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Salary Packaging Calculator Australia: How Your Pay Compares to the National Average

The national full-time average is $108,352 per year; salary packaging can reduce your taxable income, shifting your effective position relative to this line.

This sits on the Australian full-time average.

Week, hour, and a tax sketch

$2,084 a week · $54.83 an hour if spread over 38 hours

About $83,159 after resident income tax and a 2% Medicare levy.

2026–27 resident rates and a 2% Medicare levy. Not a tax assessment.Open the full line

Where the national line sits

The national full-time adult ordinary-time average is $2,083.70 a week, or about $108,352 a year. This figure comes from the ABS Average Weekly Earnings survey for May 2026 and is the benchmark line on this site. It represents the average weekly ordinary-time earnings of full-time adults across all industries and states, before tax.

But your own pay might sit above or below this line for several reasons. Two of the biggest are the state you work in and the award or agreement that sets your minimum pay. A third factor, salary packaging, can change how much of your salary is counted as taxable income, which affects where you appear on the line.

State differences can shift the line

The national average hides a lot of variation between states and territories. The ABS data shows that the highest full-time average is in the Australian Capital Territory at about $119,090 a year, while Tasmania has the lowest at about $96,008. Western Australia is also above the national line at $115,825, driven by mining and construction. New South Wales and Victoria sit close to the national average, at $109,658 and $106,137 respectively.

If you live in a state with a higher average, your own salary might need to be higher to feel on par with the national line. Conversely, in a lower-average state, the national line can seem out of reach. The States and territories page breaks down each jurisdiction so you can see how your location compares.

Award and minimum wage effects

Fair Work sets the national minimum wage and award minimums. From 1 July 2026, the minimum wage is $26.44 an hour, $1,004.90 a week, or about $52,255 a year on a 38-hour week. Award minimums rose by 4.75% at the same time. Many employees are covered by awards that set higher minimums than the national minimum wage, depending on their industry and role.

If you are paid at an award rate, your salary is likely below the national full-time average. The gap between the award minimum and the national average is substantial – roughly $56,000 a year. This is why the national line can feel distant for workers on award wages, especially in retail, hospitality, and aged care.

How salary packaging interacts with the line

Salary packaging – also called salary sacrificing – lets you exchange part of your pre-tax salary for benefits such as a car, extra superannuation, or work-related items. The ATO sets rules on what can be packaged and caps on tax-exempt amounts. For example, a novated lease on a car can reduce your taxable income by several thousand dollars a year.

When you use a salary packaging calculator, you enter your gross salary before packaging. The calculator then shows how much tax you save and what your new taxable income becomes. On this site, the line compares your gross salary (before packaging) to the national average. So if you package $10,000 of your salary, your gross salary remains the same for the line, but your take-home pay increases because you pay less tax.

This means salary packaging does not move your position on the line, but it does improve your effective income relative to someone on the same gross salary who does not package. The line is a measure of gross earnings, not disposable income.

Using the calculator on this site

To see where your pay sits, Place a salary on the line. Enter your yearly salary before tax. The tool will show your weekly and hourly pay based on a 38-hour week, and how far you are from the national full-time average. You can also compare against state averages, medians, and the minimum wage.

Medians give another perspective

The national full-time median is about $90,532 a year, and the all-employees median is about $74,100. These come from the ABS Employee Earnings survey for August 2025. The median is the middle point – half of employees earn more, half earn less. The average is pulled up by high earners, so the median is often a better reflection of a typical salary. If your salary is above the median but below the average, you are in a common position.

Men's and women's averages

The ABS also publishes separate averages for men and women. Men's full-time ordinary-time average is about $113,412, women's about $100,594. The gap partly reflects different industry and occupation distributions. The national line uses the combined average.

How the figures are set

The How the figures are set page explains the sources and methods. The national average is from ABS Average Weekly Earnings, May 2026, multiplied by 52. Medians are from ABS Employee Earnings, August 2025. The minimum wage is from Fair Work, effective 1 July 2026. All figures are in Australian dollars and are for full-time adult employees unless stated otherwise.

Tax considerations

Your salary before tax is what goes into the calculator. The ATO's 2026–27 tax rates apply: nil tax up to $18,200, 15% on income from $18,201 to $45,000, 30% on $45,001 to $135,000, 37% on $135,001 to $190,000, and 45% above $190,000. The Medicare levy of 2% applies before any reductions. Salary packaging can reduce your taxable income, potentially lowering your marginal tax rate.

Final thoughts

The national full-time average is a useful benchmark, but it is not the whole story. Your state, your award, and whether you salary package all affect how your pay compares. Use the tools on this site to see where you stand and to understand the factors that move the line for you.

Questions

What is a salary packaging calculator and how does it work?

A salary packaging calculator estimates how much tax you can save by sacrificing part of your pre-tax salary for benefits such as a car, superannuation, or childcare. It shows your new taxable income and the resulting take-home pay, allowing you to compare your effective salary against the national full-time average.

How does salary packaging affect my position relative to the national average?

Salary packaging reduces your taxable income, so your reported salary for the purpose of the national average line may be lower than your gross package. However, the value of the benefits you receive can make your total remuneration comparable or higher. The calculator on this site uses your pre-tax salary before packaging to place you on the line.

Which salary packaging items are most common in Australia?

Common salary packaging items include novated leases for cars, additional superannuation contributions, laptops and phones, and in some sectors, childcare or parking. The ATO sets rules on what can be packaged and caps on tax-exempt amounts. Always check with your employer or a tax professional.

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