What is salary sacrifice superannuation?
Salary sacrifice superannuation is an arrangement where you agree to forgo part of your pre-tax salary in exchange for your employer making additional contributions to your super fund. The sacrificed amount is paid into super before income tax is calculated, reducing your taxable income. This can be a tax-effective way to boost your retirement savings, especially if your marginal tax rate is higher than the 15% tax on super contributions.
Importantly, the gross salary figure in your employment contract does not change. Your employer still reports the same gross salary to the ATO, but a portion is redirected as a super contribution. This means that when you enter your salary into a tool that compares your pay to the national full-time average, you should use the gross amount — the figure before any sacrifice is applied.
How salary sacrifice affects your position on the line
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 figure used as the line on this site. If your gross salary is above or below that amount, the tool shows how far you are from the average.
Because salary sacrifice does not alter your gross salary, your position on the line remains the same whether or not you sacrifice part of your pay. For example, if your gross salary is $120,000, you are above the national average regardless of any sacrifice arrangement. The sacrifice only affects your taxable income and take-home pay, not the comparison figure.
State and territory averages
Your location also matters. The full-time averages for each state and territory (from the same ABS release) are:
- 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 your gross salary is above your state’s average, you are above the local line as well. Salary sacrifice does not change that comparison.
Medians and the minimum wage
It is also useful to know where your gross salary sits against the median. The full-time median is about $90,532, and the all-employees median is about $74,100 (ABS Employee Earnings, August 2025). These are different from the average — the median is the middle point, so half of full-time workers earn less and half earn more. If your gross salary is above the median, you are in the higher half of earners.
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 is less common at minimum-wage levels because award conditions often limit such arrangements.
Tax implications of salary sacrifice
For the 2026–27 income year, the tax rates are:
- Nil on income up to $18,200
- 15% on income from $18,201 to $45,000
- 30% on income from $45,001 to $135,000
- 37% on income from $135,001 to $190,000
- 45% on income above $190,000
Plus the Medicare levy of 2% (with possible reductions for low-income earners).
When you salary sacrifice, the sacrificed amount is taxed at 15% inside super (up to the concessional cap of $30,000 for 2026–27). The tax saving is the difference between your marginal rate (plus Medicare) and the 15% super tax. For example, if your marginal rate is 30%, you save 17% (30% + 2% Medicare – 15%). If your marginal rate is 15%, you save only 2% (the Medicare levy). If your taxable income is below $18,200, salary sacrifice may not be beneficial because you pay no income tax.
Using this site to see where your pay sits
To see how your gross salary compares to the national average, use the Place a salary on the line tool. Enter your yearly salary before tax — the figure that appears on your contract or payslip before any salary sacrifice deductions. The tool will show your weekly and hourly amounts (based on a 38-hour week) and how far you are from the full-time average.
You can also explore States and territories to see how your pay compares to the average in your area. For a broader view, check Job medians and Industry medians to see typical earnings in your field.
Summary
Salary sacrifice superannuation is a strategy to reduce tax and boost super, but it does not change the gross salary figure used to compare your pay to the national full-time average. That average, $108,352 per year, is based on gross earnings before any sacrifices. Your position on the line — above, below, or at the average — is determined solely by your gross salary. Use the tools on this site to see where you stand, and consider salary sacrifice as a separate financial decision that affects your take-home pay and retirement savings.