What Is a Salary?
In Australia, a salary is a fixed annual amount of pay before tax, typically paid fortnightly or monthly. It is the most common form of compensation for full-time employees, though part-time and casual workers may also receive a salary. Unlike an hourly wage, a salary does not vary with hours worked, but it must still meet minimum legal standards.
How Salary Is Measured
The Australian Bureau of Statistics (ABS) publishes two key measures: average weekly earnings and median weekly earnings. The average is the mean of all full-time adult ordinary-time earnings, while the median is the middle point. For May 2026, the ABS reported that full-time adult average weekly ordinary time earnings were $2,083.70, or about $108,352 per year (multiply by 52). This is the figure used by Average line as the national benchmark.
Where Your Salary Sits on the Line
If you have a specific salary in mind, you can place it on the line to see how it compares to the national full-time average. The site also shows the equivalent weekly and hourly amounts based on a 38-hour week. For example, a salary of $90,000 per year is below the average but above the full-time median of $90,532. A salary of $120,000 is above average, while $60,000 is below both the average and median.
Average vs Median vs Minimum
It is important to distinguish between three key figures:
- National full-time average: $108,352 per year (ABS Average Weekly Earnings, May 2026). This is the mean of all full-time adult ordinary-time earnings.
- Full-time median: $90,532 per year (ABS Employee earnings, August 2025). Half of full-time employees earn less, half earn more.
- All-employees median: $74,100 per year (ABS Employee earnings, August 2025). This includes part-time and casual workers.
- National minimum wage: $52,255 per year (Fair Work, from 1 July 2026). This is the legal floor for most employees.
The average is higher than the median because high salaries pull the average up. The minimum wage is about half the average.
State and Territory Averages
Full-time average salaries vary by state and territory. The highest is the Australian Capital Territory at $119,090 per year, followed by Western Australia at $115,825. The lowest is Tasmania at $96,008. You can explore all states on the states and territories page.
How Salary Is Taxed
Salary is subject to income tax and the Medicare levy. For 2026–27, the tax-free threshold is $18,200. Above that, rates are:
- 15% on income between $18,201 and $45,000
- 30% on income between $45,001 and $135,000
- 37% on income between $135,001 and $190,000
- 45% on income above $190,000
Plus a 2% Medicare levy (with possible reductions for low-income earners). The Australian Taxation Office (ATO) administers these rates.
Salary vs Wage
A salary is usually quoted annually, while a wage is quoted hourly. Many awards set minimum hourly rates, which are then annualised for salaried employees. The Fair Work Commission’s Modern Awards Pay Database contains the minimum rates for each award. From 1 July 2026, award minimums rose by 4.75% following the Annual Wage Review.
Why the Average Matters
The national full-time average is a useful benchmark for understanding where your pay stands in the broader economy. It is updated twice a year by the ABS (May and November). Average line uses the most recent release to keep the line accurate. For more detail on how the figures are set, see How the figures are set.
Common Questions
Is a salary the same as total remuneration? No. Salary is the base pay before tax. Total remuneration may include superannuation, bonuses, and other benefits. The ABS average refers to ordinary-time earnings, which exclude overtime and bonuses.
What if I work part-time? The full-time average applies only to full-time adult employees. Part-time workers have lower median earnings. The all-employees median of $74,100 gives a better comparison for part-time roles.
Does the average include public sector? Yes. The ABS average includes both private and public sectors. In May 2026, the public sector average was higher ($117,648 per year) than the private sector ($105,773).
Conclusion
A salary in Australia is a fixed annual pay that must meet minimum standards. The national full-time average of $108,352 provides a reference point. Whether your salary is above, below, or right on the line, understanding these figures helps you assess your position in the labour market.