What is salary sacrifice super?
Salary sacrifice super is a voluntary arrangement where you ask your employer to redirect part of your before-tax salary into your superannuation fund. The sacrificed amount is treated as an employer super contribution and is taxed at 15% inside the fund, rather than at your marginal income tax rate. This can reduce the tax you pay on that portion of your income, especially if your marginal rate is higher than 15%.
Because the money goes into super before you receive it, your take-home cash pay is lower. But your super balance grows faster. The Australian Tax Office (ATO) caps how much you can sacrifice each year under the concessional contributions cap (currently $30,000 per year, including your employer's mandatory 11.5% super guarantee).
How salary sacrifice interacts with the national average
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). This figure is calculated from gross earnings before any salary sacrifice arrangements. So if you earn exactly the average and sacrifice $10,000 into super, your taxable income drops to $98,352, but the average line still shows $108,352 as the benchmark.
Your employer reports your gross salary (before sacrifice) to the ABS, so salary sacrifice does not change the earnings figure used in the index. However, it does affect your personal comparison: your after-tax income is lower than someone who does not sacrifice, but your super balance is higher.
Where does your pay sit on the line?
If you are considering salary sacrifice, you can place your salary on the line to see how your gross pay compares to the national average. The tool uses your before-tax salary (before any sacrifice) and shows the distance from the average line. For example, a salary of $120,000 is above the average, while $90,000 is below.
Tax considerations for 2026–27
For the 2026–27 financial year, the ATO's 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 reductions for low incomes).
Salary sacrifice super is most beneficial if your marginal rate is 30% or higher, because the 15% tax in super is lower. If you earn below $45,000, the benefit is smaller or nil because your marginal rate is already 15% or less.
State averages for context
If you live in a state with a higher average, salary sacrifice might still make sense. For instance, the Australian Capital Territory full-time average is about $119,090, and Western Australia is about $115,825. In these states, more workers are in higher tax brackets, so salary sacrifice can yield greater tax savings. Conversely, in Tasmania (average $96,008), fewer workers may benefit from sacrificing.
Other ways to compare your pay
You can also explore job medians and industry medians to see how your occupation or sector compares. The full-time median is about $90,532, and the all-employees median is about $74,100 (ABS Employee earnings, August 2025). 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 (Fair Work).
What would move your pay above or below the average?
Salary sacrifice itself does not move your gross pay relative to the average, because the average is based on gross earnings. However, if you reduce your gross salary by sacrificing a large amount, your taxable income falls, which could affect your eligibility for certain government benefits or the Medicare levy surcharge. But the line on this site always compares your gross salary before sacrifice.
To move your pay above the average, you would need a higher gross salary—either through a pay rise, promotion, or moving to a higher-paying state or industry. To move below, you might reduce hours or switch to a lower-paid role. Salary sacrifice is a separate decision about how you allocate your existing gross pay.
Guides and further reading
For more detail on how salary sacrifice works with the tax system, see our Guides section. You can also read How the figures are set to understand the methodology behind the average line.
Summary
Salary sacrifice super is a tax-effective way to boost your retirement savings, but it does not change the gross salary figure used to compare against the national average. The average line remains $108,352 per year. Your personal comparison depends on your gross salary before any sacrifice. Use the tools on this site to see where you stand.