Your Salary and the National Line: How the Salary Index Works
Learn how the Salary Index compares your gross salary to the national average of $108,352. Understand super, tax, and take-home pay with Australian examples.
The Salary Index compares your yearly gross salary to the national line of $108,352 (index 100). For example, the national minimum wage sits at index 48.2.
Understanding Your Salary in Australia
When you hear the word "salary" in Australia, it usually means your gross annual pay before tax and super. But what does that number really mean? The Salary Index gives you a simple way to compare any salary to the national benchmark. This guide explains how the index works, how super and tax affect your take-home pay, and how your salary stacks up across states and industries.
What Is the Salary Index?
The Salary Index is a number that shows your gross annual salary as a percentage of the national line. The national line is set at index 100, which equals $108,352 per year (based on full-time adult ordinary-time earnings of $2,083.70 per week from the Australian Bureau of Statistics, May 2026). To find your index, divide your yearly gross salary by $108,352 and multiply by 100. For example:
- National minimum wage: $52,255 → index 48.2
- $80,000 salary → index 73.8
- $120,000 salary → index 110.8
You can use this index to see where you sit compared to the average full-time worker. The index is a benchmark, not a quote for a specific job or award classification. For more on how it's calculated, see how the index works.
Gross Salary vs Take-Home Pay
Your gross salary is what you earn before deductions. Two big deductions are tax and the Medicare levy. Superannuation is not deducted from your salary—it's an extra 12% your employer pays on top (from 1 July 2026).
Tax on Your Salary
For the 2026–27 financial year, resident tax rates are:
- $0 – $18,200: nil
- $18,201 – $45,000: 15% on the excess over $18,200
- $45,001 – $135,000: $4,020 plus 30% on the excess over $45,000
- $135,001 – $190,000: $31,020 plus 37% on the excess over $135,000
- $190,001 and over: $51,370 plus 45% on the excess over $190,000
Plus a 2% Medicare levy on all taxable income.
Example: On a $80,000 salary:
- Tax: $4,020 + 30% of ($80,000 – $45,000) = $4,020 + $10,500 = $14,520
- Medicare levy: 2% of $80,000 = $1,600
- Total deductions: $16,120
- Take-home pay: $63,880
This is a simplified estimate. It ignores HELP repayments, salary sacrifice, the Medicare levy reduction, and the Medicare levy surcharge. Your actual take-home may differ.
Super Is Extra
Your employer must pay super at 12% of your ordinary-time earnings (up to a maximum contribution base of $270,830). On an $80,000 salary, that's an extra $9,600 per year paid into your super fund. This does not reduce your take-home pay—it's on top of your gross salary. So your total remuneration (salary plus super) is $89,600.
State and Industry Variations
Your salary index can be compared to state and industry averages to see if you're above or below typical pay in your area or field.
State Indices
- Australian Capital Territory: 109.9 ($119,090 annualised)
- Western Australia: 106.9 ($115,825)
- New South Wales: 101.2 ($109,658)
- Victoria: 98.0 ($106,137)
- Queensland: 97.9 ($106,064)
- Northern Territory: 95.2 ($103,173)
- South Australia: 94.6 ($102,450)
- Tasmania: 88.6 ($96,008)
If you earn $80,000 (index 73.8) and live in Tasmania (state index 88.6), you're below the state average. In the ACT (109.9), you're even further behind. Check the states page for more detail.
Industry Indices
- Mining: 154.7
- Professional, scientific and technical: 114.7
- Education and training: 105.5
- Health care and social assistance: 97.8
- Retail trade: 75.9
- Accommodation and food services: 72.5
A salary of $80,000 (index 73.8) is close to the retail trade average (75.9) but well below mining (154.7). Use the industries page to compare your field.
Awards and Minimum Wages
Many workers are covered by modern awards that set minimum pay rates higher than the national minimum wage. From 1 July 2026, award minima rose by 4.75%. The national minimum wage is $26.44 per hour ($1,004.90 per week, index 48.2). Casual workers get a loading of 25%, making the casual rate $33.05 per hour. Junior workers have lower minimum rates based on age percentages, but awards may set different junior rates.
Your salary index doesn't tell you if you're being paid correctly under an award—you need to check the specific award. For guidance, see pay guides.
Using the Salary Index for Negotiation
The Salary Index is a tool to benchmark your pay. If your index is below the industry average, you might have room to negotiate. If it's above, you're doing well. Remember that the index uses gross ordinary-time earnings—it doesn't include overtime, bonuses, or allowances. Always consider your total package, including super, when comparing.
For more topics related to salary, visit the topics page.
Questions people ask
What does the Salary Index tell me about my salary?
The Salary Index shows where your gross annual salary sits compared to the national line of $108,352 (index 100). For instance, if you earn $80,000, your index is about 73.8, meaning you earn 73.8% of the full-time adult ordinary-time earnings benchmark. You can compare your index to state or industry averages to see how you stack up.
How does superannuation affect my salary?
Superannuation is an additional 12% of your ordinary-time earnings paid by your employer from 1 July 2026. It is not part of your gross salary but is a compulsory contribution to your retirement savings. For example, on a $80,000 salary, your employer pays $9,600 in super, making your total remuneration $89,600. Your salary index is based on gross salary only, not including super.
How is tax calculated on my salary?
For a resident in 2026–27, tax is progressive: no tax on the first $18,200, then 15% up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above that. A 2% Medicare levy applies to all taxable income. For example, on $80,000, tax is about $14,520 plus $1,600 Medicare levy, leaving a take-home of about $63,880. This ignores the tax-free threshold, HELP repayments, and other adjustments.