Best Salary Sacrifice and the National Average
Salary sacrifice is a strategy that can move your taxable income above or below the national full-time average, depending on how you structure it. 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 figure represents gross salary before any sacrifice. If you salary sacrifice part of your pay, your taxable income falls, potentially dropping below this line. But the benefits you receive—such as extra super, a car, or other perks—may still count as remuneration for other purposes.
How Salary Sacrifice Affects Your Position on the Line
The site's Place a salary on the line tool uses your yearly salary before tax. When you enter a salary that has been reduced by sacrifice, the tool shows how far you are from the full-time average. For instance, if your gross package is $120,000 but you sacrifice $15,000 into super, your taxable income is $105,000. That is about $3,352 below the average. However, your total remuneration—including the super contribution—is $120,000, which is above the average. The tool does not automatically add back reportable fringe benefits, so you need to consider both figures.
The Role of FBT and Reportable Fringe Benefits
Some salary sacrifice benefits attract fringe benefits tax (FBT). If your employer provides a car or pays for private expenses, the taxable value of those benefits may be reported on your payment summary as a reportable fringe benefits amount. This amount is added to your taxable income for certain purposes, such as the Medicare levy surcharge, HECS-HELP repayments, and the income test for some government benefits. For the average line, the ABS uses ordinary-time earnings before any sacrifice or fringe benefits. So your position relative to the line depends on which income measure you use.
Best Salary Sacrifice Options to Stay Above or Below the Average
The best salary sacrifice arrangements are those that align with your financial goals and tax situation. If you want to reduce your taxable income below the average—for example, to avoid the 30% tax bracket or to lower your Medicare levy surcharge—sacrificing into super is effective. The concessional contributions cap for 2026–27 is $30,000, and contributions are taxed at 15% instead of your marginal rate. This can bring your taxable income down significantly. For someone earning $120,000, sacrificing $15,000 into super drops taxable income to $105,000, below the average of $108,352.
If you want to maintain a high total remuneration package while still benefiting from tax concessions, consider an electric car novated lease. The FBT exemption for zero-emission vehicles means the benefit is not reportable, so your taxable income stays lower while you enjoy the car. This can keep your taxable income below the average while your total package remains competitive.
Comparing to Medians and Minimum Wage
The full-time median, from the ABS Employee Earnings for August 2025, is about $90,532. The all-employees median is about $74,100. Salary sacrifice can push your taxable income below these medians as well, but your total remuneration may still be above them. 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. Salary sacrifice is less common at minimum wage levels because the benefit of reducing taxable income is smaller and many minimum wage workers do not have access to salary packaging.
State Averages and Salary Sacrifice
State full-time averages vary. For example, the Australian Capital Territory average is about $119,090, while Tasmania is about $96,008. If you work in a high-average state like the ACT, salary sacrifice can help you stay below the state average if that is your goal. Conversely, in a lower-average state like Tasmania, even a modest sacrifice might push you below the line. The States and territories page shows how your location affects the comparison.
Tax Implications of Salary Sacrifice
The 2026–27 resident tax rates apply to your taxable income after sacrifice: 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 $190,000. The Medicare levy is 2% before any reductions. By reducing your taxable income, salary sacrifice can lower your marginal rate. For example, if your gross salary is $140,000 and you sacrifice $10,000 into super, your taxable income drops to $130,000, keeping you in the 30% bracket rather than the 37% bracket. This saves you tax on that $10,000 at a rate of 22% (37% minus 15% super tax).
How the Figures Are Set
The figures used on this site come from official sources. The average is from the ABS Average Weekly Earnings, May 2026. Medians are from the ABS Employee Earnings, August 2025. The minimum wage is from Fair Work, effective 1 July 2026. These are updated periodically. For more detail, see How the figures are set.
Conclusion
The best salary sacrifice strategy depends on whether you want your taxable income to sit above or below the national full-time average. By choosing FBT-exempt benefits like super or electric cars, you can reduce your taxable income while still enjoying a high total package. Always consider the impact on reportable fringe benefits, Medicare levy surcharge, and other income tests. Use the Place a salary on the line tool to see where your salary after sacrifice stands.