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Salary Packaging Services: How They Shift Your Pay Off the National Line

Salary packaging services adjust how your salary is structured, but your base pay before packaging is compared to the national full-time average of $108,352 a year.

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 Services and the National Average

Salary packaging services let you swap part of your before-tax salary for benefits like a car, extra super, or work-related expenses. This can reduce your tax bill, but your base salary before packaging is what the ABS measures in its Average Weekly Earnings. The national full-time adult ordinary-time average sits at $2,083.70 a week, or about $108,352 a year (ABS, May 2026). That figure is the line on this site. Your own salary, before any packaging, is compared to that line.

How State and Award Factors Move the Figure

Your pay can differ from the national line for two main reasons: the state you work in and the award or agreement that covers you. State full-time averages vary widely. For example, the Australian Capital Territory has the highest full-time average at $119,090, while Tasmania’s is $96,008. If you work in a high-average state like Western Australia ($115,825), your pay is likely above the national line. In a lower-average state like South Australia ($102,450), it may sit below.

Awards also set minimum rates that can push your pay above or below the national average. The Fair Work Commission raised award minimums by 4.75% from 1 July 2026. The national minimum wage is now $26.44 an hour, $1,004.90 a week, or about $52,255 a year on 38 hours. Many awards pay more than that. If your award rate is above the national average, your salary will sit above the line. If it is below, you may be below the line, even after packaging.

Salary Packaging and Your Line Position

When you use salary packaging services, your gross salary (the amount before any sacrifice) is what appears on your payslip and what the ABS counts. The packaging reduces your taxable income, but it does not change the figure that this site uses to compare you to the national average. For example, if your base salary is $100,000 and you package $15,000 for a car, your taxable income falls to $85,000, but your line position is still based on $100,000. That is why the site asks for your yearly salary before tax.

The tax brackets for 2026–27 show how packaging can save you money: nil tax up to $18,200, then 15% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above that. The Medicare levy adds 2% before any reductions. By packaging, you may drop into a lower bracket, but your line on this site stays at your original gross.

Medians and Averages: What They Mean for You

The national full-time average is $108,352, but the full-time median is about $90,532 (ABS Employee Earnings, August 2025). That means half of full-time workers earn less than that median. The all-employees median is about $74,100. If your salary after packaging is below these medians, you are in the lower half of earners. But remember, the line on this site uses the average, not the median. Your position relative to the line shows how your gross pay compares to the mean of all full-time workers.

Men’s full-time average is about $113,412; women’s is about $100,594. These gaps reflect industry and occupation differences. Salary packaging services are more common in some sectors, such as healthcare and not-for-profit, where employers offer benefits like salary sacrifice for cars or super. If you work in a sector with high packaging uptake, your gross pay may still be above the national average, but your taxable income is lower.

Using This Site to See Where You Sit

To see where your pay sits against the national line, place a salary on the line. Enter your yearly salary before tax. The tool will show your weekly and hourly figures on a 38-hour week, plus the distance from the full-time average. You can also compare by states and territories to see how your state’s average affects your position. If your award or agreement sets your rate, check the job medians or industry medians for a broader view.

Remember, salary packaging services do not change the gross figure that the ABS uses. Your line position is based on your pay before any packaging. If you are on an award, your minimum rate must be at least the national minimum wage or the award rate, whichever is higher. The Fair Work Commission sets these rates, and they are separate from the ABS averages.

Why the Figure Can Move Off the Line

Your pay can move off the national line for several reasons. First, your state’s economy. Western Australia’s mining sector pushes its average high; Tasmania’s smaller economy keeps its average lower. Second, your award or enterprise agreement. Some awards pay well above the minimum, especially in skilled trades or professional roles. Third, your industry. The ABS publishes industry medians that show wide variation. Fourth, your gender. The gender pay gap means women’s average is about $12,800 less than men’s. Salary packaging can help reduce tax but does not close that gap.

If you are considering salary packaging, check with your employer or a provider. The ATO has rules on what can be packaged and caps for some benefits like cars. Your gross salary must still meet any award minimums. The national line is a useful benchmark, but your actual pay depends on many factors. This site helps you see where you stand.

For more on how the figures are set, see How the figures are set. The ABS publishes Average Weekly Earnings twice a year, for May and November. The latest available is May 2026. The medians come from the ABS Employee Earnings survey, August 2025. The minimum wage is from Fair Work, effective 1 July 2026. Use these to understand your position.

In summary, salary packaging services let you restructure your pay for tax benefits, but your base salary before packaging is what counts against the national average. State and award factors can move your pay above or below the line. Use the tools on this site to see where you sit.

Questions

What are salary packaging services?

Salary packaging services allow you to exchange part of your before-tax salary for benefits such as a car, super contributions, or childcare. This reduces your taxable income, but your gross salary before packaging is still measured against the national full-time average. The ATO sets rules for what can be packaged, and your employer must offer it under a valid salary sacrifice arrangement.

How does salary packaging affect my pay compared to the national average?

Your base salary before packaging is what the ABS records in Average Weekly Earnings. If you package part of your salary, your taxable income falls, but the ABS figure remains your gross pay. The national full-time average of $108,352 a year (May 2026) is based on ordinary-time earnings before any packaging. Your take-home pay may be higher after packaging, but your line position on this site uses your gross salary.

Can salary packaging change how my award or state average applies?

Yes. Award minimums set a floor for your base pay, and salary packaging cannot reduce your pay below the award rate. For example, the national minimum wage from 1 July 2026 is $26.44 an hour. State full-time averages also differ; for instance, Western Australia's average is $115,825, while Tasmania's is $96,008. If you package salary, your gross pay must still meet the award or agreement rate, and your state's average may pull your line higher or lower.

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