Salary packaging and the national average
Salary packaging options in Australia let you swap part of your pre-tax salary for benefits like a car, extra super, or work-related items. The idea is to lower your taxable income, which can boost your take-home pay. But how does this stack up against the national full-time average? The ABS Average Weekly Earnings for May 2026 puts the full-time adult ordinary-time average at $2083.70 a week, or about $108,352 a year. That is the line on this site. If you earn around that figure, salary packaging might shift your tax position.
How salary packaging changes your taxable income
When you salary package, your employer pays for the benefit from your pre-tax salary. That reduces the amount the ATO sees as your income. For the 2026–27 year, the tax-free threshold is $18,200. Then you pay 15% on income up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above that. Plus a 2% Medicare levy (though some people get a reduction). If your salary is the national average of $108,352, you are in the 30% bracket. Packaging $10,000 into super, for example, would cut your taxable income to $98,352, saving you $3,000 in tax plus the Medicare levy. Your take-home pay would rise by that amount, though the super is locked away until retirement.
Take-home pay sketch for an average earner
Without packaging, a single resident earning the full-time average of $108,352 would pay about $23,667 in tax (using the 2026–27 rates) plus $2,167 in Medicare levy, leaving a take-home of roughly $82,518 a year, or $1,587 a week. If they salary package a car through a novated lease worth $12,000 a year (including running costs), their taxable income drops to $96,352. Tax falls to about $19,467, Medicare to $1,927, so take-home becomes $74,958 plus the car benefit. The net cash in hand might be lower, but the car is covered. The key is that salary packaging can make your effective pay higher than someone on the same gross salary who does not package.
Comparing to medians and minimums
The full-time median from the ABS Employee earnings survey (August 2025) is about $90,532 a year. The all-employees median is about $74,100. The national minimum wage from Fair Work (1 July 2026) is $26.44 an hour, or $52,255 a year on 38 hours. Salary packaging is less common at lower incomes because the tax savings are smaller and many benefits attract FBT. But for those on the average or above, it can be a useful tool. Place a salary on the line to see where your pay sits.
State differences and packaging
Full-time averages vary by state. For instance, the Australian Capital Territory has the highest at about $119,090, while Tasmania is lowest at $96,008. If you work in the ACT and earn the state average, you are in the 30% bracket too, but closer to the 37% threshold. Packaging could push you below $135,000, saving more tax. In Western Australia ($115,825) or New South Wales ($109,658), similar logic applies. See States and territories for a full breakdown.
What the ATO allows
The ATO governs salary packaging through fringe benefits tax (FBT) rules. Some benefits, like super contributions (up to the concessional cap of $30,000 for 2026–27), are exempt from FBT. Others, like cars, have a statutory formula for FBT. Employers often pass the FBT cost to you, reducing the benefit. Public hospitals and charities have caps on FBT-exempt items. Always check your employer's policy and the ATO's guidelines. How the figures are set explains the sources we use for averages and tax.
Is salary packaging right for you?
It depends on your income, your spending needs, and the benefits on offer. For someone on the national average, packaging can increase take-home cash if you choose FBT-exempt items like super. For a car, the net benefit may be smaller after FBT. The best approach is to model your situation using the tax brackets above. Remember, salary packaging reduces your gross income for things like super guarantee contributions and some government benefits. Use the Guides for more on take-home pay calculations.
Final thoughts
Salary packaging options in Australia are a legitimate way to manage your tax and get benefits you would otherwise pay for with after-tax dollars. Against the national full-time average of $108,352, they can make a noticeable difference to your weekly pay. But the exact outcome depends on your package, your employer, and your tax bracket. The ABS, Fair Work, and the ATO provide the figures we rely on here. No single number captures every scenario, so treat this as a starting point.