Should I enter my salary before or after salary sacrifice to superannuation?

Enter the salary stated in your employment contract, which is the gross amount before any salary sacrifice deductions. If you have a salary sacrifice arrangement, your contract salary is already reduced by the sacrificed amount. The site then compares that figure to the national full-time average from the ABS Average Weekly Earnings, May 2026.

Does salary sacrifice to superannuation make my pay look lower than the average?

Yes, because salary sacrifice reduces your taxable salary, the figure you enter will be lower than your total remuneration package. The national full-time average of $108,352 a year is based on actual salaries paid, which already include salary sacrifice arrangements. So if you sacrifice a portion of your salary, your entered salary may fall below the average, even if your total package (including employer super) is higher.

How does the ATO treat salary sacrifice to superannuation for tax purposes?

The ATO treats salary sacrifice contributions to super as employer contributions, which are generally taxed at 15% in the fund, up to the concessional contributions cap. Your taxable income is reduced by the sacrificed amount, potentially lowering your marginal tax rate. The Medicare levy still applies. The site's comparison uses your before-tax salary, so the tax benefit is not reflected in the salary figure itself.

How salary sacrifice to superannuation affects your pay compared to the national average

Salary sacrifice to superannuation and the national average

Salary sacrifice to 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. This reduces your taxable income, but it also lowers the salary figure that appears on your payslip and your PAYG summary. When you place a salary on the line using this site, you enter your yearly salary before tax as per your employment contract. If you salary sacrifice, that contract salary is already the reduced amount.

The national full-time adult ordinary-time average is $108,352 a year (ABS Average Weekly Earnings, May 2026, × 52). This average is calculated from the gross earnings reported by employers, which already reflect any salary sacrifice arrangements in place. So if you salary sacrifice a portion of your salary, your entered salary may be lower than the average, even if your total remuneration—including the super contributions—is higher than average.

How salary sacrifice moves your pay relative to the line

Because the site compares your entered salary to the full-time average, salary sacrifice to superannuation can make your pay appear below the line. For example, if your contract salary is $100,000 and you sacrifice $10,000 to super, your entered salary is $100,000, not $90,000. Wait—that's the opposite: if you sacrifice $10,000, your contract salary is $90,000. So you enter $90,000. That is below the national average of $108,352. But your total package (salary plus super contribution) is $100,000 plus the employer's mandatory super, which might be closer to the average.

However, the site's line is based on ordinary-time earnings, which include salary sacrifice. So the average already accounts for people who sacrifice. Your position relative to the line is a direct comparison of your cash salary to the average cash salary. If you want to see how your total remuneration compares, you would need to add back the sacrificed amount, but the tool is designed for salary before tax as agreed.

State and territory differences

Salary sacrifice to superannuation affects your comparison differently depending on where you work. For instance, the full-time average in the Australian Capital Territory is about $119,090, while in Tasmania it is about $96,008. If you salary sacrifice in a high-average state like the ACT, your reduced salary may still be above the national average but still below the state average. You can explore states and territories to see how your salary compares across regions.

Medians and the minimum wage

The national minimum wage from 1 July 2026 is $26.44 an hour, $1,004.9 a week, about $52,260 a year on 38 hours. If you salary sacrifice, your salary must still meet the minimum wage before sacrifice. The Fair Work minimum applies to the cash salary, not the sacrificed amount. So you cannot salary sacrifice below the minimum wage.

The full-time median is about $90,532 (ABS Employee earnings, August 2025). If your salary after sacrifice is below that median, you are in the lower half of full-time earners. The all-employees median is about $74,100.

Tax implications

The ATO taxes salary sacrifice super contributions at 15% in the fund, up to the concessional cap. Your taxable income is reduced, which may lower your marginal tax rate. For 2026–27, the tax brackets are: nil to $18,200; 15% to $45,000; 30% to $135,000; 37% to $190,000; 45% above that. Plus Medicare levy of 2%. Salary sacrifice can move you into a lower bracket, but the site's comparison does not account for tax savings—it only looks at the before-tax salary.

How the figures are set

The national average is from the ABS Average Weekly Earnings, published twice a year for May and November. The site uses the May 2026 release. Medians come from the ABS Employee earnings survey, August 2025. The minimum wage is from Fair Work, effective 1 July 2026. You can read more about how the figures are set.

Summary

Salary sacrifice to superannuation reduces your cash salary, which can make your pay appear below the national full-time average. However, your total remuneration including super may be higher. The site's tool compares your entered salary directly to the average, so it is important to enter the salary as per your contract. If you have questions about your specific situation, consult a tax professional or refer to the ATO guidelines.