What $40 per hour means as an annual salary in Australia
Convert $40 per hour to an annual salary in Australia and see how it compares to national, state and industry averages using the Salary Index.
A full-time worker earning $40 per hour makes about $79,040 a year, which sits at an index of roughly 73 – well below the national average of 100.
What $40 per hour means as an annual salary in Australia
If you earn $40 per hour and work full‑time, your annual salary is roughly $79,040. That figure comes from a standard 38‑hour week multiplied by 52 weeks. But how does that compare to what other Australians earn? The Salary Index uses a benchmark of 100 for full‑time adult ordinary‑time earnings, which the Australian Bureau of Statistics puts at $108,352 per year (May 2026). Your $79,040 gives an index of about 73 – meaning you earn 27% less than the national average.
State differences
Where you live makes a big difference. The states page shows that average earnings vary from Tasmania (index 88.6, annual $96,008) to the ACT (index 109.9, $119,090). Even in the lowest‑earning state, $79,040 is below the local average. In Western Australia (index 106.9, $115,825) the gap is even wider. So if you’re on $40/hr, you’re earning less than the typical full‑time worker in every state and territory.
Industry differences
Your industry matters just as much. The industries page lists indices from 72.5 in accommodation and food services to 154.7 in mining. At index 73, $40/hr is close to the accommodation and food services average (72.5) but below retail trade (75.9) and well below professional, scientific and technical services (114.7). If you work in health care and social assistance (index 97.8) or education and training (105.5), $40/hr is also below the industry norm.
How the index works
The how the index works page explains that the index is your yearly gross salary divided by the national line ($108,352) times 100. So $79,040 ÷ $108,352 × 100 = 73. This lets you compare any pay rate to the national benchmark, regardless of hours or industry.
What about awards and minimums?
The national minimum wage from 1 July 2026 is $26.44 per hour (index 48.2). At $40/hr you are well above that. Many modern awards have minimum rates below $40, so this rate could be above award for roles like retail sales, hospitality, or administration. However, some skilled trades or professional roles under awards may pay more than $40. Always check the relevant award or enterprise agreement. The Fair Work Ombudsman provides pay guides for most industries.
Superannuation and tax
Your employer must pay superannuation guarantee of 12% on top of your salary, adding about $9,485 to your total remuneration. For tax, a resident earning $79,040 in 2026‑27 falls into the 30% marginal bracket (after the tax‑free threshold). After income tax and the 2% Medicare levy, your take‑home pay would be roughly $61,000, depending on your circumstances. This ignores HELP repayments, salary sacrifice, or the Medicare levy surcharge.
Casual loading
If you are a casual employee, you typically receive a 25% loading. That would make your hourly rate $50, annualising to $98,800 (index 91). That’s much closer to the national average. Casual loading is common in awards, but not all roles include it.
Putting it together
A $40 per hour rate is a solid wage – well above the minimum and many award floors – but it sits below the national average and below most state and industry averages. To see where your pay fits, use the Salary Index to compare your rate to the national line, or explore topics for more salary comparisons. Remember that actual earnings depend on hours, overtime, penalties, and your specific award or agreement.
Questions people ask
How do I calculate annual salary from $40 per hour in Australia?
Multiply $40 by the number of hours you work each week, then by 52 weeks. For a standard full‑time week of 38 hours, that’s $40 × 38 × 52 = $79,040 per year. If you work more or fewer hours, adjust the weekly figure accordingly.
Is $40 per hour a good salary in Australia?
It depends on your industry and location. $40/hr is above the national minimum wage ($26.44) and many award rates, but it sits below the national average earnings of about $108,352 (index 100). In high‑paying states like WA (index 106.9) or the ACT (109.9), $40/hr is below the local average. In lower‑paying industries like accommodation and food services (index 72.5), it is close to or slightly above the industry average.
How does $40 per hour compare to state and industry averages?
The Salary Index shows state averages from 88.6 in Tasmania to 109.9 in the ACT. At $79,040 (index ~73), $40/hr is below every state average. For industries, retail trade averages index 75.9 (about $82,240) and accommodation and food services averages 72.5 (about $78,555). So $40/hr is slightly below retail average but slightly above accommodation average. Professional services average index 114.7 ($124,300) is much higher.