Understanding Salary Packaging for Not-for-Profit Organisations in Australia
Salary packaging is a common benefit for employees of not-for-profit organisations in Australia. It allows you to sacrifice part of your pre-tax salary for certain benefits, reducing your taxable income and potentially increasing your take-home pay. This page explains how salary packaging interacts with the salary figures shown on this site, including the national full-time average, weekly pay, and hourly rate.
What This Site Shows: Gross Salary Before Tax
The tool on this site accepts a yearly salary before tax. It then shows a weekly and hourly rate based on a 38-hour week, plus the distance from the national full-time average. The national full-time adult ordinary-time average is $2,083.7 a week, or about $108,352 a year, according to the ABS Average Weekly Earnings, May 2026. This is the line on the site. The figures are gross—before any tax, before any salary packaging arrangements.
Salary packaging does not change the gross salary you enter. If you enter $108,352, the site will show that as your gross. The packaging happens after that: your employer reduces your taxable salary by the packaged amount, and the benefit is provided tax-free or with a lower tax rate. So your take-home pay can be higher than the standard tax calculation for that gross salary.
How Salary Packaging Affects Your Take-Home Pay
For not-for-profit employees, salary packaging can be particularly valuable. The Australian Taxation Office allows eligible employees to salary sacrifice up to certain limits for benefits such as a car, laptop, or additional superannuation. The exact caps are set by the ATO and can change. Typically, there is a general cap for fringe benefits, plus additional amounts for meal entertainment and other items. By reducing your taxable income, you may pay less tax and save the Medicare levy of 2%.
For example, consider the 2026–27 resident tax brackets: nil to $18,200; 15% to $45,000; 30% to $135,000; 37% to $190,000; 45% above that. If you salary package $15,000 of your $108,352 gross, your taxable income drops to $93,352. That could save you about $4,500 in tax plus the Medicare levy. The exact saving depends on your circumstances.
Comparing Your Salary to the National Average
The national full-time average is $108,352 a year. The site also shows state averages: New South Wales $109,658; Victoria $106,137; Victoria $106,137; Queensland $106,064; South Australia $102,450; Western Australia $115,825; Tasmania $96,008; Northern Territory $103,173; Australian Capital Territory $103,173. These are full-time ordinary-time averages from the ABS. The site also shows medians: full-time median about $90,532, all-employees median about $74,100 (ABS Employee earnings, August 2025). The national minimum wage from 1 July 2026 is $26.44 an hour, $1,004.9 a week, about $52,255 a year on 38 hours.
If your gross salary is below the average, salary packaging can still help. For example, a full-time employee on $90,532 median, packaging could reduce taxable income further. But the site shows your gross as entered.
Using the Internal Links for More Detail
You can Place a salary on the line to see how your salary compares to the national average. You can also see How the figures are set for more on the ABS and Fair Work sources.
Important Distinctions
Keep the full-time average, medians, and minimum wage distinct. The average is $108,352 a year. The median full-time is $90,532. The minimum wage is $52,255. Salary packaging does not change these benchmarks; it changes your tax outcome.
Summary
Salary packaging is a tax-effective arrangement for not-for-profit employees. It does not alter the gross salary you enter on this site, but it can increase your take-home pay. Use the tool to see where your gross salary sits against the national average, and consult your employer or a tax professional for how packaging affects your specific situation.