How Salary Sacrificing Super Affects Your Pay on the Line
Salary sacrificing superannuation is an arrangement where you agree with your employer to forgo part of your pre-tax salary in exchange for additional employer super contributions. The sacrificed amount is paid directly into your super fund and is taxed at the concessional rate of 15%, rather than at your marginal income tax rate. This can reduce your taxable income and the amount of tax withheld from your pay, though your take-home cash decreases.
When you use this site, you enter your yearly salary before tax. That figure is your gross salary, including any amount you sacrifice. The site then shows your weekly and hourly pay based on a 38-hour week, and compares your salary to the national full-time adult ordinary-time average. That average is $2,083.70 per week, or about $108,352 per year, from the ABS Average Weekly Earnings survey for May 2026. Your salary is measured against that line, regardless of whether you salary sacrifice.
Your Salary Before Tax and the National Average
The line on this site is the national full-time average. If your gross salary is $108,352, you sit exactly on the line. If you salary sacrifice $10,000 of that, your taxable income falls to $98,352, but the salary you enter on the site remains $108,352. The site does not adjust for salary sacrifice; it shows your pre-sacrifice figure. So your position on the line reflects your total remuneration package, not your assessable income. This is important when comparing your pay to the full-time median of about $90,532 (ABS Employee Earnings, August 2025) or the all-employees median of about $74,100.
How Salary Sacrifice Alters Your Tax Position
For the 2026–27 income year, the resident tax rates are: nil on the first $18,200; 15% on income 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 to most taxpayers, with reductions available for low earners. By salary sacrificing, you reduce your taxable income, which may lower your marginal tax rate. For example, if your gross salary is $110,000 and you sacrifice $10,000, your taxable income drops to $100,000, keeping you in the 30% bracket rather than the 37% bracket. The sacrificed $10,000 is taxed at 15% inside super, saving you the difference between your marginal rate and 15%.
Comparing Your Pay to Medians and Minimum Wage
The full-time median of $90,532 is lower than the average, meaning more than half of full-time employees earn less than that figure. If your gross salary is above the median, salary sacrificing may still leave your taxable income above the median, but your take-home cash will be lower. The all-employees median of $74,100 includes part-time and casual workers. The national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, or about $52,255 per year on a 38-hour week (set by Fair Work). Salary sacrificing is generally not available to award-covered employees unless their award or agreement allows it, and it cannot reduce your pay below the minimum wage.
State Averages and Your Location
Full-time average earnings vary by state and territory. The site’s States and territories page shows how your salary compares locally. For example, New South Wales averages 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; the Northern Territory about $103,173; and the Australian Capital Territory about $119,090. If you salary sacrifice, your gross salary (before sacrifice) is compared to these state averages. Your actual taxable income may be lower, but the comparison uses the full amount.
Practical Considerations
To salary sacrifice super, you need a written agreement with your employer. The ATO sets an annual cap on concessional contributions (the combined total of your salary sacrifice and your employer’s compulsory super guarantee). Contributions above the cap are taxed at your marginal rate plus an excess charge. You can also use carry-forward rules if your total super balance is below a certain threshold. The super guarantee is paid by your employer on your ordinary time earnings and is separate from any salary sacrifice arrangement. Salary sacrifice cannot replace the super guarantee; it is an additional contribution.
For more guidance on salary sacrifice and other pay arrangements, see the Guides section. To understand how the ABS, Fair Work, and the ATO set the figures used on this site, visit How the figures are set.
Summary
Salary sacrificing super is a tax-effective way to boost your retirement savings, but it reduces your take-home pay. On this site, your salary is always shown as your gross amount before sacrifice, so your position on the line reflects your total remuneration. The national full-time average of $108,352, the medians, and the minimum wage provide context for where your pay sits. Always check the ATO for current caps and your employer for eligibility.