Understanding defence salary sacrifice
Salary sacrifice is an arrangement where you agree to give up part of your pre-tax salary in exchange for a benefit provided by your employer. In the Defence context, this can apply to Australian Defence Force members and civilian employees of the Department of Defence. Common benefits include additional superannuation contributions, a car through a novated lease, or electronic devices. The key point is that your gross ordinary-time earnings – the figure your employer reports to the ATO and that appears on your payslip as your base salary – does not change. Only your taxable income is reduced by the amount sacrificed.
Because the line on this site uses gross ordinary-time earnings before any sacrifice, your position relative to the national full-time average is determined by your base salary, not by the sacrifice itself. If you want to see where your own gross salary sits, you can place a salary on the line.
How defence salaries compare to the national average
The national full-time adult ordinary-time average is $2083.70 a week, or about $108,352 a year, based on the ABS Average Weekly Earnings for May 2026. The full-time median is about $90,532, and the all-employees median is about $74,100 (ABS Employee earnings, August 2025). These figures cover all industries and occupations, not just Defence.
Defence salaries are set by the Defence Force Remuneration Tribunal for military members and by enterprise agreements or the relevant award for civilian staff. They vary significantly by rank, classification and length of service. A junior recruit may earn below the national median, while a senior officer or a specialist such as a medical officer may earn well above the national average. Without a published Defence-specific average from the ABS, the best reference points are the national averages and medians provided here.
For a broader view of how different occupations and industries compare, see the job medians and industry medians pages.
Salary sacrifice and your take-home pay
While salary sacrifice does not affect the gross figure used for the line, it can change your after-tax income. By reducing your taxable income, you may pay less income tax and Medicare levy. 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 a 2% Medicare levy, with possible reductions for low-income earners.
For example, if your gross salary is $100,000 and you sacrifice $10,000 into super, your taxable income becomes $90,000. That could reduce your marginal rate from 30% to a lower effective rate, depending on other income. However, the gross salary of $100,000 is still the figure used to compare against the national average.
Important rules and limits
The ATO sets rules on what can be salary sacrificed and how much. For superannuation, there are concessional contribution caps ($30,000 per year in 2026–27, including the super guarantee). For novated leases, fringe benefits tax may apply. Defence employees should check their specific workplace agreement or consult a tax professional. The national minimum wage from 1 July 2026 is $26.44 an hour, $1004.90 a week, or about $52,255 a year on a 38-hour week (Fair Work). Award minimums rose by 4.75% from that date. These minimums are relevant for some Defence civilian roles but not for military members covered by the Defence Force Remuneration Tribunal.
Where to get more information
For detailed guidance on salary sacrifice arrangements, the ATO website has comprehensive resources. For Defence-specific policies, refer to the Department of Defence intranet or your unit’s pay office. To understand how the figures on this site are calculated, see how the figures are set. And if you want to check where your own gross salary sits against the national average, use the line tool.
Remember: the line is based on gross ordinary-time earnings before any salary sacrifice. Your sacrifice may improve your after-tax position, but it does not change the salary figure used for comparison.