Understanding salary sacrifice super
Salary sacrifice super is an arrangement where you agree to forgo part of your pre-tax salary in return for additional superannuation contributions from your employer. The sacrificed amount goes directly into your super fund and is taxed at the concessional rate of 15% (or 30% if your income plus contributions exceed $250,000), rather than at your marginal tax rate. This can reduce your taxable income and increase your retirement savings.
For the purpose of comparing your pay to the national full-time average, it is important to understand what figure you should enter into the tool. The tool asks for your yearly salary before tax. That means the gross salary your employer pays you, including any amount you have chosen to salary sacrifice. Even though you do not receive that money as cash, it is still part of your total remuneration package. The ABS Average Weekly Earnings measure used for the site’s line also includes salary sacrifice amounts, because it captures gross wages and salaries before any deductions.
How salary sacrifice super affects your pay comparison
If you salary sacrifice super, your gross salary (the amount you enter) stays the same as your base salary. However, your take-home pay is lower because the sacrificed portion goes to super. This can make your pay relative to the average appear higher than your cash flow might suggest. For example, if your base salary is $110,000 and you sacrifice $10,000 into super, your taxable income becomes $100,000, but the tool still compares $110,000 against the national full-time average of $108,352. That puts you above the line, even though your cash salary is below it.
Conversely, if you only consider your cash salary (the amount after sacrifice), that figure would be below the average. But the correct comparison uses the gross figure. The site’s line is the national full-time adult ordinary-time average, which is $108,352 per year (ABS Average Weekly Earnings, May 2026). The full-time median is about $90,532 (ABS Employee earnings, August 2025). So if your gross salary is above $108,352, you are above the average; if below, you are below.
What moves your pay above or below the average
Several factors can shift your pay relative to the average, and salary sacrifice super is one of them. Because the tool uses gross salary, salary sacrifice does not change the number you enter. But it does affect your net position. Other factors include:
- Award increases: The national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.9 per week, about $52,255 per year on 38 hours. Award minimums rose 4.75%. If you are on an award, your base rate may be below the average.
- Gender pay gap: Men’s full-time ordinary-time average is about $113,412; women’s about $100,594. This gap means women are more likely to be below the average.
- State differences: Full-time averages vary by state. For example, the ACT average is about $119,090, while Tasmania is about $96,008. Your location can move you above or below the national line.
- Industry and occupation: The site provides job medians and industry medians. Some industries pay well above the average, others below.
Salary sacrifice super can also affect your tax position, which may influence decisions about whether to sacrifice more or not. The 2026–27 tax rates are nil to $18,200, then 15% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above. The Medicare levy is 2%. By reducing your taxable income, salary sacrifice can lower your tax bill and potentially keep you in a lower bracket.
Using the site’s tools
To see where your pay sits, place a salary on the line and enter your gross salary before tax. The tool will show your weekly and hourly equivalent on a 38-hour week and the distance from the full-time average. You can also explore how the figures are set to understand the sources: the average from ABS Average Weekly Earnings, May 2026; medians from ABS Employee earnings, August 2025; and the minimum wage from Fair Work, from 1 July 2026.
Remember that salary sacrifice super does not change the gross figure you enter, but it does change your cash flow and tax outcome. If you are comparing your pay to others, use the gross figure for a fair comparison. The site’s line is the national full-time average, and your position relative to it depends on your total remuneration package, not just your take-home pay.