How your salary compares to the national line
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). This is the line on this site. If your salary is above this line, you are earning more than the typical full-time worker; below it, you are earning less. But where you sit relative to the line is only one piece of the puzzle when deciding how much to salary sacrifice into super.
State and territory differences
Your state or territory can shift your pay well off the national line. For example, the full-time average in the Australian Capital Territory is about $119,090, while in Tasmania it is about $96,008. If you work in the ACT, you are likely earning above the national line; in Tasmania, below it. These differences matter because the tax benefit of salary sacrifice grows as your marginal tax rate rises. A worker on the ACT average is in the 30% tax bracket (plus Medicare levy), while a worker on the Tasmanian average is also in the 30% bracket but with less room to sacrifice before hitting the cap. See how your state compares on the States and territories page.
Award and minimum wage context
Not everyone is on an award, but if you are, your minimum rate is set by Fair Work. From 1 July 2026, the national minimum wage is $26.44 an hour, or about $52,255 a year on a 38-hour week. Award minimums rose 4.75% from that date. If you are paid at or near the minimum, salary sacrifice may still be worthwhile, but your concessional contributions cap will be a tighter constraint. For example, a minimum-wage worker earning $52,255 would have a marginal tax rate of 15% (plus Medicare), so the immediate tax saving from salary sacrifice is smaller than for someone on the full-time average. The Guides section has more on how award rates interact with super.
Tax brackets and the super cap
The 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 adds 2% (before any reductions). The ATO sets an annual cap on concessional contributions – that is, the total of your employer's compulsory super guarantee and any salary sacrifice amounts you arrange. If you exceed the cap, the excess is taxed at your marginal rate plus an interest charge. So the first question is: how much room do you have under the cap?
For someone earning the national full-time average of $108,352, the compulsory super guarantee (assuming 11.5% from 1 July 2026) would be about $12,460. That leaves roughly $15,040 of headroom before hitting the cap (if the cap is $27,500 – but check the ATO's current figure, as it is indexed). If you are on the men's full-time average of $113,412, the compulsory contribution is about $13,042, leaving about $14,458 of headroom. For women on the full-time average of $100,594, compulsory is about $11,568, leaving about $15,932. These are rough estimates; the exact cap and your individual circumstances matter.
How the figures are set
The averages and medians on this site come from the ABS. The full-time average is from Average Weekly Earnings, May 2026. The full-time median is about $90,532, and the all-employees median is about $74,100 (ABS Employee Earnings, August 2025). The median tells you what the typical worker earns – half earn more, half less. If your salary is around the median, you are in the 30% tax bracket, and salary sacrifice can still be beneficial, but you may have less disposable income to sacrifice. The How the figures are set page explains the methodology.
Putting it together: how much to sacrifice
There is no single answer to “how much should I salary sacrifice into super?” because it depends on your income, your tax bracket, your age, your other financial goals, and the cap. A common strategy is to aim to use the full concessional cap each year if you can afford to, especially if you are in the 30% bracket or higher. But if you are below the national average, you might prioritise paying down debt or building an emergency fund first.
For example, a worker on the New South Wales full-time average of about $109,658 is in the 30% bracket. Sacrificing an extra $5,000 a year would save about $1,500 in tax (30% plus 2% Medicare) and boost super. A worker on the Western Australia full-time average of about $115,825 is also in the 30% bracket but closer to the 37% threshold; sacrificing more could keep them under that threshold.
Remember that salary sacrifice reduces your take-home pay. Use the Place a salary on the line tool to see how your current salary compares to the national average and to estimate the weekly and hourly figures on a 38-hour week. Then talk to your employer or super fund about setting up a salary sacrifice arrangement.
Final thoughts
The national line is a useful benchmark, but your personal situation – including your state, award, and tax bracket – will determine the optimal amount to salary sacrifice. Always check the current concessional contributions cap on the ATO website and consider seeking advice from a qualified financial planner.