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What salary to put in a mortgage calculator when you're on award wages
Understand how award wages and the national minimum wage compare to the national line, and what that means for the salary you enter into a mortgage calculator.
The national minimum wage sits at index 48.2, while award wages vary widely; the national line (index 100) is $108,352 a year.
What does 'mortgage calculator salary' mean?
When you apply for a home loan or use an online mortgage calculator, the first thing it asks is your annual income. That figure – your mortgage calculator salary – is the gross salary lenders use to estimate how much you can borrow. If you're paid under a modern award, your salary might be set by an award classification, not by individual negotiation. Understanding where your award wage sits against the national average helps you know whether your income is typical or below the line.
Awards versus the national minimum wage
Australia has two main safety nets: the national minimum wage (NMW) and modern award minimum rates. The NMW applies to employees not covered by an award. From 1 July 2026, the NMW is $26.44 per hour, or $1,004.90 per week, annualised to $52,255. On the Salary Index, that's an index of 48.2 – less than half the national line of 100.
Modern awards cover about 20.7% of employees. Award rates are generally higher than the NMW. For example, the entry-level adult rate in many awards is around $25.74 per hour, but most classifications pay more. The Fair Work Commission's 2026 Annual Wage Review increased award minima by 4.75% from 1 July 2026. That means a retail employee on Level 1 might earn about $26.95 per hour after the increase, or roughly $55,000 a year – index 51. Still below the national line, but above the NMW.
Some awards have higher rates. Health professionals under the Health Services Award saw changes from 1 October 2026, and home care disability employees under the SCHADS Award will receive an initial increase of up to 15% from 1 December 2026. These increases push some award wages closer to the national average.
How the salary index helps with mortgage calculations
The salary index compares your gross yearly income to the national full-time adult ordinary-time earnings of $108,352 (index 100). If your award wage gives you an index of 75, your income is $81,264 – about three-quarters of the national line. A mortgage calculator will use that $81,264 to estimate borrowing power.
Lenders don't use the index directly, but it's a useful benchmark. For instance, the industries page shows that Retail trade has an average index of 75.9, while Health care and social assistance is 97.8. If you work in retail, your mortgage calculator salary is likely below the national line; in health care, it's close to average.
What to include in your mortgage calculator salary
When entering your salary into a mortgage calculator, use your gross annual base salary – before tax and super. Superannuation (12% from 1 July 2026) is not counted by lenders because you can't access it until retirement. Also include regular allowances and loadings if they are guaranteed. Casual loading (e.g., 25% on top of the base rate) may be considered, but penalty rates and overtime are often excluded because they're not guaranteed.
For example, a casual retail worker on $26.95 per hour plus 25% loading earns $33.69 per hour. If they work 38 hours a week year-round, that's about $66,500 – index 61.4. But if they only work 30 hours a week, the salary drops to $52,500 – index 48.5. Mortgage calculators usually ask for full-time equivalent or actual hours, so be accurate.
State and industry differences
Your location also matters. The states page shows that the average full-time salary in New South Wales is index 101.2 ($109,658), while in Tasmania it's 88.6 ($96,008). Award wages are national, but actual earnings vary by state because of different industry mixes and cost of living. A mortgage calculator might ask for your postcode to adjust for local property prices, but the salary input is your personal income.
Tax and take-home pay
Your mortgage calculator salary is gross, but lenders also consider your ability to repay after tax. For a resident in 2026–27, tax rates are: nil on the first $18,200, 15% on income up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above. Plus a 2% Medicare levy. For someone earning $60,000 (index 55.4), the tax and Medicare take about $11,367, leaving $48,633 take-home. That's roughly $935 per week – a figure lenders use for repayment capacity.
Using the pay guides
The Fair Work Ombudsman publishes pay guides for each award, listing minimum rates, allowances, and penalty rates. These are the best source for your exact mortgage calculator salary if you're award-reliant. The Fair Work Commission's Modern Awards Pay Database also provides detailed spreadsheets updated after each wage review.
Summary
Your mortgage calculator salary depends on whether you're on the national minimum wage or an award rate. Award wages are generally higher but still often below the national line of $108,352. Use the salary index to see where you stand, check your award's pay guide for your exact rate, and enter your gross annual base income into the calculator. Remember that lenders look at stable, guaranteed income – so stick to your base rate plus regular allowances, not unpredictable overtime.
Questions people ask
What salary should I enter into a mortgage calculator if I'm paid under an award?
Enter your gross annual salary based on your award classification's minimum rate, including any loadings or allowances you regularly receive. Lenders usually ask for your before-tax income. If you're unsure, use your base rate without penalty rates or overtime, as those may not be guaranteed. You can find your award's minimum rates on the Fair Work Ombudsman pay guides or the Fair Work Commission's Modern Awards Pay Database.
How does the national minimum wage compare to award wages?
The national minimum wage (from 1 July 2026: $26.44 per hour, $52,255 per year) is the legal floor for employees not covered by an award. Award wages are generally higher and vary by industry and classification. For example, the Retail Award has a minimum rate around $25.74 per hour for an adult Level 1 employee (entry-level). Many awards have multiple pay levels, so your actual rate may be above the national minimum.
Does the salary index help me figure out what to put in a mortgage calculator?
Yes. The salary index shows where your gross annual income sits relative to the national line (index 100 = $108,352). If your index is 75, your income is 75% of the national average. Lenders use your actual dollar amount, but the index gives you a quick sense of whether your income is above or below the typical full-time worker. You can use the [how the index works](/method) page to calculate your own index.