HomeGuidesSalary packaging

How Salary Packaging Companies in Australia Affect Your Pay Relative to the National Average

The national full-time average is $108,352 per year, but salary packaging reduces taxable income; your gross salary relative to this line depends on your state and award.

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

Understanding Your Pay Against the National Average

When you place a salary on the line, the tool compares your gross yearly pay to the national full-time adult ordinary-time average. That average, from the ABS Average Weekly Earnings survey for May 2026, is $2083.70 per week or about $108,352 per year. But your own pay may sit above or below that line for several reasons, including the state you work in, the award that covers your role, and whether you use salary packaging.

What the National Average Represents

The ABS figure is a mean of full-time adult ordinary-time earnings across all industries and states. It is not a median. The full-time median, from the ABS Employee Earnings survey for August 2025, is about $90,532. The all-employees median is about $74,100. So more than half of full-time workers earn less than the average, because high earners pull the mean up. Men's full-time average is about $113,412; women's is about $100,594.

How Your State Moves the Figure

State averages can differ markedly from the national line. For example, the Australian Capital Territory has a full-time average of about $119,090, while Tasmania sits at about $96,008. Western Australia is above the national line at about $115,825, partly due to mining. Victoria and Queensland are close to the national figure, at about $106,137 and $106,064 respectively. South Australia and the Northern Territory are below the national line. These differences mean that a worker in one state may be above the national average while a worker in the same job in another state is below it. You can see the full breakdown on our states and territories page.

The Role of Awards and Minimum Wages

Fair Work sets the national minimum wage and award rates. From 1 July 2026, the national minimum wage is $26.44 per hour, $1004.90 per week, or about $52,255 per year on a 38-hour week. Award minimums rose by 4.75% from that date. Many awards set rates above the minimum but still well below the national average. For instance, a retail employee on a Level 1 award may earn around $55,000–$60,000 per year, which is below the $108,352 line. A nurse on a higher award classification might earn closer to the average. Your award classification is a key reason your pay may not match the national figure.

What Salary Packaging Companies Do

Salary packaging companies in Australia help employees arrange to receive part of their salary as non-cash benefits, such as a novated lease car, superannuation contributions above the guarantee, or work-related expenses. These benefits are paid from pre-tax income, reducing the employee's taxable income and therefore the amount of tax and Medicare levy they pay. The ATO sets rules on what can be packaged and caps for certain benefits like fringe benefits tax (FBT) exemptions.

Importantly, salary packaging does not change your gross salary. Your employer still reports the same gross amount to the ATO and to this site's comparison tool. What changes is your net take-home pay. So if you earn $80,000 gross and package $10,000 in benefits, your taxable income drops to $70,000, but the line still sees $80,000. That means salary packaging alone does not move your position on the line, but it can affect your after-tax comparison with the national average.

Why State and Award Still Matter

Even with salary packaging, your gross salary is determined by your employer, your industry, and your location. A salary packaging company can help you optimise your net pay, but it cannot raise your gross salary above what your award or enterprise agreement sets. If you work in a state with a high average, like the ACT, your gross pay is more likely to be above the national line. If you work under an award with rates below the national average, your gross pay will sit lower, regardless of packaging.

Using the Tool with Salary Packaging in Mind

When you enter your gross salary into the tool, you see how it compares to the national average, the median, and the minimum wage. If you use salary packaging, consider entering your gross salary (before packaging deductions) to see where you stand. The tool also shows weekly and hourly equivalents based on a 38-hour week. For a more complete picture, you can compare your net position using the tax rates for 2026–27: nil up to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above that, plus the 2% Medicare levy (with possible reductions).

Summary

The national full-time average is a useful benchmark, but your own pay may differ because of your state, your award, and whether you use salary packaging. Salary packaging companies help you keep more of what you earn, but they do not change the gross figure that the line measures. To see where your salary sits, place it on the line and explore the state and industry medians on our industries page.

Questions

What is salary packaging and how does it affect my salary comparison on this site?

Salary packaging lets you pay for certain benefits (like a car or super) from pre-tax income, lowering your taxable income. However, this site compares gross salary before tax. Your gross salary remains the same; only your net pay changes. So salary packaging does not move your gross figure on the line, but it can affect your after-tax position.

How do state averages differ from the national full-time average?

The national full-time average is $108,352. State averages vary: New South Wales $109,658, Victoria $106,137, Queensland $106,064, South Australia $102,450, Western Australia $115,825, Tasmania $96,008, Northern Territory $103,173, Australian Capital Territory $119,090. These differences reflect industry mix and cost of living.

How do award minimums compare to the national average?

The national minimum wage from 1 July 2026 is $52,255 per year for a 38-hour week. Award minimums rose 4.75% and can be higher. Many awards set rates above the minimum but still below the national average. Your award classification can place your pay significantly below the $108,352 line.

Related guides