Non for Profit Salary Packaging and the Full-Time Average
If you work in the not-for-profit sector, you may have access to salary packaging – an arrangement that lets you sacrifice part of your pre-tax salary for benefits such as rent, mortgage payments, or car expenses. This can lower your taxable income and increase your take-home pay. But how does your base salary compare with the national full-time average? This article explains where not-for-profit pay typically sits and how packaging changes the picture.
The National Full-Time Average
The Australian Bureau of Statistics (ABS) publishes Average Weekly Earnings twice a year. The most recent figure, for May 2026, puts the national full-time adult ordinary-time average at $2,083.70 per week, or about $108,352 per year (multiplied by 52). This is the line that the Place a salary on the line tool uses. The median full-time salary is lower at $90,532, and the all-employees median is $74,100 (ABS Employee Earnings, August 2025). The national minimum wage from 1 July 2026 is $26.44 per hour, or $52,255 per year on a 38-hour week.
Not-for-profit employers often pay below the full-time average. Many roles in community services, charities, and religious organisations offer base salaries between the median and the minimum wage. However, salary packaging can make a significant difference to your net income.
How Salary Packaging Works
Under Australian tax law, certain not-for-profit employers can offer salary packaging that is exempt from fringe benefits tax (FBT) up to a cap set by the ATO. Common packaged items include mortgage payments, rent, school fees, and cars. By reducing your taxable income, you pay less income tax and the Medicare levy. For example, if your base salary is $80,000 and you package $15,000, your taxable income drops to $65,000. Your take-home pay then reflects the lower tax bracket, even though your employer still provides the $15,000 worth of benefits.
It is important to note that the How the figures are set page explains that the site's line uses your base salary before tax. Salary packaging is not entered into the tool. So if you package a portion of your salary, the line will show where your base salary sits relative to the average. To see the full effect, you would need to compare your packaged salary's equivalent pre-tax value – but the tool is designed for straightforward base salaries.
Comparing Not-for-Profit Pay to the Average
Let's look at some benchmarks. The full-time average of $108,352 is well above the typical not-for-profit base salary. Many community sector awards, such as the Social, Community, Home Care and Disability Services Industry Award, have rates below that figure. For instance, a Level 4 social worker might earn around $85,000 to $95,000 per year. That is below the average but above the median. With salary packaging, the effective take-home pay can approach or even exceed the average, depending on the amount packaged and your tax bracket.
The tax brackets 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; and 45% above $190,000. The Medicare levy is 2% before any reductions. By packaging up to the FBT-exempt cap, you can reduce your taxable income by thousands of dollars, potentially moving you into a lower bracket. This is especially valuable for those earning between $45,000 and $135,000, where the marginal rate is 30%.
State-by-State Context
Full-time averages vary by state and territory. The highest is the Australian Capital Territory at $119,090, followed by Western Australia at $115,825, and New South Wales at $109,658. The lowest is Tasmania at $96,008. Not-for-profit salaries tend to follow similar geographic patterns, but the sector's pay scales are often set by awards or enterprise agreements that apply nationally. So a not-for-profit worker in Tasmania may be closer to the state average than one in the ACT, where the overall average is higher.
What the Tool Shows
When you enter your base salary into the Place a salary on the line tool, it calculates your weekly and hourly earnings on a 38-hour week and shows the distance from the full-time average. If your base salary is $80,000, the tool will show that you are about $28,352 below the average. But remember, that does not account for salary packaging. Your actual standard of living may be higher than the base figure suggests.
Final Thoughts
Non for profit salary packaging is a valuable benefit that can bridge the gap between a below-average base salary and the national full-time average. While the sector often pays less, the tax advantages can make your net income competitive. Use the site's tool to see where your base salary stands, and consider the additional value of packaging when evaluating your overall compensation.