Why your pay might sit above or below the national line
The national full-time average ordinary-time earnings, as measured by the ABS Average Weekly Earnings survey for May 2026, is $2,083.70 per week, or about $108,352 per year. This figure is the line that Place a salary on the line uses as a benchmark. But your own pay can differ for several reasons: the state or territory you work in, the award or agreement that covers your role, and even how your salary is structured—including whether you salary sacrifice into super.
State and territory averages
The ABS publishes full-time average ordinary-time earnings for each state and territory. These vary considerably:
- New South Wales: about $109,658
- Victoria: about $106,137
- Queensland: about $106,064
- South Australia: about $102,450
- Western Australia: about $115,825
- Tasmania: about $96,008
- Northern Territory: about $103,173
- Australian Capital Territory: about $119,090
If you work in Tasmania, your pay is likely to sit below the national line, while in the ACT or Western Australia it may be above. These differences reflect the mix of industries, the cost of living, and the demand for labour in each region. For a deeper look, see our States and territories page.
Awards, agreements, and the minimum wage
Fair Work sets the national minimum wage and award rates. From 1 July 2026, the national minimum wage is $26.44 per hour, or $1,004.90 per week on a 38-hour week—about $52,255 per year. Award minimums increased by 4.75% from the previous year. Many employees are covered by awards that set higher minimum rates than the national minimum, but these rates are still often below the national full-time average. For example, a retail or hospitality award may pay around $28–$32 per hour, which translates to $55,000–$63,000 per year—well under the $108,352 line.
On the other hand, enterprise agreements or individual contracts can push pay above the average, especially in industries like mining, construction, or professional services. The national average is an arithmetic mean, so high earners pull it up. The full-time median, from the ABS Employee Earnings survey (August 2025), is about $90,532—a better measure of the typical full-time worker. The all-employees median (including part-time) is about $74,100.
Salary sacrificing into super: pros and cons
One factor that can affect how your pay compares to the national average is salary sacrificing into superannuation. The ABS defines salary sacrifice as an arrangement where an employee agrees to forgo part of their pre-tax salary in return for benefits, such as super contributions. In the Average Weekly Earnings survey, amounts salary sacrificed are excluded from the earnings figures. That means if you salary sacrifice $10,000 per year into super, your reported weekly earnings will be about $192 less than your gross salary, potentially pulling you below the national line even if your total remuneration is higher.
Pros of salary sacrificing into super:
- Reduces your taxable income, so you pay less income tax. For someone earning $108,352, salary sacrificing $10,000 could save about $3,000 in tax (depending on your marginal rate).
- Boosts your retirement savings, with the benefit of compound growth over time.
- Contributions are taxed at only 15% within super (up to the concessional cap), which is lower than most marginal tax rates.
Cons of salary sacrificing into super:
- Reduces your take-home pay, which can affect your cash flow.
- May reduce your eligibility for government benefits that are income-tested, such as the Family Tax Benefit or the Child Care Subsidy.
- You cannot access the money until you meet a condition of release (usually retirement after age 60).
- The ATO caps concessional contributions at $30,000 per year (2026–27). Exceeding the cap incurs additional tax.
Because salary sacrificed amounts are not counted in the ABS average earnings figures, your pay may appear lower than the national average even if your total compensation (salary plus super) is above it. This is an important distinction when comparing your salary to the line.
How the figures are set
The ABS Average Weekly Earnings survey is conducted twice a year, in May and November. It measures the level of average gross weekly earnings for employee jobs, not the earnings of the average person. Changes in the average can be driven by compositional shifts—for example, more high-paid jobs in a particular industry can push the average up even if individual wages don't change. The survey excludes irregular payments like annual bonuses. For more detail, see How the figures are set.
Putting it all together
Your position relative to the national line depends on where you work, what award or agreement covers you, and how your salary is structured. If you salary sacrifice into super, remember that the national average is based on earnings before sacrifice. Use the Place a salary on the line tool to see how your gross salary (before sacrifice) compares, and consider the state and industry medians on our Industry medians page for a more tailored benchmark.
Understanding these nuances helps you interpret the line accurately and make informed decisions about your pay and benefits.