Understanding the Average Salary in Australia
When Australians ask about the "average salary in Australia," they are usually referring to the national full-time adult ordinary-time earnings. According to the Australian Bureau of Statistics (ABS) Average Weekly Earnings report for May 2026, that figure is $2,083.70 per week, or about $108,352 per year before tax. This is the benchmark used on this site to place a salary on the line and see how your own pay compares.
But the average is only one part of the picture. The ABS also publishes median earnings, which give a better sense of what a typical worker earns. The full-time median is about $90,532 per year, and the all-employees median (including part-time and casual) is about $74,100 (ABS Employee Earnings, August 2025). The average is higher than the median because a relatively small number of very high earners pull the average up.
What a Resident Takes Home on the Average Salary
To understand what the average salary means for your pocket, it helps to sketch a take-home pay estimate. For the 2026–27 financial year, the resident tax rates are:
- Nil on the first $18,200
- 15% on income from $18,201 to $45,000
- 30% on income from $45,001 to $135,000
- 37% on income from $135,001 to $190,000
- 45% on income above $190,000
Plus the Medicare levy of 2% (before any reductions or surcharges).
For a single resident earning exactly the average of $108,352, the tax calculation is:
- Tax on first $18,200: $0
- Tax on $18,201 to $45,000 ($26,800): 15% = $4,020
- Tax on $45,001 to $108,352 ($63,352): 30% = $19,005.60
- Total tax before Medicare: $23,025.60
- Medicare levy (2% of $108,352): $2,167.04
- Total tax and Medicare: $25,192.64
That leaves a take-home amount of about $83,159 per year, or roughly $1,599 per week. This is a simplified estimate; individual circumstances such as tax offsets, deductions, or family situation can change the outcome. The point is that the average salary, while a useful benchmark, does not directly translate to a fixed take-home figure.
How the Average Varies by State and Territory
The national average masks significant differences across Australia. The ABS data for May 2026 shows state full-time averages ranging from about $96,008 in Tasmania to $119,090 in the Australian Capital Territory. Western Australia also sits above the national average at $115,825, driven by the mining and resources sector. New South Wales ($109,658) and Victoria ($106,137) are close to the national figure, while Queensland ($106,064) and South Australia ($102,450) are slightly below. The Northern Territory ($103,173) is also below the national average.
These differences matter when you compare states and territories because the cost of living and job opportunities vary. A salary that feels comfortable in one state might be stretched in another.
The Minimum Wage and Award Rates
It is important to distinguish the average from the minimum wage. From 1 July 2026, the national minimum wage is $26.44 per hour, or $1,004.90 per week on a 38-hour week, amounting to about $52,255 per year. That is roughly half the average full-time salary. Award minimums increased by 4.75% at the same time. Fair Work sets these rates, and they apply to employees not covered by an enterprise agreement.
The gap between the minimum wage and the average highlights the range of earnings in Australia. While the average gives a sense of the middle of the distribution, many workers earn less, and some earn much more.
Gender Differences in Average Earnings
The ABS data also shows a persistent gender pay gap. The average full-time ordinary-time earnings for men are about $113,412 per year, while for women they are about $100,594. That is a difference of roughly $12,818, or about 11.3%. This gap reflects a range of factors including industry distribution, hours worked, and career progression. The job medians page on this site provides more detail on how different occupations compare.
Industry Differences
The average salary also varies significantly by industry. For example, mining and resources typically have high average earnings, while retail and hospitality are lower. The industry medians page on this site provides a breakdown of median earnings by industry, which can be more useful than averages for comparing sectors.
Using the Average as a Reference Point
The average salary in Australia is a useful starting point for understanding where your pay sits. On this site, you can place a salary on the line to see how it compares to the national average, the median, and the minimum wage. The tool also shows your weekly and hourly rate based on a 38-hour week, and the distance from the average.
Remember that the average is calculated from full-time adult employees only. It does not include part-time or casual workers, nor does it account for overtime or bonuses. For a broader view, the all-employees median of $74,100 is often more representative of the typical Australian worker.
How the Figures Are Set
The ABS publishes Average Weekly Earnings twice a year, for May and November. The figures used on this site come from the May 2026 release. The how the figures are set page explains the methodology and the difference between averages and medians. The ABS also releases Employee Earnings and Hours data less frequently, which provides the median figures.
Fair Work sets the national minimum wage and award rates each year, usually effective from 1 July. The ATO sets the tax rates and thresholds, which are updated annually.
Conclusion
The average salary in Australia of $108,352 per year is a key benchmark, but it is only one measure. Your take-home pay depends on tax, your state, your industry, and your personal circumstances. Use the tools on this site to see how your salary compares and to understand the full picture of earnings in Australia.