Why your pay may sit off the national line
When you use a salary sacrifice company, your employer redirects part of your pre-tax salary to pay for benefits like extra superannuation, a car lease, or childcare. This reduces your taxable income, but it also means the salary figure reported to the Australian Bureau of Statistics (ABS) for the national full-time average may not reflect your total compensation. The national full-time adult ordinary-time average is $2,083.70 per week, or about $108,352 per year (ABS Average Weekly Earnings, May 2026). That figure is based on ordinary-time earnings before any salary sacrifice deductions.
State differences move the line
Your location plays a big role in where your pay sits relative to the national average. The ABS publishes state full-time averages that can be quite different from the national figure. For instance:
- New South Wales: about $109,658
- Victoria: about $106,137
- Queensland: about $106,064
- South Australia: about $102,450
- Western Australia: about $115,825
- Tasmania: about $96,008
- Northern Territory: about $103,173
- Australian Capital Territory: about $119,090
If you work in Western Australia, your pay is likely above the national line, while in Tasmania it tends to be below. Salary sacrifice companies operate in all states, but the impact on your reported earnings depends on the local industry mix and award coverage. For a deeper look at how your state compares, see our States and territories page.
Awards and the minimum wage
Awards set minimum pay rates and conditions for many industries. From 1 July 2026, the national minimum wage is $26.44 per hour, or $1,004.90 per week on a 38-hour week (about $52,255 per year). Award minimums rose by 4.75% at the same time. Salary sacrifice cannot reduce your pay below the applicable minimum wage or award rate. If your award includes specific rules about salary sacrifice—such as limits on the value of benefits or how they affect overtime—those rules must be followed. This means your take-home pay might be closer to the award rate than the national average, especially in lower-paid industries.
Medians tell a different story
The national full-time median is about $90,532, and the all-employees median is about $74,100 (ABS Employee Earnings, August 2025). These medians are lower than the average because high earners pull the average up. Salary sacrifice is more common among higher-income earners who can afford to forego salary for tax-effective benefits. So if you use salary sacrifice, your taxable income might be closer to the median than the average. For more on how different jobs compare, visit our Job medians page.
Tax and salary sacrifice
Salary sacrifice reduces your taxable income, which can lower the amount of tax you pay. For 2026–27, resident tax rates 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 $190,000. The Medicare levy of 2% applies on top. By reducing your taxable income, salary sacrifice can keep you in a lower tax bracket or reduce your Medicare levy surcharge. However, the Australian Tax Office (ATO) has rules about what benefits can be salary sacrificed and how they are valued. Fringe benefits tax (FBT) may apply to some benefits, which can affect the overall cost to your employer.
Putting it all together
Your pay relative to the national line depends on your state, your award or agreement, and whether you use salary sacrifice. The national average is a useful benchmark, but it doesn't capture the full picture of your compensation. If you want to see where your salary sits, you can Place a salary on the line and compare it to the national full-time average. Remember that the average is updated twice a year (May and November), so check the latest ABS release for the most current figure.