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Can you salary sacrifice childcare fees? Salary sacrificing childcare fees and the national average

The national full-time average is $108,352 per year, but salary sacrificing childcare fees can reduce taxable income and affect take-home pay.

This sits on the Australian full-time average.

Week, hour, and a tax sketch

$2,084 a week · $54.83 an hour if spread over 38 hours

About $83,159 after resident income tax and a 2% Medicare levy.

2026–27 resident rates and a 2% Medicare levy. Not a tax assessment.Open the full line

Can you salary sacrifice childcare fees? How salary sacrificing childcare fees and the national average

Salary sacrificing childcare fees can reduce taxable income and affect take-home pay. The national full-time adult ordinary-time average is $2083.7 a week, about $108,352 a year (ABS Average Weekly Earnings, May 2026, × 52). This is the site's line. State averages differ: New South Wales about $109,658; Victoria about $106,137; Queensland about $106,064; South Australia about $102,450; Western Australia about $115,825; Tasmania about $96,008; Northern Territory about $103,173; Australian Capital Territory about $119,090. Award rates can move the figure off the national line.

How the figures are set

The figures are set by the ABS, Fair Work, and the ATO. The national full-time median about $90,532. All-employees median about $74,100 (ABS Employee earnings, August 2025). Men's full-time ordinary-time average about $113,412. Women's about $100,594. National minimum wage from 1 July 2026: $26.44 an hour, $1004.9 a week, about $52,255 a year on 38 hours. Award minimums rose 4.59%. Resident tax 2026–27: nil to $18,200; 15% to $45,000; 30% to $135,000; 37% to $190,000; 45% above that. Medicare levy 2% before reductions.

Why a state or an award can move the figure off the national line

A state or an award can move the figure off the national line. State full-time averages: New South Wales full-time average about $109,658; Victoria full-time average about $106,137; Queensland full-time average about $106,064; South Australia full-time average about $109,658; Western Australia full-time average about $115,658; Tasmania full-time average about $96,008; Northern Territory full-time average about $103,173; Australian Capital Territory full-time average about $119,090. Award rates can move the figure off the national line.

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Questions

Can I salary sacrifice childcare fees?

Yes, you can salary sacrifice childcare fees through an employer's salary packaging arrangement, subject to ATO rules. The ATO allows salary packaging for childcare under certain conditions, but there are caps and it is less common than other benefits. It reduces taxable income, so your taxable income and affect take-home pay.

How does salary sacrificing affect my comparison to the national average?

Salary sacrificing reduces taxable income, so your take-home pay and affect how your salary compares to the national average. The national average is based on ordinary-time ordinary-time average from ABS Average Weekly Earnings, May 2026. State averages differ, and award rates can move the figure off the national line.

Do state awards affect salary sacrificing?

Award rates affect salary sacrificing because award rates set minimum pay and conditions. The national minimum wage from Fair Work from 1 July 2026 is $26.44 per hour, about $52,255 per year on 38 hours. State full-time averages differ, and award rates can move the figure off the national line.

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