Understanding aged care salary packaging
Salary packaging is a common benefit in the aged care sector, especially for employees of not-for-profit providers. It allows you to sacrifice part of your pre-tax salary to pay for eligible expenses, such as a car lease, superannuation, or living costs. The main advantage is that the packaged amount is not subject to income tax, so your take-home pay can be higher than the cash salary alone would suggest.
For aged care workers, the most relevant packaging is the fringe benefits tax (FBT) exemption for not-for-profit employers. You can package up to $15,900 a year in tax-free benefits, plus an additional $2,650 for meal entertainment. This can significantly reduce your taxable income, potentially moving you into a lower tax bracket. However, salary packaging does not affect the gross salary used for superannuation guarantee calculations or for comparison against the national average.
How aged care pay compares to the national full-time average
The national full-time adult ordinary-time average, as measured by the ABS Average Weekly Earnings for May 2026, is $2,083.70 a week, or about $108,352 a year. This is the line used on this site. The full-time median is about $90,532, and the all-employees median is about $74,100.
Aged care salaries vary widely by role. A personal care worker under the Aged Care Award might earn around $27–$30 an hour, which equates to roughly $53,000–$59,000 a year for a 38-hour week. That is well below the national full-time average. A registered nurse in aged care can earn $35–$45 an hour, or $69,000–$89,000 a year, still below the average but closer to the median. Managers and specialists may earn above the average.
The precise average for aged care workers is not published in the sources used here. The ABS publishes industry averages, but the on-site notes do not include them. For a more detailed breakdown, see the industry medians page or job medians page.
Reading your pay as a year, week, and hour
To see where your pay sits, you can convert your annual salary to weekly and hourly figures using a 38-hour week. For example, if your cash salary is $60,000 a year, that is about $1,153.85 a week and $30.36 an hour. Compare that to the national full-time average of $2,083.70 a week. Your salary is about 45% of the average.
But salary packaging changes the picture. If you package $15,900 tax-free, your taxable income drops to $44,100, but your take-home pay is higher than someone earning $44,100 without packaging. The effective hourly rate, after tax savings, can be higher. However, the site compares gross salary before tax, so packaging does not change the line on the chart. To see how your salary stacks up, place your salary on the line.
State comparisons
Aged care wages also vary by state. The state full-time averages range from $96,008 in Tasmania to $119,090 in the ACT. If you work in a state with a higher average, your salary may feel further behind. For example, a personal care worker earning $55,000 in New South Wales (average $109,658) is at about 50% of the state average. In Tasmania, the same salary is about 57% of the state average. See the states and territories page for more.
Tax considerations
Salary packaging reduces your taxable income, which can lower the tax you pay. For the 2026–27 year, the tax rates are: nil up to $18,200; 15% from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; and 45% above that. The Medicare levy is 2% (before reductions). By packaging $15,900, a worker earning $60,000 could reduce their taxable income to $44,100, moving from the 30% bracket to the 15% bracket for that portion, saving about $2,385 in tax plus Medicare. This effectively increases take-home pay without raising the gross salary.
Minimum wage and awards
The national minimum wage from 1 July 2026 is $26.44 an hour, $1,004.90 a week, or about $52,255 a year on 38 hours. Most aged care workers are covered by the Aged Care Award, which has higher minimum rates. The award minimums rose by 4.75% from 1 July 2026. For example, a personal care worker at level 2 (the most common classification) earns at least $27.50–$28.50 an hour, depending on experience. These are minimums; many employers pay above award.
Where to find more
This site uses the ABS Average Weekly Earnings for the national line, ABS Employee Earnings for medians, and Fair Work for minimums. For a deeper look at how salaries are set, see how the figures are set. For guides on understanding your pay, visit the guides page.
Remember: salary packaging is a valuable tool in aged care, but it does not change the gross salary used for comparison. Your cash salary is what appears on the line. To see the effect of packaging on your take-home pay, use the tax calculator on the about this site page.