Understanding salary sacrifice living expenses
Salary sacrifice living expenses is not a specific role or salary figure published in the Average line index. Instead, it refers to an arrangement where an employee agrees to reduce their pre-tax salary in exchange for benefits that cover living costs such as rent, mortgage payments, or utilities. Because the index does not track this arrangement, we cannot provide a precise salary for it. However, we can place it against the national full-time average to give context.
National full-time average
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, multiplied by 52). This is the line against which all salaries on this site are measured. If you salary sacrifice a portion of your salary for living expenses, your taxable income will be lower than this figure. The exact amount depends on the value of the benefits you receive.
Medians and minimum wage
The full-time median salary is about $90,532, and the all-employees median is about $74,100 (ABS Employee Earnings, August 2025). These medians give a sense of what typical workers earn. 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 living expenses would typically be arranged for employees earning above the minimum wage, as sacrificing below the minimum is not permitted.
How salary sacrifice affects take-home pay
When you salary sacrifice for living expenses, your employer pays for those expenses directly from your pre-tax salary. This reduces your taxable income, which can lower the amount of tax you pay. For the 2026–27 income year, the ATO 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
- 45% above $190,000 Plus a 2% Medicare levy (before any reductions). By reducing your taxable income, you may move into a lower tax bracket, increasing your net take-home pay relative to the gross salary. However, the sacrificed amount is not available as cash, so your disposable income may be lower.
State comparisons
Full-time average earnings vary by state and territory. The on-site figures show:
- 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
If you are considering salary sacrifice living expenses, your location matters. For example, in the ACT where the average is highest, sacrificing a portion of a salary above $119,090 could still leave you above the national average. In Tasmania, the lower average means sacrificing could bring your taxable income closer to the median.
Reading the same pay as a year, week, and hour
The on-site tool accepts a yearly salary before tax and displays the equivalent weekly and hourly amounts based on a 38-hour week. For the national average of $108,352, that is $2,083.70 per week and $54.83 per hour. If you salary sacrifice, say, $20,000 for living expenses, your taxable income becomes $88,352, which is $1,699.08 per week and $44.71 per hour. This is below the full-time average but above the full-time median of $90,532. The distance from the line is shown as a percentage or dollar difference.
Practical considerations
Salary sacrifice living expenses is often offered under a salary packaging arrangement, common in not-for-profit and public sector roles. The ATO sets rules on what can be sacrificed and any caps. For example, living expenses such as rent or mortgage payments may be subject to fringe benefits tax (FBT) unless the employer is exempt. The on-site notes do not provide specific FBT rates, so consult a tax professional.
Where to go next
If you want to see how your own salary compares, place a salary on the line. For more detailed guides on salary packaging and tax, visit our Guides section. You can also explore how the figures are set to understand the methodology behind the averages and medians.
Summary
While the index does not publish a specific figure for salary sacrifice living expenses, you can use the national full-time average of $108,352 as a benchmark. The arrangement reduces your taxable income, potentially lowering your tax but also your cash salary. Compare your situation to the state averages, medians, and minimum wage to see where you stand. Remember that the figures on this site are based on ABS and Fair Work data, and individual circumstances may vary.