How salary insurance relates to the national average
Salary insurance – also called income protection – is designed to replace a portion of your income if you can’t work because of illness or injury. The amount you can insure and the premium you pay are tied to your own salary, not a national figure. But knowing where your pay sits against the Australian full-time average helps you understand whether your insurance is keeping pace with typical earnings.
The benchmark used on this site is the national full-time adult ordinary-time average from the ABS Average Weekly Earnings, May 2026: $2,083.70 per week, or about $108,352 per year. This is the line that appears on the salary scale. The full-time median is lower at about $90,532, and the all-employees median is about $74,100 (ABS Employee Earnings and Hours, August 2025). The national minimum wage from Fair Work, effective 1 July 2026, is $26.44 per hour, $1,004.90 per week, or about $52,255 per year on a 38-hour week.
What moves your pay above or below the average
Several factors push individual salaries above or below the national average. Occupation is a major one – managers and professionals have the highest hourly earnings, according to the ABS. Industry also matters: mining, information media, and professional services tend to pay above the average, while retail and hospitality pay below. Geography plays a role too. The state full-time averages from the ABS show a wide range:
- Australian Capital Territory: about $119,090
- Western Australia: about $115,825
- New South Wales: about $109,658
- Victoria: about $106,137
- Queensland: about $106,064
- Northern Territory: about $103,173
- South Australia: about $102,450
- Tasmania: about $96,008
Gender also affects the average. Men’s full-time ordinary-time average is about $113,412, while women’s is about $100,594. Experience, education, and whether you work in the public or private sector further shift the figure.
If your salary is above the national average, your salary insurance premium will be higher because it’s usually a percentage of your insured amount. The potential benefit is also higher – typically up to 75% of your pre-tax salary. For someone on the average, that’s about $81,264 per year. If your salary is below the average, your premium is lower, but your benefit may be closer to the minimum wage floor. In that case, government support like the Disability Support Pension or Newstart might fill some of the gap.
Tax and salary insurance
Premiums for salary insurance held outside super are generally tax-deductible. Benefits are treated as assessable income. The 2026–27 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 adds 2% for most people. The average earner of $108,352 falls into the 30% bracket, so a benefit of 75% of that salary would be taxed at that marginal rate plus Medicare. That means the after-tax benefit is less than 75% of your pre-tax salary.
Using the site’s tools
You can place a salary on the line to see how it compares to the national average, the median, and the minimum wage. The chart will show your weekly and hourly figures based on a 38-hour week. You can also explore states and territories to see how averages differ across Australia. For more detail on how the figures are set, see How the figures are set.
Summary
Salary insurance is personal – it’s based on your own pay, not the average. But the national average gives you a reference point. If you earn above it, you’ll likely pay more for insurance but can protect a higher income. If you earn below, your insurance costs less but your benefit is lower. Understanding where you sit on the scale helps you decide whether your cover is adequate.