How does the ATO salary calculator work with the national minimum wage?

The ATO salary calculator (available on the Australian Taxation Office website) lets you enter your gross weekly or annual pay to estimate tax withheld, Medicare levy, and any offsets. For the national minimum wage of $1,004.90 per week, the calculator will show your estimated take-home pay after tax and Medicare, assuming you are a resident with the full tax-free threshold. Remember that superannuation (12% on top) is not included in the calculator’s output—it is paid by your employer into your super fund.

Do I pay tax on my superannuation guarantee?

No, the 12% super guarantee paid by your employer on top of your ordinary time earnings is not included in your assessable income for tax purposes. It goes directly into your super fund, where it is taxed at a concessional rate of 15% (or 30% for high-income earners). The ATO salary calculator only deals with your salary or wages, not super contributions.

ATO Salary Calculator: Estimate Your Take-Home Pay from the National Minimum Wage

Q: What is the difference between the national minimum wage and a modern award rate?

The national minimum wage is the legal floor for award-free and agreement-free employees. Modern awards set higher minimum rates for specific industries or occupations. From 1 July 2026, award minimum wages rise by 4.75%, but the lowest ongoing classification cannot fall below the national minimum of $26.44/h. Introductory rates for the first six months are capped at $25.74/h. Always check your award via the Fair Work Ombudsman to see if you are entitled to more than the national minimum.

The national minimum wage from 1 July 2026 is $26.44 per hour or $1,004.90 per week, with 12% super on top; use the ATO salary calculator to estimate tax and Medicare.

Using the ATO Salary Calculator to Understand Your Pay Packet

If you are paid the national minimum wage, the ATO salary calculator is a handy tool to see how much of your gross pay ends up in your pocket after tax and the Medicare levy. This guide explains the legal minimum, how it compares with award rates and average earnings, and what your employer pays on top in superannuation.

The Legal Minimum: National Minimum Wage

From 1 July 2026, the adult national minimum wage is $26.44 per hour or $1,004.90 per week for a 38‑hour week. Casual employees receive a 25% loading, making their minimum $33.05 per hour. These rates apply to national‑system employees who are not covered by a modern award or enterprise agreement. The Fair Work Commission sets the national minimum wage each year; the Fair Work Ombudsman explains and enforces it.

Important: not every worker must receive $26.44 an hour. Juniors, apprentices, trainees, and employees on introductory award rates can be paid less. For award‑free juniors, percentages of the adult rate apply (e.g., under 16: $9.73/h, 16: $12.51/h, 17: $15.29/h, 18: $18.06/h, 19: $21.82/h, 20: $25.84/h). Apprentice and trainee rates for award‑free employees follow the Miscellaneous Award.

Award Rates and Enterprise Agreements

A modern award or enterprise agreement can require a higher rate than the national minimum. From the first full pay period on or after 1 July 2026, modern award minimum wages rise by 4.75%, but the lowest ongoing classification cannot sit under $26.44/h. Introductory rates (first six months) are capped at $25.74/h or $978.10 per week. If you are unsure which pay floor applies, see our guide on Which minimum wage applies.

Superannuation: An Employer Payment on Top

Your employer must pay superannuation guarantee of 12% on top of your ordinary time earnings. For a full‑time worker on the national minimum wage, that is an extra $120.59 per week paid into your super fund. The ATO salary calculator does not include super because it is not part of your taxable income. You can use the calculator to estimate your take‑home pay from your gross salary, then add the super contribution separately.

How the National Minimum Compares with Average Earnings

The ABS May 2026 survey shows full‑time adult ordinary‑time earnings of $2,083.70 per week—more than double the national minimum. The all‑employees average total earnings figure is $1,579.20 per week. These averages include many workers on award or enterprise agreement rates above the minimum. For a realistic picture of your own situation, enter your gross pay into the ATO salary calculator.

Tax and Medicare for 2026‑27

For the 2026‑27 tax year, resident rates with the full tax‑free threshold apply. Once annualised ordinary gross pay reaches $30,000, the Medicare levy is estimated at 2%. The ATO salary calculator uses the real low‑income reduction and shade‑in thresholds. This model leaves out the low income tax offset, HELP repayments, salary sacrifice, and the Medicare levy surcharge. Always check the ATO website for your personal circumstances.

When an Award or Agreement Sets a Higher Rate

If you are covered by a modern award or enterprise agreement, your minimum wage is the rate specified in that instrument, which is almost always higher than the national minimum. For example, many awards have classifications that start above $26.44/h. Your employer cannot pay you less than the award rate, even if it is above the national minimum. See our Rate tables for examples of common award classifications.

Summary

The ATO salary calculator is a useful tool to estimate your weekly or annual take‑home pay from the national minimum wage. Remember that the legal floor is $26.44/h ($1,004.90/week) with 12% super on top, but many workers are entitled to more under an award or agreement. Check your coverage with the Fair Work Ombudsman and use the calculator to plan your budget.

For the published floors, see the rate tables and how the figures work.