Salary sacrifice to super and the national average
When you compare your pay to the national full-time average, you are looking at your ordinary-time earnings before tax. The ABS Average Weekly Earnings, May 2026, puts that figure at $2,083.70 a week, or about $108,352 a year. But if you have a salary sacrifice arrangement for superannuation, your taxable income will be lower than your gross salary. This article explains how salary sacrifice works, why your state or award can shift your pay off the national line, and what that means for your comparison.
What is salary sacrifice to super?
Salary sacrifice to super is a voluntary agreement with your employer to reduce your pre-tax salary and have that amount paid as an employer super contribution. The sacrificed amount is taxed at 15% inside the super fund, rather than at your marginal tax rate. This can be a tax-effective way to save for retirement. However, it does not change the total cost to your employer – your total remuneration package remains the same, just split differently between cash salary and super.
How the national average is set
The national full-time average used on this site comes from the ABS Average Weekly Earnings survey for May 2026. It covers adult full-time employees in ordinary-time earnings, excluding overtime. The figure is $2,083.70 a week, or $108,352 a year when multiplied by 52. This is the line against which you can place a salary on the line. The median full-time earnings are lower, at about $90,532 a year (ABS Employee Earnings, August 2025), and the all-employees median is about $74,100.
Why a state can move the figure
State averages vary significantly. For example, the Australian Capital Territory has the highest full-time average at about $119,090, while Tasmania has the lowest at about $96,008. Western Australia ($115,825) and New South Wales ($109,658) are above the national line, while Victoria ($106,137) and Queensland ($106,064) are close. South Australia ($102,450) and the Northern Territory ($103,173) sit below. These differences reflect industry mix, cost of living, and local labour markets. If you live in a state with a higher average, your pay may need to be higher to stay on the national line. You can compare state figures on the states and territories page.
Why an award can move the figure
Awards set minimum pay rates for specific industries and occupations. From 1 July 2026, award minimums rose by 4.75%. The national minimum wage, set by Fair Work, is $26.44 an hour, $1,004.90 a week, or about $52,255 a year on a 38-hour week. Many awards pay above that. If you are covered by an award, your base rate is determined by that award, not by the national average. For example, a hospitality award might have a lower base rate than a construction award. Your salary sacrifice arrangement cannot reduce your pay below the award minimum. So your gross salary must still meet the award rate, but the sacrificed portion goes to super.
How salary sacrifice interacts with the line
The site compares your gross salary (before any salary sacrifice) to the national average. If you earn $120,000 gross but salary sacrifice $20,000 to super, your taxable income is $100,000. However, the site will show your gross salary of $120,000 against the line. That means your pay is above the national average, even though your take-home pay is lower. Conversely, if your gross salary is $100,000 and you sacrifice $10,000, your taxable income is $90,000 – below the average. But the site still compares the $100,000 gross. So salary sacrifice does not change where your gross pay sits on the line. It only affects your tax and super.
Tax considerations
For the 2026–27 financial 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 is 2% before any reductions. Salary sacrifice reduces your taxable income, potentially moving you into a lower tax bracket. But remember, the sacrificed amount is taxed at 15% in the super fund, which may be lower than your marginal rate. This can be a tax-effective strategy, especially if you are in the 30% or 37% bracket.
Putting it all together
Your pay compared to the national average depends on your gross salary, not your salary-sacrificed amount. But state and award differences affect what gross salary you can expect. If you work in a high-paying state like the ACT or WA, your gross salary is likely above the national line. If you work under a low-paying award, your gross salary may be below the line. Salary sacrifice is a separate decision that affects your tax and super, but not your position on the line. For more details on how the figures are set, see the How the figures are set page.
Summary
- The national full-time average is $108,352 a year.
- State averages range from $96,008 (Tasmania) to $119,090 (ACT).
- Award minimums set a floor, but many awards pay above the national minimum.
- Salary sacrifice reduces taxable income but does not change your gross salary comparison.
- Use the site to see where your gross pay sits against the line, and consider salary sacrifice as a separate tax strategy.