Positive Salary Packaging and the National Average
Positive salary packaging refers to arrangements where you sacrifice part of your pre-tax salary for benefits such as a car, additional superannuation, or other fringe benefits. These arrangements can reduce your taxable income, potentially increasing your take-home pay if the benefits are exempt or concessional under fringe benefits tax (FBT) rules. However, the national full-time average published on this site is based on gross salary before any packaging. The current national full-time average is $108,352 a year (ABS Average Weekly Earnings). This figure represents ordinary-time earnings for full-time adult employees, excluding overtime.
When you enter your salary on the Place a salary on the line tool, you are asked for your yearly salary before tax. If you have a positive salary packaging arrangement, you should enter the gross salary (the amount before any sacrifice) to see how it compares to the national line. The packaging itself does not change your gross salary for comparison purposes, but it can lower your taxable income, affecting your net pay relative to the average. For example, if your gross salary is $120,000 but you package $15,000 for a car, your taxable income becomes $105,000. Your gross salary is still above the national average, but your taxable income is below it.
The national full-time median is $90,532, and the all-employees median is $74,100 (ABS Employee earnings). These medians are lower than the average because the average is pulled up by high earners. Positive salary packaging is more common in industries and occupations with higher pay, such as public administration, healthcare, and education. In these sectors, packaging can be a significant part of total remuneration.
State full-time averages also vary, as shown on the States and territories page. For instance, the Australian Capital Territory has the highest full-time average at $119,090, while Tasmania has the lowest at $96,008. These differences reflect the mix of industries and occupations in each state. Salary packaging rules can also differ by state, particularly for FBT exemptions on items like electric cars or public benefit concessions. If you work in a state with a higher average, your gross salary is more likely to be above the national line, but packaging can still reduce your taxable income.
Award differences matter too. The national minimum wage from 1 July 2026 is $26.44 an hour, $1,004.9 a week, or about $52,255 a year on a 38-hour week. Award minimums rose by 4.75% from the same date. Many awards include provisions for salary packaging, such as allowing employees to sacrifice part of their base rate for superannuation or other benefits. However, awards generally require that the packaged amount does not reduce the employee's base rate below the award minimum. This means that if you are on an award, your packaging options are constrained by the award's minimum wage provisions.
The tax system also interacts with salary packaging. For the 2026–27 income year, 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 is 2% before any reductions. By reducing your taxable income through packaging, you may move into a lower tax bracket, increasing your after-tax income. For example, if your gross salary is $120,000 and you package $20,000, your taxable income drops to $100,000, which is still in the 30% bracket but with a lower overall tax bill.
It is important to keep the full-time average, medians, and minimum wage distinct. The average is a measure of central tendency influenced by high earners, while the median is the midpoint. The minimum wage is the legal floor. Positive salary packaging can make your effective pay (after packaging) differ from all three, but the site's line is the full-time average. To see how your salary compares, use the Place a salary on the line tool. For more detail on how the figures are set, see How the figures are set.
In summary, positive salary packaging can move your effective pay off the national line by reducing your taxable income, but your gross salary remains the benchmark for comparison. State and award differences affect both the average and the packaging options available. Understanding these factors helps you see where your pay sits relative to the national full-time average.