Can I salary sacrifice into my super?
If you are wondering "can I salary sacrifice into my super", the short answer is yes, most employees can arrange with their employer to put part of their before-tax salary directly into their superannuation fund. This is known as salary sacrifice, and it can reduce your taxable income while boosting your retirement savings. But how does it affect the salary figure you see on Average line? And where does your pay sit against the national full-time average?
The national full-time average and your gross salary
Average line shows your yearly salary before tax. That is the figure your employer reports as your ordinary-time earnings. If you salary sacrifice $10,000 a year into super, your gross salary remains the same — the sacrifice comes out of your pay before tax, but it is still part of your total remuneration. The national full-time adult ordinary-time average, based on ABS Average Weekly Earnings for May 2026, is $2,083.70 a week, or about $108,352 a year. That is the line your salary is measured against.
Because salary sacrifice does not change your gross salary, your position relative to the line stays the same. However, your taxable income drops, which can affect your take-home pay and your tax bracket. The ATO allows salary sacrifice contributions up to the concessional contributions cap, which for 2026–27 is $30,000 a year (including your employer's compulsory super guarantee).
How state averages can move the figure off the national line
Your state's full-time average may be quite different from the national line. For instance, Western Australia has a full-time average of about $115,825, well above the national $108,352, while Tasmania averages about $96,008. If you work in a state with a higher average, your salary might be below your state's average even if it is above the national line. The opposite can happen in lower‑average states. These differences reflect the industries and occupations common in each state — mining in WA, public administration in the ACT, tourism in Tasmania.
When you salary sacrifice into super, your gross salary is still compared to these state averages on our States and territories page. So if you earn $100,000 in Western Australia, you are below the state average of about $115,825 but still close to the national line. In Tasmania, $100,000 would be above the state average.
Award minimums and salary sacrifice
Fair Work sets minimum wages for award-covered employees. From 1 July 2026, the national minimum wage is $26.44 an hour, $1,004.90 a week, or about $52,255 a year on a 38‑hour week. Award minimums rose by 4.75% from that date. These are minimum gross rates — salary sacrifice cannot reduce your pay below them. If you are on an award, your employer must pay you at least the base rate for your classification, and any salary sacrifice arrangement is on top of that. So your gross salary must still meet the award minimum.
For example, if your award rate is $30 an hour, your gross salary must be at least $30 an hour before any sacrifice. Salary sacrifice into super is a voluntary reduction in your take-home pay, not a reduction in your gross wage. Your award entitlements, such as penalty rates and overtime, are calculated on your gross hourly rate, not the sacrificed amount.
Medians and averages: what they mean for your pay
The national full-time median is about $90,532 a year, based on ABS Employee Earnings for August 2025. That is the middle point — half of full-time workers earn more, half earn less. The all-employees median is about $74,100. These medians are lower than the average because high earners pull the average up. If you salary sacrifice, your gross salary is still compared to these medians on our Job medians and Industry medians pages.
Men's full-time ordinary-time average is about $113,412, women's about $100,594. These gender differences can also affect where your pay sits relative to the line, especially if you work in an industry or occupation dominated by one gender.
Practical considerations
Before setting up a salary sacrifice arrangement, check your employer's policy and your super fund's acceptance of employer contributions. The ATO caps concessional contributions at $30,000 for 2026–27, including the super guarantee. If you exceed the cap, the excess is taxed at your marginal rate plus an interest charge.
Salary sacrifice can be a smart way to save tax, especially if you are in a higher tax bracket. For 2026–27, resident 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 $190,000. The Medicare levy of 2% applies before any reductions. By sacrificing into super, you reduce your taxable income, potentially dropping into a lower bracket.
Where your salary sits on the line
To see where your pay sits against the national full-time average, use our Place a salary on the line tool. Enter your gross annual salary before tax, and we will show you the weekly and hourly equivalents on a 38‑hour week, plus the distance from the line. Remember, salary sacrifice does not change that gross figure.
If you are comparing your salary to state averages or award rates, keep in mind that the line is a national average. Your actual pay may be above or below it for many reasons — your industry, your occupation, your experience, and your location. Salary sacrifice into super is one more factor that affects your take-home pay, but it does not move the line.
For more detail on how the figures are calculated, see How the figures are set.