax Affects Your Salary After Tax

To estimate your salary after tax, start with your gross weekly or annual pay. For 2026-27, resident tax rates apply with the full tax-free threshold ($18,200). Medicare levy of 2% applies once your annualised ordinary gross exceeds $30,000. The low-income tax offset and other adjustments (like HELP repayments or salary sacrifice) are not included in this simple model. For example, a full-time worker on the national minimum wage earning $52,254.80 annually would pay roughly $6,000–$7,000 in tax and Medicare, leaving a take-home pay of around $45,000–$46,000 per year. Use the ATO's online calculator for a precise figure.

Practical Check: Compare Your Rate

To see if your salary after tax is fair, follow these steps:

Find your gross hourly or weekly rate from your pay slip.
Check if you are covered by a modern award or enterprise agreement. Use the Rate tables to see minimum award rates.
If you are award-free, compare your gross rate to the national minimum wage ($26.44/h or $1,004.90/wk).
Estimate your salary after tax using the ATO's tax calculator or the simple method above.
Remember that superannuation (12% on top) is not part of your take-home pay.

If your gross rate is below the legal minimum for your classification, you may be underpaid. Contact the Fair Work Ombudsman for advice. For more guidance, see our Guides on understanding pay slips and entitlements.

Important Notes

The figures on this site are for orientation only. They are not a pay determination or legal advice.
State system employees (some public sector and WA sole traders) may have different minimums.
Always check the actual award or agreement that applies to you. The national minimum is a backstop, not a target.