Can my salary be paid into a family trust? Understanding your minimum wage and take-home pay

Can my salary be paid into a family trust?

If you are an employee, your salary cannot be paid directly into a family trust. Under the Fair Work Act 2009 and PAYG withholding rules, employment income must be received by you, the individual who performed the work. The Australian Taxation Office treats this as personal assessable income, regardless of where the money is deposited. Once you have received and paid tax on your salary, you may transfer post-tax funds into a family trust for investment or asset protection purposes. However, the trust cannot be the direct recipient of your wages. This distinction is important when considering your pay packet and the legal minimums that apply.

The legal minimum wage floor

For employees not covered by a modern award or enterprise agreement, the national minimum wage applies. From the first full pay period on or after 1 July 2026, the adult rate is $26.44 per hour or $1,004.90 per week. Casual employees receive a 25% loading, bringing their minimum to $33.05 per hour. These figures are before tax and before the superannuation guarantee.

Award and agreement rates can be higher

Most employees are covered by a modern award or an enterprise agreement. These instruments often set higher minimum pay rates than the national minimum wage. For example, the lowest ongoing classification in a modern award cannot fall below $26.44 per hour, but many awards have rates above that. Introductory rates (limited to the first six months) are set at $25.74 per hour or $978.10 per week. Always check your specific award or agreement using the Fair Work Ombudsman’s Pay and Conditions Tool. Which minimum wage applies can help you identify the correct pay floor.

Junior, apprentice, and supported wage rates

Not every worker must receive the adult national minimum. Award-free juniors have percentage-based rates: under 16 years old receive $9.73 per hour (36.8% of the adult rate), 16-year-olds $12.51, 17-year-olds $15.29, 18-year-olds $18.06, 19-year-olds $21.82, and 20-year-olds $25.84. Apprentices and trainees have their own rates under the Miscellaneous Award. Supported wage employees may have a pro-rata rate based on their productive capacity. These lower rates are lawful but must comply with the relevant award or the Fair Work Act.

Your weekly packet: tax, Medicare, and super on top

Understanding your take-home pay starts with the gross figure. On the national minimum wage, a full-time employee working 38 ordinary hours earns $1,004.90 per week. From this, the employer must withhold PAYG tax based on the tax-free threshold and your earnings. For the 2026–27 income year, resident tax rates apply with the full tax-free threshold. Once your annualised ordinary gross exceeds $30,000, Medicare levy of 2% is estimated. For a full-time worker on the minimum wage ($52,254.80 per year), the combined tax and Medicare would be roughly $6,500, leaving a net weekly amount around $880. This is an estimate and does not include the low income tax offset, HELP repayments, or salary sacrifice arrangements.

Superannuation is on top

The superannuation guarantee requires your employer to contribute an additional 12% of your ordinary time earnings into a super fund. This is not deducted from your salary; it is paid on top. For a worker on the national minimum wage, that adds about $120.59 per week to your retirement savings. The super guarantee applies to most employees aged 18 and over, and to those under 18 who work more than 30 hours per week.

How the minimum compares to average earnings

The Australian Bureau of Statistics (ABS) reported in May 2026 that full-time adult ordinary-time earnings averaged $2,083.70 per week, and all employees (including part-time and casual) averaged $1,579.20 per week. The national minimum wage of $1,004.90 is well below these averages, reflecting that many workers are covered by awards or agreements that pay above the legal floor. If you are earning at or near the minimum, you may be entitled to a higher rate under your award. How the figures work explains the sources and calculations behind these comparisons.

Key takeaways

• Your salary must be paid to you personally, not to a family trust.
• The national minimum wage is $26.44 per hour or $1,004.90 per week from 1 July 2026.
• Awards and enterprise agreements can set higher rates; check your coverage.
• Junior, apprentice, and supported wage rates are lower but lawful.
• Superannuation is an employer contribution on top of your gross pay, currently 12%.
• Tax and Medicare reduce your take-home pay; use the ATO’s tax calculator for a precise estimate.

For more detail on which pay floor applies to you, visit Which minimum wage applies or browse our Guides for award-specific information.