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Salary packaging government employees: how it affects your take-home pay against the national full-time average

Government employee salaries vary widely by role and classification; salary packaging reduces taxable income but does not change the pre-tax salary used for the 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

Salary packaging for government employees and the national full-time average

Salary packaging is a common benefit for government employees in Australia. It allows you to swap part of your pre-tax salary for goods or services, reducing your taxable income. While this can boost your take-home pay, it does not alter the gross salary figure used to compare against the national full-time average. This page explains how salary packaging works, where typical government salaries sit, and what the ABS data says.

How salary packaging works

Under salary packaging (also called salary sacrificing), you and your employer agree to reduce your gross salary by a set amount each pay period. That amount is then used to pay for approved benefits. The ATO sets the rules, and most government employers follow the Public Sector Salary Packaging Guidelines. Common items include:

  • Novated car leases
  • Superannuation contributions above the compulsory Super Guarantee
  • Laptops, tablets, and phones
  • Childcare fees
  • Work-related expenses

The packaged amount is deducted from your salary before tax is calculated. For example, if your gross salary is $100,000 and you package $15,000, you pay tax on $85,000. Your employer still reports $100,000 as your gross salary to the ATO and to this site’s line.

Where government salaries sit against the 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 is the line used on this site. Government employee salaries vary enormously by classification, agency, and location.

  • Australian Public Service (APS): The APS classification structure ranges from APS 1 (around $50,000–$60,000) to SES Band 3 (over $200,000). Many APS 5 and APS 6 roles fall between $80,000 and $110,000, close to or slightly below the national average. Executive levels (EL1 and EL2) typically earn $120,000–$160,000, above the average.
  • State and territory public servants: Salaries are set by enterprise agreements. For example, a policy officer in Victoria might earn $95,000, while a similar role in the ACT could be $110,000. The on-site notes show the ACT full-time average is $119,090, reflecting a high concentration of federal government employees.
  • Local government: Roles vary widely, but many are covered by the Local Government Award. A graduate officer might earn $65,000, while a manager could earn $130,000.

Because salary packaging does not change your gross salary, your position relative to the line is determined by your base pay. If you earn $108,352 or more, you are at or above the average. If you earn less, you are below.

How the figures are set

The ABS publishes Average Weekly Earnings twice a year, for May and November. The figure used on this site is the May 2026 release for full-time adult ordinary-time earnings. It is an average, not a median. The median full-time salary is lower at about $90,532 (ABS Employee Earnings, August 2025). The national minimum wage from 1 July 2026 is $26.44 per hour, or $52,255 per year on a 38-hour week.

For government employees, enterprise agreements often include salary packaging provisions. The ATO caps certain benefits – for example, the statutory formula for car fringe benefits limits the tax-free amount. Always check your employer’s policy and the ATO guidelines.

State and territory averages

Government employees are spread across all states and territories. The on-site notes provide these full-time averages:

  • 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

If you work in the ACT, your salary is likely above the national average. In Tasmania, it is likely below. These averages include all industries, not just government.

Tax considerations

Salary packaging reduces your taxable income, which can lower the tax you pay. For 2026–27, the 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
  • 45% above $190,000

Plus a 2% Medicare levy (before any reductions). By packaging, you might stay in a lower tax bracket. However, your gross salary is still compared to the line.

Where to find more information

Summary

Salary packaging is a valuable benefit for government employees, but it does not change the gross salary used for comparison with the national full-time average. Your position on the line depends on your base pay. Use the tools on this site to see where you stand.

Questions

What is salary packaging for government employees?

Salary packaging (also called salary sacrificing) lets government employees exchange part of their pre-tax salary for benefits such as a car, laptop, or additional superannuation. The packaged amount is deducted from gross pay before tax, lowering taxable income. The employer still reports the full pre-tax salary to the ATO, but the employee pays less tax on the packaged portion. Common benefits include novated leases, electronic devices, and childcare. The Australian Tax Office (ATO) sets rules on what can be packaged and caps for certain items like cars.

How does salary packaging affect where my pay sits against the full-time average?

The national full-time average of $108,352 a year (ABS Average Weekly Earnings, May 2026) is based on gross pre-tax salary before any packaging. Salary packaging does not change that gross figure – it only redirects part of it. So your position relative to the average remains the same on paper. However, your take-home pay increases because less tax is withheld. For example, a government employee earning $100,000 who packages $15,000 in benefits still has a gross salary of $100,000 for comparison purposes, but pays tax on only $85,000. The line on this site always uses the full pre-tax salary.

Are government employees' salaries typically above or below the national full-time average?

It depends on the role and level. The Australian Public Service (APS) has salary ranges from around $65,000 for entry-level roles to over $200,000 for senior executives. Many professional and managerial government roles sit above the national full-time average of $108,352. For example, an APS 6 officer (mid-level) typically earns between $90,000 and $110,000, close to the average. State and territory government salaries vary; the on-site notes show the ACT full-time average is $119,090, reflecting a high concentration of federal public servants. However, there is no single 'government employee salary' – you need to check specific awards or enterprise agreements.

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