Understanding remserv salary packaging
Salary packaging is a way to structure your pay so that some of your income goes towards benefits before tax is calculated. Remserv is one of the providers that manage these arrangements, often for employees in the health, education, and not-for-profit sectors. The key idea is that by reducing your taxable income, you can keep more of your earnings—especially if your salary is close to or above the national full-time average.
The national full-time average as a reference point
The Australian Bureau of Statistics (ABS) publishes Average Weekly Earnings twice a year. The most recent figure, for May 2026, shows the national full-time adult ordinary-time average at $2,083.70 per week, which works out to about $108,352 a year (multiplied by 52). This is the figure used on this site as the line against which all salaries are measured. If your gross salary is at this level, you are earning exactly the national average. But your take-home pay—what you actually receive after tax—will be lower, and salary packaging can change that.
How salary packaging changes your take-home pay
When you salary package through remserv, you agree to forgo part of your cash salary in exchange for a benefit. The benefit is often provided by your employer, and the cost is deducted from your pre-tax income. Common packaged items include cars (via novated leases), additional superannuation contributions, laptops, or even mortgage payments in some cases. The result is that your taxable income decreases, so you pay less income tax and Medicare levy.
For a resident in 2026–27, the tax rates are:
- Nil on the first $18,200
- 15% on income between $18,201 and $45,000
- 30% on income between $45,001 and $135,000
- 37% on income between $135,001 and $190,000
- 45% on income above $190,000 Plus a Medicare levy of 2% (with possible reductions for low-income earners).
If your gross salary is $108,352 (the average), your taxable income after salary packaging might drop to, say, $98,352 if you package $10,000 worth of benefits. That $10,000 would otherwise have been taxed at 30% plus 2% Medicare levy, so you save $3,200 in tax. Your take-home pay from the remaining cash salary would be higher than if you had not packaged. However, you also receive the benefit (e.g., a car), so your overall compensation package is worth more.
Comparing with medians and the minimum wage
It is helpful to see where the average sits relative to other benchmarks. The full-time median employee earnings from the ABS Employee Earnings survey (August 2025) are about $90,532 a year. That means half of full-time workers earn less than that. The all-employees median (including part-time and casual) is about $74,100. The national minimum wage from 1 July 2026, set by Fair Work, is $26.44 an hour, or $1,004.90 a week on a 38-hour week, which is about $52,255 a year.
If you are on the average of $108,352, you are well above the minimum wage and above the full-time median. Salary packaging through remserv can make that gap even more favourable by reducing your tax bill. But it is important to remember that salary packaging is not available to everyone—it depends on your employer and the type of work you do.
State-by-state averages
The national average masks differences across states and territories. According to the ABS, the full-time average in New South Wales is about $109,658; in Victoria about $106,137; in Queensland about $106,064; in South Australia about $102,450; in Western Australia about $115,825; in Tasmania about $96,008; in the Northern Territory about $103,173; and in the Australian Capital Territory about $119,090. If you live in a state with a higher average, like the ACT or WA, salary packaging might be even more beneficial because you are likely in a higher tax bracket.
Practical considerations with remserv
Remserv administers salary packaging for many employers. They handle the paperwork, ensure compliance with ATO rules, and often provide a choice of benefits. Common caps apply: for example, the ATO limits how much you can salary package for certain items like cars (through a novated lease) or entertainment. For not-for-profit employees, there are FBT exemptions up to a certain amount (e.g., $15,900 for general benefits and $2,650 for meal entertainment). These caps mean you cannot package your entire salary, but you can still make a meaningful difference to your tax position.
How this site can help
You can use this site to place a salary on the line and see how it compares to the national average, medians, and minimum wage. If you are considering salary packaging, you can enter your gross salary and then estimate the effect of packaging. The site also has guides that explain how salary packaging interacts with tax and the ATO rules. Remember that the figures here are based on official sources: the ABS for averages and medians, Fair Work for the minimum wage, and the ATO for tax rates.
Final thoughts
Remserv salary packaging is a legitimate way to reduce your taxable income and increase your take-home pay, especially if your salary is around the national average or higher. But it is not a one-size-fits-all solution. Your employer must offer it, and the benefits you choose must be eligible. Always check with a tax professional or your employer before making decisions. The national average of $108,352 is a useful benchmark—if you are above it, salary packaging can help you keep more of what you earn.