Understanding Salary Sacrifice and the Full-Time Average
When you are placing a salary on the line, the figure you enter is your gross annual salary before tax. Salary sacrifice arrangements—such as for superannuation, a car, or other benefits—are deducted from your gross pay before tax is calculated. This means your gross salary remains the same for comparison purposes, even though your taxable income is lower.
The national full-time adult ordinary-time average, as measured by the ABS Average Weekly Earnings for May 2026, is $2,083.70 per week, or about $108,352 per year (multiplied by 52). This is the line against which all salaries are measured on this site. It represents earnings before any salary sacrifice deductions.
How Salary Sacrifice Interacts with the Line
If you salary sacrifice, your employer reduces your gross salary by the sacrificed amount and pays that amount to the benefit provider. For example, if your gross salary is $120,000 and you salary sacrifice $15,000 into super, your taxable income becomes $105,000. However, the $120,000 is still your gross salary and is the figure you would enter into the tool. The line compares your gross salary to the national average, so your position on the line is based on $120,000, not $105,000.
This distinction is important because the ABS Average Weekly Earnings figure is also gross of any salary sacrifice. The ABS collects ordinary-time earnings before deductions, including salary sacrifice. Therefore, to make a fair comparison, you must use your pre-sacrifice salary.
Reading Your Pay as a Year, Week, and Hour
The on-site tool accepts a yearly salary before tax and converts it to a weekly amount based on a 38-hour week, plus an hourly rate. It also shows the distance from the full-time average. For example, if your gross salary is $108,352, you are exactly on the line. If it is higher, you are above; if lower, below.
When you salary sacrifice, your weekly take-home pay will be lower than the weekly amount shown, because the tool displays the gross weekly equivalent. The hourly rate shown is also gross. To understand your net pay, you would need to apply tax rates and the Medicare levy, but that is separate from the line.
State and Territory Averages
If you are comparing your salary sacrifice arrangement across states, note that full-time averages vary. For instance, the Australian Capital Territory has the highest full-time average at about $119,090, while Tasmania has the lowest at about $96,008. You can explore states and territories to see how your location affects the comparison.
Salary Sacrifice and Tax
Salary sacrifice reduces your taxable income, which can lower the amount of tax you pay under the 2026–27 resident tax rates: nil to $18,200; 15% to $45,000; 30% to $135,000; 37% to $190,000; 45% above that. The Medicare levy of 2% also applies before reductions. However, the line does not account for tax; it is purely a gross salary benchmark.
Common Salary Sacrifice Items
- Superannuation: Contributions above the mandatory Super Guarantee (11.5% from 1 July 2026) can be salary sacrificed up to the concessional cap.
- Car: Novated leases allow you to sacrifice part of your salary for a vehicle.
- Other benefits: Some employers offer salary packaging for laptops, parking, or childcare.
Each arrangement reduces your taxable income but does not change your gross salary for the purpose of this index.
Where Your Pay Sits
If you are unsure whether your salary sacrifice arrangement is typical, you can compare your gross salary to the full-time median of about $90,532 (ABS Employee earnings, August 2025) or the all-employees median of about $74,100. The national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, or about $52,255 per year on 38 hours. Award minimums rose 4.75% from that date.
For more detailed comparisons by occupation or industry, see job medians and industry medians. These figures are medians, not averages, and are based on the ABS Employee Earnings survey.
Practical Steps for Calculating Salary Sacrifice
- Determine your gross annual salary as stated in your employment contract.
- Identify the amount you salary sacrifice each year (e.g., $10,000 into super).
- Your gross salary for the line is the pre-sacrifice figure.
- Enter that figure into the tool to see your weekly and hourly equivalents.
- The tool will show how far you are from the national full-time average of $108,352.
Remember, the line is based on the ABS Average Weekly Earnings, which is published twice a year (May and November). The most recent figure is May 2026. For more on how these figures are set, see how the figures are set.
Frequently Misunderstood Points
- Salary sacrifice is not a deduction from the line: The line uses gross earnings before any salary sacrifice. Do not subtract your sacrifice before entering your salary.
- The tool does not calculate tax: It only shows gross weekly and hourly amounts. For net pay, use the ATO tax tables.
- Award minimums: If you are on an award, your minimum wage may be higher than the national minimum. The national minimum is $26.44 per hour from 1 July 2026, but award rates increased by 4.75%.
For further guidance, visit Guides for articles on salary packaging and comparisons.
Conclusion
Calculating salary sacrifice in relation to the national full-time average is straightforward: use your gross salary before sacrifice. The line of $108,352 per year (ABS Average Weekly Earnings, May 2026) is a gross benchmark. By entering your pre-sacrifice salary, you can see where you stand against the average, the median, and the minimum wage. This helps you understand your overall compensation package, not just your take-home pay.