What is the National Minimum Wage from 1 July 2026?

The National Minimum Wage is $26.44 per hour for adults, or $1004.90 per week for a 38-hour week. Casual employees receive $33.05 per hour, which includes the 25% casual loading. These rates are set by the Fair Work Commission and apply to award-free employees. For award-covered employees, minimum rates may be higher.

What are the 2026–27 tax rates for residents?

For 2026–27, the tax-free threshold is $18,200. Then: 15% on income from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; and 45% above $190,000. The Medicare levy is generally 2% of taxable income. These rates apply to residents claiming the full tax-free threshold.

How to Use an Invoice Template for Salary: Converting Hourly to Annual Pay in Australia

For a 38-hour week and 52-week year, annual gross pay equals hourly rate × 38 × 52.

Converting Hourly to Annual Pay: A Practical Guide

Whether you are an employee negotiating a salary or a contractor setting your rate, understanding how to convert an hourly rate to an annual figure is essential. In Australia, the standard full-time working week is 38 hours, and the typical year is 52 weeks. This guide explains the conversion, covers the National Minimum Wage, award rates, casual loading, tax, and super, and shows how an invoice template for salary can help you document your pay.

The Basic Formula

Annual gross pay = hourly rate × hours per week × 52.

For a full-time employee working 38 hours each week, the formula becomes:

Annual gross = hourly rate × 38 × 52.

For example, if your hourly rate is $40, your annual gross pay is $40 × 38 × 52 = $79,040.

This calculation assumes the same rate every week, no unpaid overtime, no penalty rates, no allowances, and no salary sacrifice. It is a starting point for estimating your total remuneration.

The Fortnightly Pay Period

Many Australian employees are paid fortnightly. To find your fortnightly gross pay, multiply your weekly pay by 2. Weekly pay is hourly rate × 38. So fortnightly = hourly rate × 38 × 2.

Using the same $40 per hour example: weekly = $1,520; fortnightly = $3,040.

Knowing your fortnightly amount helps with budgeting and comparing salary offers.

Minimum Wage and Award Rates

The Fair Work Ombudsman provides pay guides that set minimum pay rates for each award. From 1 July 2026, the National Minimum Wage is $26.44 per hour for adults, which equates to $1,004.90 per week for 38 hours. Casual employees receive a 25% loading, making the minimum casual rate $33.05 per hour. These rates are from the Fair Work Ombudsman’s pay guides.

If you are covered by an award, your minimum rate may be higher than the National Minimum Wage. Always check the relevant award using the Fair Work Ombudsman’s Pay and Conditions Tool. Award rates also include penalty rates for weekends, evenings, and overtime, which are not reflected in the simple hourly-to-annual conversion.

Casual Loading and Superannuation

Casual employees are paid a 25% loading on top of the base hourly rate to compensate for not receiving paid leave. When using the invoice template for salary, ensure you include the loading if applicable. The template should clearly separate the base rate and the loading.

Superannuation guarantee is 12% of your ordinary earnings, paid by your employer on top of your gross salary. For 2026–27, the maximum contribution base is $270,830. If your annual salary exceeds that, super is capped at 12% of $270,830. Super is not deducted from your pay; it is an additional cost for the employer. When you see a salary offer, remember that super is paid on top. For more details, see our guide on super and packaging.

Tax and Take-Home Pay

Your annual gross pay is not what you take home. Tax is withheld by your employer using the 2026–27 resident tax rates:

Nil on the first $18,200
15% on income from $18,201 to $45,000
30% from $45,001 to $135,000
37% from $135,001 to $190,000
45% above $190,000

Plus the Medicare levy of 2% (based on 2025–26 single reduction thresholds, as 2026–27 thresholds were not confirmed).

For example, on a gross salary of $79,040, tax would be approximately $16,267 (including Medicare), leaving a take-home pay of about $62,773 per year. Use our take-home pay calculator for a more precise estimate.

Using an Invoice Template for Salary

An invoice template for salary is a useful tool for contractors, freelancers, or employees who need to document their pay for tax or super purposes. The template typically includes:

Your hourly rate
Hours worked (e.g., 38 per week)
Total weekly or fortnightly amount
Any casual loading
Superannuation (if you are a contractor invoicing for super separately)

By using a template, you ensure consistency and clarity. It also helps when comparing a salary offer to your current hourly rate. For example, if you are offered an annual salary of $80,000, you can reverse the formula: hourly rate = $80,000 ÷ (38 × 52) ≈ $40.49 per hour. Then compare that to your current rate, factoring in leave entitlements and super.

Important Considerations

The conversion assumes a 38-hour week. If you work fewer or more hours, adjust accordingly.
Award-covered employees may have different ordinary hours. Check your award.
Annualised wage arrangements under some awards allow a fixed salary that covers penalties and allowances. The Fair Work Ombudsman explains that such arrangements must be reviewed annually.
The National Minimum Wage and award rates change each year on 1 July. Always use current rates.

Summary

Converting hourly to annual pay is straightforward: multiply your hourly rate by 38 and then by 52. Remember that this is gross pay before tax and super. Use an invoice template for salary to document your calculations, and always check the Fair Work Ombudsman’s pay guides for your minimum entitlements. For more tools, see our reference tables and hourly conversion guide.

This estimate is not a determination of your pay or tax. For personalised advice, consult a qualified accountant or the Australian Taxation Office.