What is salary sacrifice?
Salary sacrifice is an arrangement where you agree to forgo part of your pre-tax salary in exchange for benefits such as additional superannuation contributions, a car, or other non-cash benefits. The sacrificed amount is deducted from your gross salary before tax is calculated, reducing your taxable income. It is regulated by the ATO and must comply with ATO rules, but it does not change the total cost to your employer.
How it relates to the national full-time average
The national full-time adult ordinary-time average is $108,352 a year, based on ABS Average Weekly Earnings for May 2026. That figure is a gross figure before any deductions. So if you salary sacrifice, your gross salary is still the same as your employer pays. The site's line is $2,083.70 a week, and the tool shows you how far your gross pay sits from that line. If you enter your gross salary correctly, your position is accurate.
What would move your pay above or below the average
If your gross salary is above $108,352, you sit above the line. If it is below, you sit below. Salary sacrifice itself does not move your gross pay; it only moves your taxable income. So if you want to compare to the average, you need to use the gross figure.
Common salary sacrifice arrangements
- Superannuation: The most common form. You sacrifice into your super fund. This reduces taxable income but not gross.
- Car: Under a novated lease arrangement, you sacrifice for a car. The gross salary is still the same.
- Other benefits: Such as laptops, gym memberships, or school fees.
All these do not change the gross salary. So the comparison to the average is unaffected.
What the site expects
The site expects a yearly salary before tax. That is gross salary including any sacrificed amounts. If you enter only taxable income, you will underreport. The site shows a week and hour on a 38-hour week, plus distance from the full-time average. The average is $108,352. The median full-time median is $90,532 (ABS Employee earnings, August 2025). The minimum wage is $52,255 (Fair Work, 1 July 2026). These are distinct.
State averages
New South Wales full-time average $109,658; Victoria $106,137; Queensland $106,064; South Australia $102,450; Western Australia $115,825; Tasmania $96,008; Northern Territory $103,173; ACT $119,090. These are from the on-site notes.
How to use the line
Place a salary on the line to see where your gross pay sits. How the figures are set explains how the ABS calculates the average. Guides has more on salary sacrifice.
Summary
Salary sacrifice is a pre-tax deduction that reduces taxable income but not gross. The national average is gross. So your position on the line is based on gross. Enter gross correctly. Salary sacrifice does not move your pay above or below the average; it only affects tax. The site's line is the same for everyone.