How the national average is set
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). This is the line on Average line. It represents the average ordinary-time earnings of full-time adults across Australia, before tax and before any salary sacrifice arrangements. The figure is updated twice a year, in May and November.
But your pay may sit above or below this line for several reasons. Your state, your award or agreement, and whether you salary sacrifice a car or other benefits can all move your effective pay away from the national average.
State and territory differences
Full-time average earnings vary significantly by state and territory. The ABS data for May 2026 shows:
- Australian Capital Territory: about $119,090
- Western Australia: about $115,825
- New South Wales: about $109,658
- Victoria: about $106,137
- Queensland: about $106,064
- Northern Territory: about $103,173
- South Australia: about $102,450
- Tasmania: about $96,008
If you work in the ACT, your pay is likely above the national line. In Tasmania, it is likely below. These differences reflect the mix of industries, public sector employment, and local economic conditions. Place a salary on the line to see how your pay compares to the national average and your state average.
How your pay method affects earnings
The ABS Employee Earnings and Hours survey (August 2025) shows that the way your pay is set makes a big difference. Employees on individual arrangements earn the highest average weekly total cash earnings ($1,876.50), followed by those on collective agreements ($1,746.10), then award-only employees ($922.20). The national full-time average of $2,083.70 is higher than all these because it includes only full-time adults, while the Employee Earnings figures include part-time employees.
For full-time employees only, the median weekly earnings are $1,887 (about $98,124 per year), and the all-employees median is $1,436 ($74,672 per year). The national full-time average is higher than the median because high earners pull the average up.
If you are on an award, your pay is likely below the national full-time average. 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 by 4.75% from that date. How the figures are set explains the sources in more detail.
What salary sacrificing a car means for your pay
Salary sacrificing a car is a common way to reduce your taxable income. Under an effective salary sacrifice arrangement, you and your employer agree that you will receive less before-tax salary in exchange for a car and its running costs. Your taxable income goes down, so you pay less income tax and Medicare levy. However, your employer may have to pay fringe benefits tax (FBT) on the car's value. You can make an employee contribution to reduce that FBT.
The ATO gives an example of Sam, who earns $65,000 per year. Without salary sacrificing, Sam pays $11,500 in car expenses from after-tax income, leaving a net disposable income of $41,912. With a salary sacrifice arrangement and no employee contribution, Sam's taxable income drops to $47,647, but net disposable income is $41,612 – slightly less. With an employee contribution of $7,000, Sam's taxable income is $60,855, and net disposable income rises to $43,593. The salary sacrifice saves Sam about $1,681 per year compared to no packaging.
This example shows that salary sacrificing a car can increase your net disposable income even though your taxable income falls. But it also means your reported salary (the amount on your payment summary) is lower than your total remuneration package. When comparing your pay to the national full-time average, you need to consider your total package, not just your taxable income. The national average is based on ordinary-time earnings before any salary sacrifice, so if you salary sacrifice, your taxable income may be below the line, but your total remuneration may be above it.
The bottom line
The national full-time average is a useful benchmark, but your actual pay depends on your state, your award or agreement, and any salary sacrifice arrangements. Salary sacrificing a car can improve your take-home pay, but it also changes how your pay compares to the national average. Use the tools on this site to see where you sit. States and territories breaks down averages by location, and Guides offers more detail on how pay is set.
Remember: the national average is an average, not a target. Many people earn above or below it. The important thing is to understand your own pay and how it is structured.