Salary Sacrifice and the National Average Line
A salary sacrifice form is a common tool used by Australian employees to reduce their taxable income by directing a portion of their pre-tax salary towards approved benefits. The most frequent use is for additional superannuation contributions, but it can also cover cars, laptops, or other fringe benefits. The ATO sets the rules, and your employer must have a valid salary sacrifice arrangement in place before any deductions are made.
How the Form Works
When you complete a salary sacrifice form, you agree to forgo part of your future gross salary in exchange for a benefit of equivalent value. Your employer then deducts the sacrificed amount from your gross pay before calculating PAYG withholding tax. This lowers your taxable income, which can reduce the tax you pay each pay period. The benefit itself may be subject to fringe benefits tax (FBT), which your employer may or may not pass on to you.
It is important to note that the gross salary figure you report on this site should be the full amount before any sacrifice. The site’s line is based on the national full-time adult ordinary-time average of $2,083.70 a week, or about $108,352 a year (ABS Average Weekly Earnings, May 2026). This figure represents earnings before any salary sacrifice deductions. Therefore, your position relative to the line remains unchanged by the sacrifice itself.
Comparing Your Pay to the Average
The site allows you to enter your yearly salary before tax and see it expressed as a weekly and hourly amount based on a 38-hour week. It then shows how far you are from the full-time average. For example, if your gross salary is $120,000 a year, you are above the national average of $108,352. If you salary sacrifice $15,000 into super, your taxable income drops to $105,000, but your gross salary for comparison purposes is still $120,000. The site does not adjust for sacrifice.
Other benchmarks are also useful. The full-time median salary is about $90,532 a year (ABS Employee Earnings, August 2025), and the all-employees median is about $74,100. The national minimum wage from 1 July 2026 is $26.44 an hour, or $52,255 a year on 38 hours. These figures help you see where your gross pay sits in the broader distribution.
State and Territory Differences
Your location also matters. The full-time average varies across states and territories, as shown in the on-site notes. For instance, the Australian Capital Territory has the highest average at about $119,090, while Tasmania is lowest at about $96,008. If you work in Western Australia, the average is about $115,825. A salary sacrifice arrangement does not change these averages, but it can affect your net position relative to local benchmarks.
For more detail on how your salary compares in your state, see the States and territories page. You can also Place a salary on the line to see your exact distance from the national average.
Tax Implications of Salary Sacrifice
The 2026–27 resident tax rates apply to your taxable income after sacrifice. The tax-free threshold is $18,200, then 15% up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above that. The Medicare levy of 2% also applies unless you qualify for reductions. By reducing your taxable income through salary sacrifice, you may move into a lower tax bracket, saving money overall. However, the sacrificed amount is not available for other uses, and you must consider the impact on your take-home pay.
What the Form Does Not Do
A salary sacrifice form does not change your gross salary for the purpose of this site’s comparison. It also does not affect your entitlement to the minimum wage or award rates. The Fair Work minimum wage from 1 July 2026 is $26.44 per hour, and award minimums rose by 4.75%. Your salary sacrifice cannot reduce your pay below these minimums. The ATO requires that the arrangement be genuine and that you still receive enough cash salary to cover your obligations.
Using the Site with Salary Sacrifice
When you enter your salary on this site, use the figure on your employment contract or payslip before any sacrifice is deducted. The site will then calculate your weekly and hourly rate on a 38-hour week and show your distance from the full-time average. If you want to see how your taxable income compares, you can adjust the entered amount to reflect the post-sacrifice figure, but that is not the intended use of the tool. The line is based on gross ordinary-time earnings.
For more on how the figures are set, see How the figures are set. This page explains the sources and methodology behind the averages, medians, and minimum wage used on the site.
Summary
A salary sacrifice form is a valuable way to reduce tax and boost savings, especially for superannuation. However, it does not alter your gross salary for comparison with the national average line. Your position relative to the average of $108,352 a year remains based on your full pre-sacrifice salary. Understanding this distinction helps you interpret the site’s results accurately and make informed decisions about your pay and benefits.