Smart salary packaging and the national full-time average
Smart salary packaging is a way to structure your pay so that certain expenses – such as a car, superannuation above the guarantee, or work-related items – are paid from your pre-tax salary. This reduces your taxable income and can increase your take-home pay. But how does it sit against the national full-time average? The short answer is that the precise figure for a packaged salary is not published in this index. Instead, we place your question against the national full-time average of $108,352 a year ($2,083.70 a week), based on ABS Average Weekly Earnings for May 2026.
What the national line represents
The line on this site is the full-time adult ordinary-time average. It is a gross figure before any salary sacrifice or packaging. The ABS collects earnings data from employers and reports the total ordinary-time earnings of full-time employees. That means the average includes people who may or may not use salary packaging, but the figure itself is not adjusted for packaging. When you enter a packaged salary into the tool, it compares your gross packaged amount (the salary you agree with your employer) against this national benchmark.
State variations
Your location can move the comparison. State full-time averages differ, and salary packaging rules may vary slightly by jurisdiction (for example, fringe benefits tax treatment is federal, but some states have their own payroll tax thresholds). The state averages from the same ABS release are:
- New South Wales: $109,658
- Victoria: $106,137
- Queensland: $106,064
- South Australia: $102,450
- Western Australia: $115,825
- Tasmania: $96,008
- Northern Territory: $103,173
- Australian Capital Territory: $119,090
If you work in Western Australia or the ACT, your packaged salary might be further from the state average than from the national line, because those states have higher averages. In Tasmania, the opposite is true. The tool always uses the national line as the reference, but you can see state comparisons on the States and territories page.
Award and minimum wage floors
Even with smart salary packaging, your cash wage cannot fall below the relevant minimum. The national minimum wage from 1 July 2026 is $26.44 an hour, $1,004.90 a week, or about $52,255 a year on a 38-hour week (Fair Work). Award minimums rose by 4.75% from that date. If your packaged salary is above the national average, you are well clear of the floor. But if your packaged amount is lower, the award or minimum wage sets a lower bound. The index does not adjust for packaging, so your packaged salary is compared with the gross average, but you must still meet legal minimums.
Tax effects of salary packaging
Salary packaging reduces your taxable income, which can move you into a lower tax bracket. For 2026–27, the 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% (before any reductions). If your packaged salary brings your taxable income below $135,000, you pay 30% instead of 37% on the portion above $135,000. That can significantly boost take-home pay. However, the national average of $108,352 sits in the 30% bracket, so many packaged salaries will also be in that bracket. The ATO administers fringe benefits tax on some packaged items, which your employer may pass on. The index does not model tax; it shows gross salary.
Medians and the all-employees figure
For context, the full-time median is about $90,532 (ABS Employee Earnings, August 2025). The all-employees median (including part-time and casual) is about $74,100. These are also gross figures. If your packaged salary is above the median, you are earning more than half of full-time workers. But remember, the median does not reflect packaging either.
How the tool works
The on-site tool accepts a yearly salary before tax. It shows a week and an hour on a 38-hour week, plus distance from the full-time average. It does not ask for packaging details. You enter your gross packaged salary, and the tool compares it with the national line. For more on how the figures are set, see How the figures are set.
Why state or award can move the figure
Even if your packaged salary is the same as the national average, your effective position changes if you are in a high-cost state or under an award with different penalty rates. For example, a packaged salary of $108,352 in the ACT is below the state average of $119,090, so you are further from the local norm. In Tasmania, the same salary is above the state average. Award classifications can also affect your ordinary-time earnings if your role has a higher minimum rate than the national minimum. The Job medians and Industry medians pages give more granular comparisons.
Summary
Smart salary packaging is a legitimate way to reduce tax, but it does not change the gross salary used in this index. The national full-time average remains $108,352 a year. Your packaged salary is compared with that line, and state or award factors can shift how you sit relative to local benchmarks. For guidance on structuring packaging, see the Guides section. The index itself is based on ABS and Fair Work data, as explained on the About this site page.