Should I salary sacrifice super?
Salary sacrificing superannuation is a common strategy to boost retirement savings while reducing your current tax bill. But how does it affect where your pay sits against the national full-time average? The short answer is that it doesn't change your gross salary—the figure used to compare against the line—but it does change your take-home pay and tax position.
How salary sacrifice works
Under a salary sacrifice arrangement, you and your employer agree to divert a portion of your before-tax salary into your super fund. These are called employer contributions and are taxed at 15% within the fund, rather than at your marginal income tax rate. The sacrificed amount is not included in your assessable income, so your taxable income decreases.
For example, if your gross salary is $120,000 and you salary sacrifice $10,000, your taxable income becomes $110,000. You still receive the same gross salary for the purposes of the national average line—the ABS measures gross earnings before any sacrifice. So your pay remains at $120,000 against the average of $108,352.
The national full-time average and your pay
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, multiplied by 52). This is the line on this site. Your gross salary, before any salary sacrifice, is what is compared to this figure. Whether you salary sacrifice or not, your position relative to the line stays the same.
However, the median full-time salary is about $90,532, and the all-employees median is about $74,100 (ABS Employee Earnings, August 2025). These are also based on gross earnings. Salary sacrificing does not affect these medians either.
Tax implications of salary sacrificing
The main benefit of salary sacrificing super is tax savings. The 2026–27 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
- 45% above $190,000 Plus the Medicare levy of 2% (with possible reductions).
If your marginal rate is 30% or higher, paying only 15% on the sacrificed amount can save you money. But the contributions count towards your concessional cap ($30,000 per year from 2026–27, including employer mandatory contributions). Exceeding the cap incurs additional tax.
How salary sacrifice affects your take-home pay relative to the average
While your gross salary doesn't change, your net pay does. Salary sacrificing reduces the cash you receive each pay period. If you are comparing your take-home pay to the national average, you need to consider that the average is gross. For instance, someone earning exactly the average of $108,352 and salary sacrificing $10,000 would have a taxable income of $98,352. Their net pay after tax and Medicare would be lower than someone not sacrificing, but their super balance grows faster.
State averages and salary sacrifice
State full-time averages vary. For example, New South Wales is 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, and the Australian Capital Territory about $119,090. Salary sacrificing does not change these state averages either, as they are based on gross earnings.
Should you do it?
Whether you should salary sacrifice super depends on your marginal tax rate, your super cap, and your need for cash now. It does not move your gross pay above or below the national average, but it can improve your retirement savings. If you are close to the average line, salary sacrificing might reduce your taxable income enough to lower your tax bracket, but it won't change your position on the line itself.
For more context on where your salary sits, you can place a salary on the line to see its distance from the average. You can also explore states and territories to compare regional averages.
Minimum wage and salary sacrifice
The national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, or about $52,255 per year on a 38-hour week. Award minimums rose 4.75%. At this level, salary sacrificing may not be beneficial because the marginal rate is low. The tax saving is minimal, and you need the cash for living expenses.
Conclusion
Salary sacrificing super is a tax strategy that does not affect your gross salary used for the national average line. It reduces your taxable income and take-home pay while boosting super. If you are comparing your pay to the average, use your gross salary before any sacrifice. The decision to salary sacrifice should be based on your personal financial situation, tax bracket, and super cap, not on where your pay sits against the average.
For more details on how the figures are set, see How the figures are set.