How home loan salary sacrifice affects your pay compared to the national average
Home loan salary sacrifice is not an occupation or industry, so the Australian salary index does not hold a specific figure for it. Instead, you can place your gross salary (the amount before any sacrifice) on the line against the national full-time average. This page explains how salary sacrifice works and what it means for your position relative to the average.
What is home loan salary sacrifice?
Salary sacrifice is an arrangement where you give up part of your pre-tax salary in return for a benefit provided by your employer. For a home loan, your employer makes payments directly to your mortgage lender from your pre-tax earnings. This reduces your taxable income, which can lower the amount of income tax you pay. However, the benefit may be subject to Fringe Benefits Tax (FBT) unless your employer is a public benevolent institution, health promotion charity, or certain other not-for-profit organisations. The ATO provides caps on the amount that can be sacrificed without incurring FBT for these employers.
Because the arrangement reduces your taxable income, your net take-home pay may be lower than if you received the full salary in cash. But the gross salary figure – the amount before sacrifice – is the one used to compare against the national full-time average. That figure is what you would enter into the salary line tool to see where you sit.
The national full-time average and other benchmarks
The national full-time adult ordinary-time average is $2,083.70 a week, or about $108,352 a year (ABS Average Weekly Earnings, May 2026, multiplied by 52). This is the line on this site. The full-time median is about $90,532, and the all-employees median is about $74,100 (ABS Employee earnings, August 2025). Men's full-time ordinary-time average is about $113,412; women's is about $100,594.
State averages also vary: New South Wales full-time average 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.
What would move your pay above or below the average?
If your gross salary before any sacrifice is above $108,352, you are above the national full-time average. If it is below, you are below. Salary sacrifice does not change that gross figure. However, the sacrifice can affect your take-home pay and tax position. For example, if your gross salary is exactly the average but you sacrifice $10,000, your taxable income drops to $98,352, which is below the full-time median. Your net pay after tax will be lower than someone earning the average without sacrifice, but your gross salary still sits on the line.
To move your gross salary above the average, you would need a pay rise or a new role with higher base pay. Below the average, you might be in a part-time role, a lower-paying industry, or early in your career. The 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 – well below the average.
Tax considerations for 2026–27
Resident tax rates for 2026–27 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; 45% above $190,000. The Medicare levy is 2% (before any reductions). Salary sacrifice reduces your taxable income, so you may fall into a lower tax bracket. For instance, sacrificing $10,000 from a $108,352 salary moves you from the 30% bracket into the same bracket but with less income taxed at that rate.
How the figures are set
The national average comes from the ABS Average Weekly Earnings survey, which is published twice a year (May and November). Medians come from the ABS Employee Earnings and Hours survey (August 2025). The minimum wage is set by Fair Work, effective 1 July 2026. For more detail on how these benchmarks are calculated, see How the figures are set.
Salary sacrifice and your position on the line
When you use the Place a salary on the line tool, you enter your yearly gross salary before tax. The tool then shows the weekly and hourly equivalent on a 38-hour week, and the distance from the full-time average. If you have a home loan salary sacrifice arrangement, enter the gross salary you would earn without the sacrifice – that is the figure your employer reports to the ATO as your salary. The sacrifice itself is a separate arrangement that does not change that reported figure.
Summary
Home loan salary sacrifice can reduce your taxable income and tax bill, but it does not alter your gross salary for comparison against the national average. To see where you stand, compare your gross salary to $108,352. If it is above, you are above the line; if below, you are below. The arrangement is most beneficial for employees in not-for-profit sectors where FBT exemptions apply. Always consult a tax professional to understand your specific situation.