How to Answer Salary Expectations When Reading a Job Ad
Learn how to answer salary expectations using the Salary Index, award rates, and industry benchmarks. Compare offers with confidence.
The national full-time adult ordinary-time earnings index is 100, equivalent to $108,352 annual gross. Use this to benchmark any salary offer.
What is a salary expectations answer?
A salary expectations answer is what you give when a job ad asks 'What are your salary expectations?' or 'What salary are you looking for?' It's not a guess – it's a researched figure that reflects your worth, the market, and the role. The Salary Index helps you turn that answer into a number you can compare nationally.
Using the Salary Index to compare offers
The Salary Index sets 100 as the national line: full-time adult ordinary-time earnings of $2,083.70 per week, annualised to $108,352. That's from the Australian Bureau of Statistics' Average Weekly Earnings survey for May 2026. If a job offers $90,000, divide by $108,352 and multiply by 100 to get an index of 83.1. That's below the national line. An offer of $120,000 gives an index of 110.8 – above average.
But the national line is just a starting point. Your industry and state matter. For example, retail trade has an index of 75.9, while professional services sits at 114.7. A $90,000 offer in retail is actually above the industry average (index 83.1 vs 75.9). In professional services, $90,000 is below the industry line. Check the industries page for your sector.
Reading a job ad for clues
Job ads often mention an award or classification. If they do, look up the minimum rate on the pay guides from the Fair Work Ombudsman. The national minimum wage from 1 July 2026 is $26.44 per hour, but most awards pay more. For example, the Health Services Award changed from 1 October 2026, and the SCHADS Award will increase by up to 15% from 1 December 2026. The Fair Work Commission's Modern Awards Pay Database has the exact rates.
If the ad doesn't mention an award, ask during the interview. You can also estimate based on the job title and industry. For entry-level roles, the award floor is around $25.74 per hour. For experienced professionals, the index for your industry gives a better guide.
State differences matter
Where you work affects the answer. The Australian Bureau of Statistics data shows state indices: ACT 109.9, WA 106.9, NSW 101.2, VIC 98.0, QLD 97.9, SA 94.6, NT 95.2, TAS 88.6. If you're in Western Australia, the average full-time worker earns $115,825 annualised. In Tasmania, it's $96,008. A salary of $100,000 is below average in WA (index 86.3) but above average in TAS (index 104.2). Use the states page to see your local line.
Example: answering salary expectations in retail
Imagine you're reading a job ad for a retail store manager in Queensland. The ad asks for your salary expectations. You know retail trade has an industry index of 75.9, and Queensland's state index is 97.9. The national line is $108,352. A fair range might be $75,000 to $85,000, which gives an index of 69.2 to 78.4. That's close to the retail average. You could say 'I'm looking for a base salary between $75,000 and $85,000, plus super.' If the ad mentions an award, check the classification rate. The General Retail Industry Award might set a higher minimum for a manager.
Tax and super in your answer
Your salary expectations answer should be gross base salary, not including super. The super guarantee is 12% from 1 July 2026, paid on top. For the 2026–27 tax year, resident tax rates (excluding Medicare) are: nil up to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000, 45% above. Add 2% Medicare levy. So a $80,000 salary after tax and Medicare is roughly $63,000. Keep that in mind when negotiating, but quote the gross figure.
Putting it all together
Your salary expectations answer should be a range based on data, not a single number. Use the how the index works page to calculate your own benchmark. Combine industry, state, and award information. If you're unsure, say 'I'm flexible based on the total package, but I'm looking for something in the range of $X to $Y.' The more you know, the better your answer.
For more topics, see the topics page.
Questions people ask
What is the Salary Index and how do I use it to answer salary expectations?
The Salary Index sets the national line at 100, based on full-time adult ordinary-time earnings of $108,352 per year (from ABS Average Weekly Earnings, May 2026). To compare a salary offer, divide the annual gross salary by $108,352 and multiply by 100. For example, an $80,000 offer gives an index of 73.8. You can then compare that index to industry or state averages to see if the offer is above or below the line.
How do I find the correct award rate for my job?
Use the Fair Work Ombudsman's pay guides, which list minimum pay rates for full-time, part-time, and casual employees under each modern award. The Fair Work Commission's Modern Awards Pay Database also provides detailed classification rates, allowances, and penalty rates. Check the award that covers your industry and occupation, then find your classification level. Remember, award rates are minimums; many employers pay above them.
Should I include superannuation in my salary expectation?
Salary expectations are usually quoted as gross base salary excluding super. The super guarantee is 12% from 1 July 2026, paid on top of your salary. When comparing offers, note whether the advertised figure includes super or not. If a job ad says '$80,000 + super', your total package is $89,600 including super. Use the base salary for index comparisons.