Meals and entertainment salary packaging and the Australian full-time average
Meals and entertainment salary packaging is a way to reduce your taxable income by using pre-tax dollars to pay for eligible meals, entertainment, and related expenses. It is a fringe benefit offered by some employers, particularly in the not-for-profit and public sectors. While the specific salary for a role that includes this benefit is not published in the Average Line index, we can still discuss how it relates to the national full-time average.
What the index shows
The national full-time adult ordinary-time average is $2,083.70 per week, or about $108,352 per year (ABS Average Weekly Earnings, May 2026, multiplied by 52). This is the line on our site. The full-time median is about $90,532, and the all-employees median is about $74,100 (ABS Employee Earnings, August 2025). 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 (Fair Work).
How packaging fits in
When you have meals and entertainment salary packaging, your employer deducts the packaged amount from your gross salary before tax. This lowers your taxable income, but the underlying salary (the amount before packaging) is what we compare to the full-time average. For example, if your base salary is $100,000 and you package $5,000 for meals and entertainment, your taxable income becomes $95,000. However, the comparison uses the $100,000 figure.
Tax implications
The ATO’s 2026–27 tax rates apply: 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 of 2% also applies before any reductions. Salary packaging reduces your taxable income, potentially moving you into a lower tax bracket and saving you money. However, the benefit is capped and must comply with ATO rules.
Comparing to state averages
State full-time averages vary. For instance, New South Wales is 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, and the Australian Capital Territory about $119,090. If your role is in a particular state, you can compare your base salary to that state’s average using our States and territories page.
Using the tool
To see where your salary sits, Place a salary on the line. Enter your annual base salary before tax. The tool will show your weekly and hourly equivalents on a 38-hour week, and the distance from the full-time average. It also displays the full-time median and the minimum wage for context. Remember that the packaged amount is not included in the base salary for this comparison.
Medians and averages
It is important to distinguish between averages and medians. The full-time average ($108,352) is the mean of all full-time adult ordinary-time earnings. The full-time median ($90,532) is the middle point: half of full-time workers earn more, half earn less. The all-employees median ($74,100) includes part-time and casual workers. Your base salary may be above or below these figures regardless of packaging.
How the figures are set
The average comes from the ABS Average Weekly Earnings survey, published twice a year (May and November). The medians come from the ABS Employee Earnings and Hours survey, most recently August 2025. The minimum wage is set by Fair Work and updated annually. For more detail, see How the figures are set.
Summary
Meals and entertainment salary packaging is a valuable benefit that reduces your tax, but it does not change the base salary used for comparison against the national full-time average. If your role offers this packaging, focus on your base salary to see how it stacks up. The Average Line index does not publish a specific figure for this benefit, so the best approach is to compare your base salary to the $108,352 full-time average.