What is a salary sacrifice statement?
A salary sacrifice statement is a formal document from your employer that records the terms of a salary sacrifice arrangement. Under such an arrangement, you agree to forgo part of your pre-tax salary in exchange for benefits like a car, additional superannuation contributions, or electronic devices. The statement typically shows your reduced gross salary, the value of the benefits provided, and any reportable fringe benefits amounts (RFBA) that must be reported to the ATO.
Salary sacrifice is common in both the public and private sectors, especially for not-for-profit organisations where certain benefits may be tax-free. The statement helps you track your total remuneration and ensures compliance with tax and superannuation laws.
How salary sacrifice affects your pay against the national average
The national full-time adult ordinary-time average is about $108,352 per year ($2,083.70 per week), based on the ABS Average Weekly Earnings for May 2026. This figure represents gross earnings before tax and other deductions. When you salary sacrifice, your gross salary is reduced because you are exchanging cash for benefits. As a result, your reported cash earnings will be lower than the national average, even if your total package (cash plus benefits) is higher.
For example, if your base salary is $120,000 and you salary sacrifice $15,000 for a car, your reported gross salary becomes $105,000. That is below the national average of about $108,352. However, your total remuneration including the car may be worth more than $120,000. The ABS average does not include the value of fringe benefits, so your cash pay alone will appear lower.
Comparing to medians and minimums
The full-time median salary is about $90,532 per year (ABS Employee Earnings, August 2025), and the all-employees median is about $74,100. If your salary-sacrificed cash pay falls below these medians, you are still likely earning a total package above the median. 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. Your cash salary after sacrifice cannot fall below this minimum.
State averages and salary sacrifice
State full-time averages vary. For instance, New South Wales averages about $109,658, Victoria about $106,137, and Western Australia about $115,825. If you salary sacrifice in a high-average state like WA, your cash pay may be significantly below the state average, but your total package could still be competitive. The States and territories page provides more detail on regional differences.
Tax implications of salary sacrifice
Salary sacrifice reduces your taxable income, which can lower the tax you pay. For the 2026–27 income year, 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% also applies. By reducing your taxable income, salary sacrifice may move you into a lower tax bracket, saving you money. However, some benefits like cars may attract fringe benefits tax (FBT), which your employer may pass on.
Your salary sacrifice statement will show the RFBA, which is added to your taxable income for certain purposes (e.g., the Medicare levy surcharge). It is important to understand how these amounts affect your overall tax position.
How to use a salary sacrifice statement
When you receive a salary sacrifice statement, check that the reduced gross salary matches your pay slips. The statement should also list the benefits and their values. You can use this information to compare your cash pay to the national average using the Place a salary on the line tool. Enter your reduced gross salary to see how it compares to the full-time average, medians, and minimum wage.
If you are considering salary sacrifice, review the statement to ensure the benefits are worth the reduction in cash. Some benefits, like additional superannuation, can boost your retirement savings without reducing your take-home pay as much as other benefits.
Key points to remember
- The national full-time average is about $108,352 per year (ABS Average Weekly Earnings, May 2026).
- Salary sacrifice reduces your reported gross salary, so your cash pay will likely be below this average.
- Your total remuneration (cash plus benefits) may still be above average.
- The minimum wage sets a floor: your cash salary cannot fall below $52,255 per year.
- Use your salary sacrifice statement to understand your total package and compare it to benchmarks on this site.
For more details on how the figures are calculated, see How the figures are set.