Minimum wage Australia 2026: $26.44 an hour, after tax

The Fair Work Commission's Expert Panel announced the Annual Wage Review 2025-26 decision on 2 June 2026. The National Minimum Wage Order 2026 that came out of it sets:

• $1,004.90 per week, calculated on a week of 38 ordinary hours
• $26.44 per hour
• In force from the first full pay period starting on or after 1 July 2026

The previous rate, in force until 30 June 2026, was $948.00 a week or $24.95 an hour. The new one is $56.90 a week more, an increase of 6.0%, or $1.49 an hour.

Why more than the award increase? The Commission increased modern award wages by 4.75%, but it also decided to phase out the lowest ongoing award level (C13) in three stages, starting this year. The national minimum wage is aligned to that C13 rate, so it went up by more than the general award increase.

This is the part most articles skip, and it matters for knowing what you should actually be paid.

The national minimum wage only applies to employees who aren't covered by a modern award or an enterprise agreement. In its decision, the Commission itself notes that only a negligible share of the workforce is paid at that rate. Most low-paid workers are covered by an award instead: about 21.1% of all employees, almost 2.8 million people, are paid at an award minimum rate, mostly in accommodation and food, health care and social assistance, retail and administrative services.

For award workers, what changed on 1 July 2026 was:

• Award rates went up 4.75%.
• The lowest award rate for ongoing work is now $1,004.90 a week or $26.44 an hour, the same as the national minimum wage.
• The lowest entry-level rate, which can only apply for the first six months or less of a job, is $978.10 a week or $25.74 an hour.

So if you're covered by an award, your minimum is whatever your award and classification say, which is often above $26.44. The Fair Work Ombudsman is the place to look up the exact rate for your award and level.

Casual employees

Casuals don't get paid leave, so they receive a loading on top of the base rate. Under the National Minimum Wage Order, the casual loading for award and agreement-free employees is 25%, which puts the minimum casual rate at $33.05 an hour ($26.44 × 1.25). If you're covered by an award, your award sets the casual loading.

Junior rates

Employees under 21 who aren't covered by an award or agreement receive a percentage of the national minimum wage, according to the Order:

• Under 16: 36.8%, about $9.73 an hour
• 16 years: 47.3%, about $12.51 an hour
• 17 years: 57.8%, about $15.28 an hour
• 18 years: 68.3%, about $18.06 an hour
• 19 years: 82.5%, about $21.81 an hour
• 20 years: 97.7%, about $25.83 an hour

The hourly amounts are our calculation from $26.44; the Order sets the percentages. Apprentices, trainees and employees with a disability that affects their productivity have their own special rates. Awards also have their own junior tables, so if you're covered by one, check it rather than this list.

Your employer must also pay superannuation into your fund, on top of your wage. The ATO lists the super guarantee at 12% for 2026-27, the same as in 2025-26.

On a full-time national minimum wage, that's about $120.59 a week, or $6,270.58 a year, going into your super. It doesn't reach your bank account, but it's part of what you earn.

There's also a change in how it's paid: with Payday Super, from 1 July 2026 employers have to pay super for each payday instead of quarterly. If your payslip shows super but your fund doesn't, the gap is now much easier to spot.

Here's the full calculation for someone on the national minimum wage, full time for the whole 2026-27 income year, single, an Australian resident for tax purposes claiming the tax-free threshold, with no HELP debt or other deductions.

Gross pay: $1,004.90 × 52 weeks = $52,254.80

Income tax. The ATO resident tax rates for 2026-27 are:

• $0 to $18,200: nil
• $18,201 to $45,000: 15c for each $1 over $18,200
• $45,001 to $135,000: $4,020 plus 30c for each $1 over $45,000
• $135,001 to $190,000: $31,020 plus 37c for each $1 over $135,000
• $190,001 and over: $51,370 plus 45c for each $1 over $190,000

Note the first bracket dropped from 16% in 2025-26 to 15% in 2026-27.

For $52,254.80: $4,020 + 30% × $7,254.80 = $6,196.44.

Low income tax offset. The ATO's LITO rules give $325 minus 1.5c for every $1 above $45,000 for incomes between $45,001 and $66,667: $325 − $108.82 = $216.18. Tax after the offset: $5,980.26.

Medicare levy. 2% of taxable income: $1,045.10. At this income the full levy applies; the low-income reduction for singles stops at $35,013 (2025-26 threshold, the latest the ATO lists).

Result:

• Total tax and Medicare levy: $7,025.36, about 13.4% of gross pay
• Take-home pay: $45,229.44 a year
• That's about $869.80 a week, or $3,769.12 a month

The tax withheld from each pay can differ a little from this, because PAYG withholding uses its own tables; the annual figure is what you end up with once your tax return is assessed.

With about $870 a week to cover everything, the margin for error is small. A few habits that help:

1. 1. Plan from take-home pay. Use the figure that lands in your account, not the $26.44 or the $1,004.90. If you're casual and your hours change, plan on a quiet week, not a good one.
2. 2. Pay fixed costs first. Rent, phone, transport, insurance and any debt repayments. What's left is your real budget for food and everything else.
3. 3. Use a simple split as a guide. The 50/30/20 rule divides income into needs, wants and savings. On a minimum wage, needs often take more than half, and that's normal: adjust the split, don't abandon the idea.
4. 4. Track weekly. Most Australian workers are paid weekly or fortnightly, so a weekly spending limit matches how money actually arrives.
5. 5. Build a cushion in stages. Even $20 or $30 a week matters. A first goal of $500 handles many small surprises, and the emergency fund guide shows how to take it from there.
6. 6. Check your super. It's yours. Make sure the 12% is actually arriving, and that you don't have several funds charging fees.

If you'd like a place to do this, personal budgeting is free in Neto, an iPhone and Android app that works without connecting your bank: you record your income and spending yourself, set weekly or monthly limits per category, and get a heads-up at 80% and 100%. You can also set up a savings goal for that first $500.

From 1 July 2026, the national minimum wage in Australia is $26.44 an hour or $1,004.90 a week, and $33.05 an hour for casuals. Full time, that's $52,254.80 a year before tax and about $45,229 after income tax and the Medicare levy, around $870 a week, with 12% super paid on top. Most low-paid workers are on award rates, though, which rose 4.75% and are often higher than the national minimum, so check your award first.

Sources: Fair Work Commission, Annual Wage Review 2025-26 decision announcement and full decision of 2 June 2026 (rates, award increase, previous rate); National Minimum Wage Order 2026 (casual loading, junior percentages); FWC, the national minimum wage; ATO, resident tax rates 2026-27; ATO, low income tax offset; ATO, Medicare levy reduction for low-income earners; ATO, super guarantee. Figures checked on 2 October 2026.