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Salary packaging not for profit: how it compares to the national full-time average

The ABS does not publish a separate average for not-for-profit employees, but salary packaging can reduce taxable income, making your effective salary lower than your gross pay when compared to the national full-time average of $108,352.

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 not for profit and the national average

If you work in the not-for-profit sector, salary packaging can change how your pay stacks up against the national full-time average. The ABS Average Weekly Earnings for May 2026 puts the full-time adult ordinary-time average at $2,083.70 a week, or about $108,352 a year. That is the line this site uses. But your gross salary might not tell the whole story if you use salary packaging.

What salary packaging means for your pay

Salary packaging lets you sacrifice part of your pre-tax salary for benefits like a car, laptop, or additional superannuation. For not-for-profit employers, many of these benefits are exempt from fringe benefits tax (FBT) up to certain limits. This means you pay less income tax on the packaged amount, so your take-home pay can be higher than someone on the same gross salary who does not package.

Because the national average is based on gross ordinary-time earnings, your packaged salary might appear lower than the average when you look at the gross figure. But your effective after-tax income could be closer to or even above the average. The site shows your salary as a year, a week, and an hour on a 38-hour week, and then shows the distance from the full-time average. If you salary package, you might want to consider your gross salary for that comparison, since the average is gross.

How the averages and medians compare

The national full-time median is about $90,532 a year (ABS Employee Earnings, August 2025). That is lower than the average, which is pulled up by higher earners. The all-employees median is about $74,100. For men, the full-time average is about $113,412; for women, about $100,594. These figures are all gross.

If your not-for-profit role pays a gross salary below the average, salary packaging can still make it competitive. For example, a gross salary of $90,000 might be below the national average, but after packaging a car or other benefits, your effective income could be higher.

State averages and salary packaging

State full-time averages vary. The Australian Capital Territory has the highest at about $119,090, while Tasmania is lowest at about $96,008. If you work in a not-for-profit in the ACT, your gross salary might need to be higher to match the state average, but salary packaging could bridge the gap. See States and territories for more detail.

The minimum wage and award rates

The national minimum wage from 1 July 2026 is $26.44 an hour, $1,004.90 a week, or about $52,255 a year on 38 hours. Award minimums rose 4.75%. Many not-for-profit employees are covered by awards such as the Social, Community, Home Care and Disability Services Industry Award. Salary packaging can be used on top of award wages, but you must still be paid at least the minimum award rate in cash.

How salary packaging interacts with tax

Resident tax rates for 2026–27 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 that. The Medicare levy is 2% before any reductions. Salary packaging reduces your taxable income, so you may fall into a lower tax bracket. This is especially valuable if your gross salary is near the threshold of the 30% or 37% brackets.

Where to find more information

For a deeper look at how your salary compares across industries, see Industry medians. For guides on understanding your pay, visit Guides. The figures on this site come from the ABS, Fair Work, and the ATO. You can read more about how they are set on How the figures are set.

Key points to remember

  • The national full-time average is $108,352 a year gross.
  • Salary packaging does not change your gross salary, but it lowers your taxable income.
  • The ABS does not publish a separate average for not-for-profit employees.
  • Your effective take-home pay after packaging may be higher than the gross average suggests.
  • Always check the current ATO caps for FBT-exempt benefits in your sector.

If you want to see where your gross salary sits on the line, use the tool on Place a salary on the line. It will show you the week and hour equivalents and the distance from the national average.

Questions

What is salary packaging for not-for-profit employees?

Salary packaging lets you exchange part of your salary for benefits such as a car, superannuation, or electronic devices. For not-for-profit organisations, certain benefits may be exempt from fringe benefits tax (FBT) up to a cap set by the ATO. This can increase your take-home pay even if your gross salary is below the national full-time average.

Does salary packaging affect how my salary compares to the national average?

Yes. When you salary package, your gross salary remains the same, but your taxable income decreases. The national full-time average of $108,352 is based on gross ordinary-time earnings before tax. If you salary package, your effective after-tax income may be higher than someone earning the average without packaging, even if your gross pay is lower.

Are there limits on salary packaging in the not-for-profit sector?

Yes. The ATO sets annual caps on the value of benefits that can be provided without incurring FBT. For public benevolent institutions and health promotion charities, the cap is higher than for other not-for-profits. You should check the current ATO guidelines or speak to your employer for the exact limits.

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