Salary packaging meal entertainment and the national average
Salary packaging for meal entertainment is a common benefit in Australia, particularly in the healthcare and not-for-profit sectors. It allows employees to pay for meals and entertainment from their pre-tax salary, reducing their taxable income. But how does this affect where your pay sits against the national full-time average of $108,352?
What the national average represents
The national full-time adult ordinary-time average of $2083.70 per week ($108,352 per year) is calculated by the ABS from its Average Weekly Earnings survey for May 2026. This figure is the gross salary before any salary packaging or other benefits. It is the line on this site. Your gross salary is what you compare to this average. Salary packaging does not change that gross figure.
How salary packaging meal entertainment works
Under ATO rules, meal entertainment includes food, drink, and entertainment such as restaurant meals, entertainment venue tickets, and associated costs. Your employer may offer this as a fringe benefit. If you salary package it, you reduce your taxable income by the amount of the benefit. For example, if you salary package $2000 per year for meal entertainment, your taxable income drops by $2000. Your gross salary stays the same. Your net pay rises because you pay less tax.
Where the benefit can move your effective pay
While your gross salary does not change, your after-tax income can be higher than someone on the same gross without packaging. This can make your total compensation package more attractive. However, the national average is a gross figure. So if your gross salary is $108,352 and you salary package $5000 for meal entertainment, your taxable income becomes $103,352. You still sit exactly on the average line for gross pay. But your net pay is higher than the average net pay for that gross salary.
Limits and rules
The ATO caps the amount you can salary package for meal entertainment in certain sectors. For public hospitals and charities, there is a $9,010 cap per year (as of 2026–27) for meal entertainment and other benefits combined. For-profit employers may offer meal entertainment but must pay FBT. The benefit is not available to everyone. Check your award or enterprise agreement.
Comparison with medians and minimum wage
The full-time median is about $90,532 (ABS Employee earnings, August 2025). The all-employees median is about $74,100. The national minimum wage from 1 July 2026 is $26.44 per hour, $1004.90 per week, $52,255 per year on 38 hours. Salary packaging meal entertainment is more common above the median, especially in sectors like healthcare where salaries often sit above the median but below the average.
State averages
State full-time 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. If you work in a state with a higher average, your gross salary may need to be higher to sit above the line. Salary packaging does not change that comparison.
Tax implications
Resident tax rates for 2026–27: nil to $18,200; 15% to $45,000; 30% to $135,000; 37% to $190,000; 45% above. Medicare levy 2% before reductions. By reducing your taxable income, salary packaging can lower your marginal tax rate. For example, if your gross salary is $110,000, you are in the 30% bracket. Packaging $5000 drops taxable income to $105,000, still in 30% bracket, but you save $1500 in tax (30% of $5000). This increases your net pay.
What moves your pay above or below the average
Your gross salary is the primary factor. Salary packaging meal entertainment does not move your gross. It can make your net pay higher, but the line on this site is gross. To move above the average, you need a higher gross salary. To move below, a lower gross. The benefit is a secondary factor that affects your overall compensation but not the comparison on the line.
Internal resources
For more on how your salary compares, see Place a salary on the line. To see how averages differ by state, visit States and territories. For industry medians, see Industry medians.
Summary
Salary packaging meal entertainment is a valuable benefit that can increase your take-home pay without changing your gross salary. It does not directly move your pay above or below the national full-time average of $108,352, but it can make your total package more competitive. Always check the ATO rules and your employer's policy.