What is salary packaging?
Salary packaging, also known as salary sacrifice, is an arrangement where you agree to forgo part of your pre-tax salary in exchange for benefits such as a car, superannuation contributions, or electronic devices. This reduces your taxable income, meaning you pay less tax and your take-home pay can increase. The benefits are provided by your employer and the arrangement must comply with ATO rules.
How salary packaging interacts with the national average
The national full-time adult ordinary-time average is $2,083.70 per week, or about $108,352 per year (ABS Average Weekly Earnings, May 2026). This figure is based on gross earnings before tax and includes salary sacrificed amounts. So if you salary package, your gross salary as reported to the ABS does not change – the benefit is simply a different form of remuneration. Your position on the line remains the same.
However, salary packaging can make a given gross salary feel higher because you keep more of it after tax. For example, packaging a car or extra super can reduce your tax bill, increasing your disposable income. But the site compares gross salaries, not net. So while your take-home pay may be above average for your gross salary, the gross figure itself is unchanged.
What moves your pay above or below the average?
Several factors affect where your gross salary sits relative to the national average:
Industry and occupation
Certain industries pay above the average. For instance, mining and professional services often exceed the national figure. The industry medians page shows how different sectors compare. Similarly, job medians highlight roles that are above or below the line.
Location
State averages vary. The Australian Capital Territory has the highest full-time average at about $119,090, while Tasmania is lower at $96,008. See the states and territories page for details.
Hours and overtime
The national average is for ordinary-time hours (38 per week). Overtime, penalties, and allowances can push your gross pay higher, but these are not included in the ordinary-time figure. If you regularly work overtime, your total earnings may exceed the average even if your base rate is lower.
Minimum wage and awards
The national minimum wage from 1 July 2026 is $26.44 per hour, or $52,255 per year on 38 hours. Award minimums rose by 4.75% from that date. If your salary is at or near the minimum, it will be well below the average. Fair Work sets these rates.
Salary packaging contact number – what to do
If you are considering salary packaging, the first step is to speak with your employer. Many organisations have a dedicated HR or payroll contact who can explain the options available. Some employers use external salary packaging providers – your HR team can give you the relevant contact number.
The ATO also provides information on salary packaging rules, including caps for certain benefits like cars and super. You can visit the ATO website for guidance, but no single national contact number exists for salary packaging inquiries. It depends on your specific arrangement.
Tax implications of salary packaging
Salary packaging reduces your taxable income, which can lower the amount of tax you pay. For the 2026–27 year, 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 of 2% applies before any reductions. By packaging benefits, you may stay in a lower tax bracket or reduce your overall tax liability.
How the figures are set
The national average is calculated by the ABS from its Survey of Average Weekly Earnings, conducted in May and November each year. The figure used on this site is the full-time adult ordinary-time average. Medians come from the ABS Employee Earnings and Hours survey, released less frequently. The minimum wage is set by Fair Work after annual review. For more detail, see how the figures are set.
About this site
This site helps you compare your salary to the national full-time average. It shows your weekly and hourly pay on a 38-hour week, plus the distance from the line. Salary packaging does not change your gross salary, so your position on the line remains the same regardless of packaging. However, understanding packaging can help you make the most of your income. For more, visit About this site.
Conclusion
Salary packaging is a valuable tool to increase your take-home pay without changing your gross salary. While it does not move your position relative to the national average, it can make your income go further. For a salary packaging contact number, start with your employer. The national average remains a useful benchmark for gross earnings, and factors like industry, location, and hours are what truly move your pay above or below the line.