Minimum Wage in Australia: State and Industry Differences

What is the Minimum Wage?

The national minimum wage is the legal floor for pay in Australia. From 1 July 2026, it is $26.44 per hour, or $1004.90 per week, annualising to $52,255. On the Salary Index, where 100 equals full-time adult ordinary-time earnings of $108,352, the minimum wage sits at 48.2. That means a full-time worker on the minimum earns less than half the national benchmark.

This rate applies to employees not covered by a modern award or enterprise agreement. Most workers, however, are covered by awards that set higher minimum rates. For example, the entry-level award floor is $25.74 per hour, slightly below the national minimum wage, but award rates typically rise above that. The national minimum wage increased by 4.75% from 1 July 2026, consistent with the annual wage review by the Fair Work Ombudsman.

State Differences in the Minimum Wage

While the national minimum wage is uniform across Australia, its purchasing power and relativity to local average earnings vary significantly by state. The states page shows how each state’s average earnings compare to the national line. For instance:

• Western Australia has an index of 106.9, meaning average full-time earnings are $115,825. The minimum wage of $52,255 is only 45% of that state average.
• Tasmania has an index of 88.6, with average earnings of $96,008. Here the minimum wage represents about 54% of the state average.
• Australian Capital Territory has the highest index at 109.9 ($119,090), so the minimum wage is an even smaller fraction (44%) of the local average.
• South Australia (index 94.6, $102,450) and Northern Territory (index 95.2, $103,173) are closer to the national line, but the minimum wage still sits well below.

These differences matter for cost of living and relative bargaining power. In states with higher average earnings, the minimum wage feels lower compared to typical incomes. Conversely, in lower-earning states like Tasmania, the minimum wage is closer to the median, though still a floor.

Industry Differences and the Minimum Wage

Industry averages also vary widely, and the minimum wage is a benchmark for low-paid sectors. The industries page shows index values for major industries:

• Retail trade has an index of 75.9, meaning average earnings of about $82,200. The minimum wage is 63% of that industry average.
• Accommodation and food services has the lowest industry index at 72.5, with average earnings around $78,500. Here the minimum wage is 66% of the industry average.
• Mining has the highest index at 154.7, with average earnings of $167,600. The minimum wage is just 31% of that.
• Professional, scientific and technical services (index 114.7, $124,300) and Education and training (index 105.5, $114,300) also far exceed the minimum.
• Health care and social assistance (index 97.8, $106,000) is close to the national line, but the minimum wage is still only about half.

Many workers in retail and hospitality are covered by modern awards that set rates above the national minimum wage. For example, a casual worker in hospitality receives a casual loading of 25%, making the effective minimum $33.05 per hour. Award classifications can push pay higher depending on skill level and experience.

How the Salary Index Relates to the Minimum Wage

The Salary Index is a simple tool: your yearly gross pay divided by the national line ($108,352) times 100. For the minimum wage, that’s 48.2. This index helps you see where any pay figure sits relative to the national average. How the index works explains the calculation in more detail.

When comparing state and industry averages, the index makes it clear that the minimum wage is a floor, not a target. Most full-time workers earn well above it. For example, a retail worker on an award rate might earn $55,000 (index 50.8), still below the national line but above the minimum. A nurse on $85,000 (index 78.5) is closer to the average.

Practical Considerations

• Superannuation: From 1 July 2026, the super guarantee is 12% on top of wages, up to a maximum contribution base of $270,830. So a minimum wage earner gets an extra $6,270 in super per year.
• Tax: For 2026–27, a resident on the minimum wage ($52,255) pays about $6,935 in income tax (using the tax-free threshold and 30% bracket) plus a 2% Medicare levy, leaving take-home pay around $44,800. This ignores HELP repayments or salary sacrifice.
• Junior rates: Employees under 21 may be paid a percentage of the adult minimum wage, as shown in the FAQs. Modern awards can set different junior rates, so check the relevant award.

Conclusion

The national minimum wage is a critical safety net, but its real impact varies by state and industry. In high-earning states like WA and ACT, it covers a smaller share of local incomes, while in Tasmania it is relatively closer. In low-paying industries like retail and hospitality, the minimum wage is a larger proportion of the industry average, but award rates often lift pay above the floor. Understanding these differences helps workers and employers benchmark pay fairly. For more detailed comparisons, explore the pay guides and topics on Salary Index.