What Is the Average Salary in Australia? A Guide to the Salary Index

What Does 'Average Salary' Mean in Australia?

When people ask about the average salary in Australia, they usually want a single number that sums up what a typical full-time worker earns. The most reliable benchmark comes from the Australian Bureau of Statistics (ABS) Average Weekly Earnings survey. As of May 2026, full-time adult ordinary-time earnings are $2,083.70 per week, which annualises to $108,352. On the Salary Index, that figure sits at exactly 100 – the national line against which all other pay is measured.

But the average salary is not the same for everyone. It is a mean, pulled up by high earners in industries like mining and professional services. More than half of full-time workers earn less than the average. That is why the Salary Index is useful: it lets you see where any pay figure – whether from an award, an enterprise agreement, or a job advertisement – falls relative to the national line.

How the Average Salary Breaks Down by State

Where you live makes a big difference. The ACT has the highest average salary at $119,090 (index 109.9), driven by public-sector and professional roles. Western Australia follows at $115,825 (index 106.9), thanks to the mining and resources sector. At the other end, Tasmania’s average is $96,008 (index 88.6), reflecting a different industry mix. You can explore more on the states page.

Victoria and Queensland are close to the national line, while South Australia and the Northern Territory sit below. These state indices are benchmarks – they show the average for all full-time workers in that state, not a specific job or employer.

Industry Averages: Where the Money Is

Industry is the strongest predictor of salary. The industries page shows that mining workers earn an average index of 154.7 – more than 50% above the national line. Professional, scientific and technical services sit at 114.7, and education and training at 105.5. On the lower end, retail trade is at 75.9, and accommodation and food services at 72.5. These figures are gross ordinary-time earnings, so they do not include tips, commissions, or penalty rates.

If you are comparing a job offer, it helps to know the industry index. A retail role paying $70,000 might be close to the industry average, while the same salary in mining would be well below average.

The National Minimum Wage vs the Average

The national minimum wage from 1 July 2026 is $26.44 per hour, or $1,004.90 per week. Annualised, that is $52,255 – an index of just 48.2. That means the minimum wage is less than half the average salary. Most modern awards pay more than the minimum, but the gap shows how far the average is from the legal floor. For junior workers, the minimum is even lower: a 16-year-old gets $12.51 per hour under the national minimum wage order.

Gender and the Average Salary

The ABS data shows a persistent gap. Men’s full-time average is $2,181 per week, women’s $1,934.50. That difference is partly due to industry and occupation segregation, as well as hours and seniority. The overall average salary masks these disparities. When you use the how the index works page, you can see that the index is a tool for comparing any pay figure, but it does not adjust for gender or part-time status.

What the Average Salary Does Not Include

The average salary figure is gross ordinary-time earnings. It does not include:

• Superannuation (now 12% from 1 July 2026)
• Casual loading (typically 25%, so $33.05/hr on the minimum wage)
• Overtime, bonuses, or commissions
• Salary sacrifice arrangements

Take-home pay is further reduced by tax and the Medicare levy (2%). For a resident earning the average $108,352 in 2026–27, tax would be roughly $24,667 plus $2,167 Medicare levy, leaving about $81,518. But that ignores HELP repayments, the Medicare levy surcharge, and other deductions. Always check your own situation.

Using the Salary Index to Understand Your Pay

The Salary Index is simple: divide your yearly gross pay by the national line ($108,352) and multiply by 100. If you earn $80,000, your index is about 74. That tells you immediately that you are below the average. If you earn $130,000, your index is 120 – above average. You can compare your index to industry and state benchmarks to see if your pay is typical.

For more context, see the [pay guides](/blog] and topics sections. They explain how awards, enterprise agreements, and market rates relate to the index.

Common Misconceptions About the Average Salary

• The average is not the median. The median salary is lower because high earners pull the mean up. The ABS does not publish a national median for full-time workers, but it is likely around $80,000–$85,000.
• The average is not a living wage. It is a statistical measure. Many households get by on less, especially in lower-cost regions.
• The average changes each year. The ABS updates the figure twice a year. The May 2026 figure is the latest reference.

Final Thoughts

The average salary in Australia is a useful starting point, but it is only one number. To understand where your pay sits, use the Salary Index. It turns any salary into a simple score relative to the national line. Whether you are negotiating a raise, choosing a career, or just curious, the index gives you a clear, fair comparison.

Remember: the index is a benchmark, not a target. A low index does not mean you are underpaid – it depends on your industry, location, and role. Use the states and industries pages to find the right comparison for your situation.