Understanding salary sacrifice flights
Salary sacrifice flights are a common arrangement where an employee gives up part of their pre-tax salary in exchange for flights. These flights are often for work-related travel, such as commuting to remote sites or attending conferences. The ATO classifies this as a fringe benefit, and the tax treatment depends on whether the flights are primarily for work or personal use. Work-related flights may be exempt from fringe benefits tax (FBT), while personal flights are generally subject to FBT. The arrangement must be documented in a salary sacrifice agreement and comply with your award or enterprise agreement.
Where this pay sits against the full-time average
The national full-time adult ordinary-time average is $2,083.70 per week, or about $108,352 per year, based on the ABS Average Weekly Earnings for May 2026. This figure is a gross salary before any deductions or salary sacrifice. If you salary sacrifice flights, your gross salary remains the same for the purpose of comparing to this average. However, your taxable income is reduced, which lowers your take-home pay. The site's line uses gross salary, so salary sacrifice does not change your position relative to that line. For context, the full-time median salary is about $90,532, and the all-employees median is about $74,100 (ABS Employee Earnings, August 2025). The national minimum wage from 1 July 2026 is $26.44 per hour, or $52,255 per year on a 38-hour week.
Tax considerations
Salary sacrifice flights reduce your taxable income, which may move you into a lower tax bracket. The 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 before any reductions. If FBT applies to the flights, the employer pays the tax, but it may be passed on as a reduction in the salary sacrifice amount. The ATO provides guidelines on what constitutes a work-related flight. Always check with your employer or a tax professional.
Award and enterprise agreement rules
Salary sacrifice for flights is not directly regulated by the Fair Work Act, but your award or enterprise agreement may set conditions. For example, some awards require that salary sacrifice arrangements be voluntary and not reduce entitlements such as superannuation or leave. The national minimum wage of $52,255 cannot be sacrificed below that level. State full-time averages vary: New South Wales $109,658; Victoria $106,137; Queensland $106,064; South Australia $102,450; Western Australia $115,825; Tasmania $96,008; Northern Territory $103,173; Australian Capital Territory $119,090. These are gross figures and unaffected by salary sacrifice.
Practical considerations
If you are considering salary sacrifice flights, compare the net benefit against the national average. The site's line of $108,352 is a benchmark for gross pay. Your actual take-home pay after sacrifice will be lower, but you receive flights in return. The arrangement may be more beneficial if you are in a higher tax bracket. For more details, see Place a salary on the line to see where your gross salary sits, or How the figures are set for methodology.
Summary
Salary sacrifice flights reduce your taxable income but do not change your gross salary for comparison to the national full-time average. The average remains $108,352 per year. Understand the tax implications and check your award before entering an agreement.