How salary sacrifice affects your position on the line
When you enter your yearly salary before tax into the tool, the site compares it to the national full-time adult ordinary-time average of $2,083.70 per week, or about $108,352 per year (ABS Average Weekly Earnings, May 2026). This average is based on gross earnings — the amount before any salary sacrifice deductions. So if you salary sacrifice a laptop, your gross salary stays the same, and your distance from the average does not change.
However, salary sacrifice reduces your taxable income. For example, if you earn $110,000 and sacrifice $3,000 for a laptop, your taxable income becomes $107,000. Your gross salary of $110,000 still sits above the average, but you pay less tax. The site does not adjust for salary sacrifice; it shows where your gross salary lies relative to the line.
What the ATO says about salary sacrifice laptops
The Australian Tax Office allows employees to salary sacrifice a laptop if it is primarily for work-related use. The arrangement must be part of a formal salary sacrifice agreement with your employer. The sacrificed amount is not included in your assessable income, but your employer may need to pay fringe benefits tax (FBT) unless the laptop qualifies as an exempt property fringe benefit (for example, if it is used mainly for work). You should consult the ATO or a tax adviser for your specific situation.
How this compares to the national minimum wage and award rates
The national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, or about $52,255 per year on a 38-hour week (Fair Work). Award minimums rose by 4.75% from that date. Salary sacrifice cannot reduce your cash wages below these minimums. If your gross salary is already close to the minimum, sacrificing a laptop could push your taxable income below the tax-free threshold ($18,200 for 2026–27), but your gross salary must still meet the minimum wage.
State and territory averages
The national full-time average masks differences across Australia. For instance, the Australian Capital Territory has the highest full-time average at about $119,090, while Tasmania has the lowest at about $96,008. If you salary sacrifice a laptop, your gross salary remains the same for comparison against these state averages. You can explore how your pay compares in different regions on the States and territories page.
Medians versus averages
The ABS Employee Earnings report (August 2025) gives a full-time median of about $90,532 and an all-employees median of about $74,100. These medians are lower than the average because high earners pull the average up. Salary sacrifice does not affect your median comparison either — it is based on gross earnings. If your gross salary is above the median but below the average, you are earning more than half of full-time workers but less than the typical full-time earner.
Tax brackets and take-home pay
For 2026–27, the 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 adds 2% (with possible reductions). Salary sacrifice reduces the income subject to these rates, so you may drop into a lower bracket or reduce your average tax rate. For example, a gross salary of $110,000 puts you in the 30% bracket. Sacrificing $3,000 for a laptop brings taxable income to $107,000, still in the 30% bracket but with a lower tax bill.
Practical considerations
- The laptop must be primarily for work use to qualify for salary sacrifice under ATO rules.
- Your employer may have a policy on which items can be sacrificed.
- Salary sacrifice is not available to everyone; it depends on your employment type and award.
- The site’s tool accepts a yearly salary before tax. It shows a week and an hour on a 38-hour week, plus distance from the full-time average. It does not account for salary sacrifice arrangements.
If you want to see how your gross salary compares to the line, Place a salary on the line. For more on how the figures are set, see How the figures are set.
Summary
Salary sacrificing a laptop does not move your gross salary relative to the national full-time average. It changes your taxable income and net pay, but the comparison on this site uses the gross figure you enter. Always check your award or agreement to ensure salary sacrifice does not breach minimum wage or other conditions.