Salary sacrifice in Western Australia
Salary sacrifice is an arrangement where you agree to forgo part of your pre-tax salary in exchange for a benefit such as a car, extra superannuation, or electronic devices. In Western Australia, this is a common strategy to reduce taxable income, especially for higher earners. But how does it affect where your pay sits against the national full-time average?
The national full-time average and WA
The national full-time adult ordinary-time average is $2,083.70 per week, or about $108,352 per year, according to the ABS Average Weekly Earnings for May 2026. Western Australia's full-time average is higher at about $115,825, reflecting the state's strong resources sector and higher wages in mining and construction. This means the typical WA full-time worker earns about $7,473 more per year than the national average.
How salary sacrifice changes the picture
The tool on this site asks for your yearly salary before tax. If you salary sacrifice, the amount you enter may be lower than your total remuneration. For example, if you earn $120,000 but sacrifice $15,000 into super, you might enter $105,000. That would place you below the national average of $108,352, even though your total package is above it. The ABS includes salary sacrifice amounts in its measure of ordinary-time earnings, so the national average already accounts for these arrangements.
Tax implications of salary sacrifice
Salary sacrifice reduces your taxable income, which can lower the amount of tax you pay under the 2026–27 resident tax rates. The tax-free threshold is $18,200, then 15% up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above that. The Medicare levy of 2% also applies. By sacrificing, you may drop into a lower tax bracket. However, the ATO caps certain sacrifices, such as concessional super contributions (currently $30,000 per year including employer contributions).
Award and minimum wage considerations
The national minimum wage from 1 July 2026 is $26.44 per hour, or $1,004.90 per week on a 38-hour week, about $52,255 per year. Award minimums rose 4.75% from that date. Salary sacrifice cannot reduce your pay below the relevant award or minimum wage. Fair Work requires that your base salary after sacrifice still meets the minimum entitlements. In WA, the state industrial relations system also applies to some workers, but the national system covers most.
Comparing your salary after sacrifice
If you are considering salary sacrifice, use the tool to see where your reduced salary sits. You can also compare to the WA full-time average of $115,825. Remember that the tool shows your distance from the national line. A salary sacrifice arrangement might move you below the line, but your total compensation could still be above it. For a more complete picture, consider your total remuneration package.
Internal links for more detail
- Place a salary on the line to see how your pay compares.
- Western Australia for state-specific averages and insights.
How the figures are set
The national average is from the ABS Average Weekly Earnings, May 2026. Medians come from the ABS Employee Earnings, August 2025. The minimum wage is from Fair Work, effective 1 July 2026. These sources are independent and updated twice a year for the average, and annually for the minimum wage. The tool uses these to give you a reliable benchmark.
Final thoughts
Salary sacrifice in WA can be a smart tax strategy, but it changes how your pay compares to the national average. Always consider your gross remuneration, not just your taxable salary. The national line of $108,352 is a useful reference point, but your personal financial situation depends on your total package and tax position.