Australian Minimum Wage: How It Compares Across States and Industries

Australian Minimum Wage: A National Safety Net

The australian minimum wage is the legal floor for pay in Australia. From 1 July 2026, it is $26.44 per hour, $1,004.90 per week, or $52,255 per year before tax. On the Salary Index, where 100 equals full-time adult ordinary-time earnings ($108,352), the minimum wage sits at an index of 48.2. That means a full-time worker on the minimum earns about half the national average. This gap is by design: the minimum wage is a safety net, not a typical wage.

How the Index Works

The index compares yearly gross pay to the national line. For the minimum wage: $52,255 ÷ $108,352 × 100 = 48.2. Every dollar you earn moves your personal index up or down. The national line itself is based on the Australian Bureau of Statistics’ Average Weekly Earnings for full-time adults.

State Differences: Where You Live Matters

While the minimum wage is the same everywhere, average earnings vary by state. These averages reflect the mix of industries, cost of living, and local labour markets. Here’s how each state’s average index compares to the minimum wage’s 48.2:

• Australian Capital Territory: index 109.9 ($119,090) – the highest average, driven by public service and professional roles.
• Western Australia: index 106.9 ($115,825) – boosted by mining and resources.
• New South Wales: index 101.2 ($109,658) – close to the national line.
• Victoria: index 98.0 ($106,137) – slightly below national average.
• Queensland: index 97.9 ($106,064) – similar to Victoria.
• Northern Territory: index 95.2 ($103,173) – below average, partly due to remote work patterns.
• South Australia: index 94.6 ($102,450) – below the national line.
• Tasmania: index 88.6 ($96,008) – the lowest state average.

For a worker on the minimum wage, moving from Tasmania to the ACT doesn’t change your legal pay, but the cost of living and typical wages around you are very different. Check the states page for more detail.

Industry Differences: Your Sector Shapes Your Pay

Industry is a bigger factor than state for most workers. The minimum wage applies across all industries, but award rates and enterprise agreements often set higher floors. Here are selected industry indices from the reference:

• Mining: index 154.7 – more than three times the minimum wage index.
• Professional, scientific and technical: index 114.7 – well above average.
• Education and training: index 105.5 – slightly above the national line.
• Health care and social assistance: index 97.8 – just below average.
• Retail trade: index 75.9 – above the minimum but still below the national line.
• Accommodation and food services: index 72.5 – the lowest of the selected industries, but still 50% higher than the minimum wage index.

A retail worker on the minimum wage is closer to their industry average than a miner on the minimum wage would be. Most workers in mining earn far more than the floor. For a deeper look, visit the industries page.

Awards, Junior Rates, and Casual Loading

The national minimum wage is just one part of the system. Most employees are covered by a modern award, which sets minimum pay rates for their occupation or industry. Award rates are generally higher than the national minimum. From 1 July 2026, award minima rose by 4.75%, and the entry-level award floor is $25.74 per hour – close to the national minimum.

Junior workers (under 21) have their own minimum rates, calculated as a percentage of the adult rate. For example, a 16-year-old earns $12.51 per hour, and a 20-year-old earns $25.83 per hour. These rates are set by the National Minimum Wage Order, but awards can specify different junior percentages.

Casual employees get a 25% loading on the minimum wage, making it $33.05 per hour. This compensates for not receiving paid leave. Superannuation is 12% from 1 July 2026, and the maximum contribution base is $270,830.

Tax and Take-Home Pay

For a resident earning the minimum wage of $52,255 in 2026–27, tax is calculated with the tax-free threshold ($0–$18,200 tax-free). The tax on $52,255 is:

• $0 on first $18,200
• 15% on $18,201–$45,000 = $4,020
• 30% on $45,001–$52,255 = $2,176.50
• Total tax = $6,196.50
• Plus Medicare levy (2%) = $1,045.10
• Total deductions = $7,241.60
• Take-home pay ≈ $45,013 per year, or about $865 per week.

This is a rough estimate ignoring HELP repayments, salary sacrifice, or the Medicare levy surcharge. For more on how pay is measured, see how the index works.

The Bottom Line

The australian minimum wage is a floor, not a target. Most workers earn above it, especially in high-paying states like WA and industries like mining. But for those on the minimum, the index of 48.2 shows how far they are from the national average. Understanding state and industry differences helps you see where your pay sits – and whether you might be entitled to more under an award or agreement. Browse topics for more guides on pay rates, awards, and super.