How your state and award shape your pay
The national full-time adult ordinary-time average sits at $2,083.70 a week, or about $108,352 a year, according to the ABS Average Weekly Earnings for May 2026. But that figure is a national blend. Where you live and the award that covers your job can push your salary well above or below that line. This matters when you consider benefits like salary continuance insurance, which replaces part of your income if you cannot work due to illness or injury. The cost and availability of such insurance can be influenced by your award or state-based regulations.
State differences are real
The ABS data shows a clear spread across states and territories. The Australian Capital Territory has the highest full-time average at about $119,090 a year, while Tasmania’s is the lowest at about $96,008. Western Australia ($115,825) and New South Wales ($109,658) also sit above the national average. Victoria ($106,137), Queensland ($106,064), South Australia ($102,450), and the Northern Territory ($103,173) are closer to the middle.
These differences reflect the mix of industries and occupations in each state. For example, WA’s mining sector pushes up average earnings, while the ACT’s public service concentration does the same. If you are covered by an award that is common in a high-paying state, your base rate may be higher, which in turn affects any salary continuance insurance that is calculated as a percentage of your salary. The States and territories page lets you compare your location.
Awards set the floor, but not the ceiling
Fair Work’s national minimum wage from 1 July 2026 is $26.44 an hour, or $52,255 a year on a 38-hour week. But most employees are covered by awards that set higher minimum rates. The 2026 annual wage review increased award minimums by 4.75%. That means an award rate can be significantly above the national minimum, and in some industries, well above the national full-time average.
For instance, a professional covered by the Professional Employees Award may have a minimum rate that is closer to the national median than the minimum. Salary continuance insurance is often linked to your ordinary time earnings. If your award rate is high, the insurance premium or benefit may be higher too. Some awards even include specific clauses about income protection or salary continuance. The How the figures are set page explains how the ABS collects its data, which is separate from award rates.
How the national line is drawn
The ABS calculates the full-time average by surveying employers. It includes all full-time adult employees, from CEOs to entry-level workers. The median full-time earnings are lower, at about $90,532 a year, because the average is pulled up by high earners. The all-employees median (including part-time) is about $74,100.
When you place a salary on the line, the tool compares your annual pre-tax salary to the national full-time average. If you earn $100,000, you are about $8,352 below the average. But if you are in Tasmania, that same salary is above the state average. If you are in the ACT, it is below. This context is important when deciding how much salary continuance insurance you need: your cover should reflect your actual earnings, not a national benchmark.
Salary continuance insurance and your pay
Salary continuance insurance (also called income protection) typically pays 50% to 75% of your salary if you are unable to work due to sickness or injury. The premium is often a percentage of your insured salary. If your salary is above the national average, the premium will be higher, but the benefit will also be higher. Conversely, if you are on an award rate that is below the national average, the insurance may be more affordable but provide less cover.
Some awards mandate that employers provide salary continuance insurance for certain roles, especially in high-risk industries. Others leave it to individual arrangement. The ABS data is a snapshot of average earnings, not a measure of total compensation including insurance. But understanding where your salary sits relative to the national line helps you assess whether your salary continuance cover is adequate.
The gender pay gap and state averages
The ABS reports that the gender pay gap in full-time ordinary earnings fell to 11.3% in May 2026. Men’s average full-time ordinary earnings are about $113,412 a year, women’s about $100,594. This gap varies by state. For example, in the ACT, the gap is smaller because of the high proportion of women in public service roles. In Western Australia, the gap is larger due to the male-dominated mining industry.
If you are a woman earning below the national average, your salary continuance insurance benefit will be lower, which can compound financial vulnerability during illness. Some states have introduced measures to address this, but the national data shows the gap persists.
Tax considerations
The ATO taxes salary continuance insurance benefits as ordinary income. If you receive a benefit, it is added to your other income and taxed at your marginal rate. For 2026–27, the tax rates are: nil on the first $18,200, 15% on income up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above that. The Medicare levy of 2% also applies, though some people may be eligible for reductions. If your salary is near the national average, your benefit would fall into the 30% bracket, meaning you keep about 68 cents of each dollar after tax and Medicare. This net amount is what you need to live on, so your insurance should be set accordingly.
Using the tool
The Job medians page gives median earnings by occupation. The Industry medians page shows industry averages. All these figures come from the ABS and Fair Work. Remember that the national line is an average, not a target. Many people earn less, and many earn more. Salary continuance insurance should be tailored to your actual income, not just the average. If your award rate is below the national average, you may need to consider additional cover through your super fund or a private policy.
Conclusion
Your salary is shaped by where you work and what award covers you. The national full-time average is a useful benchmark, but it is not the whole story. When evaluating salary continuance insurance, look at your own ordinary time earnings, not the national figure. Use the resources on this site to see where you stand.