Southgate Salary Packaging and the National Full-Time Average
Salary packaging is a common way to structure remuneration, especially in the not-for-profit, health, and public sectors. Providers like Southgate help employees arrange pre-tax deductions for items such as cars, superannuation, or work-related expenses. This article explains how salary packaging interacts with the national full-time average earnings figure used on this site, and how you can use the Average line to see where your gross salary stands.
What the National Full-Time Average Represents
The site's line is set at the national full-time adult ordinary-time average: $2,083.70 per week, or about $108,352 per year (ABS Average Weekly Earnings, May 2026, multiplied by 52). This is a gross figure—it includes ordinary-time earnings before tax and before any salary packaging deductions. The ABS collects this data from employers and reports it twice a year (May and November). It does not reflect the effect of salary packaging on take-home pay.
For context, the full-time median (ABS Employee Earnings, August 2025) is about $90,532, and the all-employees median is about $74,100. The national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, or $52,255 per year on a 38-hour week. These are all gross figures. State full-time averages also vary, from Tasmania's $96,008 to the ACT's $119,090.
How Salary Packaging Changes the Picture
When you salary package, you reduce your taxable income. For example, if your gross salary is $108,352 and you package $15,000 for a car and super, your taxable income becomes $93,352. You then pay tax on that lower amount, so your take-home pay is higher than someone earning $93,352 without packaging. However, the Average line tool compares gross salaries only. So if you enter your gross salary of $108,352, the tool will show it as exactly on the line. But your effective net income may be above average because of the tax savings.
It is important to note that salary packaging does not change your gross salary for the purposes of the ABS average. The average is based on what employers pay before any packaging deductions. Therefore, if you are on a packaged salary, your gross figure is still the relevant number for comparison with the national average.
Using the Average Line Tool with a Packaged Salary
To see where your pay sits, enter your gross annual salary (the amount before packaging) into the tool on the Place a salary on the line page. The tool will calculate the weekly and hourly equivalent based on a 38-hour week, and show the distance from the national full-time average. For instance, a gross salary of $100,000 is about $1,923 per week and $50.63 per hour, which is below the $2,083.70 line. If you package part of that salary, your take-home pay may be higher than the line suggests, but the tool's comparison is always on gross.
You can also explore how your salary compares to state averages or industry medians using the States and territories and Industry medians pages. These use the same ABS and Fair Work sources.
Tax Implications of Salary Packaging
The Australian tax system for 2026–27 has these resident tax rates: nil on the first $18,200; 15% on the next $26,800 (to $45,000); 30% on the next $90,000 (to $135,000); 37% on the next $55,000 (to $190,000); and 45% above $190,000. Plus a 2% Medicare levy (with possible reductions for low-income earners). Salary packaging reduces your taxable income, so you may fall into a lower bracket. For example, packaging $15,000 from a $108,352 salary moves you from the 30% bracket (on income between $45,000 and $135,000) to still within that bracket, but the tax saved is 30% of $15,000 = $4,500, plus 2% Medicare levy saved = $300, total $4,800 extra in your pocket. However, some benefits are subject to fringe benefits tax (FBT), which the employer may pass on. Southgate typically advises on FBT-exempt items for certain employers.
Minimum Wage and Award Increases
Fair Work sets the national minimum wage and award rates. From 1 July 2026, the minimum wage is $26.44 per hour, and award minimums rose by 4.75%. Salary packaging cannot reduce your pay below the minimum wage for the hours you work. If you package a car or other benefit, your gross salary must still cover the minimum wage after the packaging deduction. Southgate and similar providers ensure compliance with the Fair Work Act.
Conclusion
Southgate salary packaging is a legitimate way to increase your take-home pay by reducing taxable income. However, the national full-time average line on this site is based on gross ordinary-time earnings. To see where your pay sits, use the gross figure. For more detailed guidance on how salary packaging affects your net income, refer to the Guides section or consult a tax professional. The Average line remains a useful benchmark for comparing gross salaries across Australia.
Remember: the figures on this site come from the ABS, Fair Work, and the ATO. They are updated when new releases occur, but the national average is published twice a year. Always check the How the figures are set page for the latest sources.