Smart salary NSW Health: where your pay sits on the salary index

Smart salary NSW Health: what it means for your pay

Smart salary NSW Health refers to the salary packaging program available to employees of NSW Health, managed by Smartsalary. Salary packaging (also called salary sacrifice) is an ATO-approved arrangement that lets you pay for certain items with pre-tax salary, reducing your income tax and increasing your take-home pay. This guide explains how the program works, what typical pay rates are for NSW Health roles, and where those gross salaries sit on the Australian salary index.

How salary packaging works

Under smart salary NSW Health, you can package benefits such as rent or mortgage payments, car leases, or other everyday expenses. Because these are paid from your pre-tax salary, your taxable income decreases, meaning you pay less tax. The Smartsalary website [nswhealth..au] provides a calculator to estimate your savings. Fees may apply, and your employer decides which benefits are available. Importantly, salary packaging does not change your gross salary – only the amount of tax you pay. Therefore, your salary index (gross ordinary-time earnings divided by the national line, times 100) remains the same.

Where NSW Health pay sits on the index

The salary index uses a baseline of 100, which equals full-time adult ordinary-time earnings of $108,352 per year (from ABS Average Weekly Earnings, May 2026). The national minimum wage from July 2026 is $26.44 per hour, annualised $52,255, giving an index of 48.2. The health care and social assistance industry index is 97.8, and the NSW state index is 101.2.

For NSW Health employees covered by the Health Professionals and Support Services Award (MA000027), the Fair Work Ombudsman publishes minimum rates effective from October 2026. For example:

• Support services Level 1: $26.97 per hour, $1,024.70 per week, annualised $53,284, index 49.2.
• Support services Level 4: $29.45 per hour, $1,119.10 per week, annualised $58,193, index 53.7.
• Support services Level 8 pay point 3: $37.10 per hour, $1,409.70 per week, annualised $73,304, index 67.6.
• Health professional employees have higher rates; for instance, Level 9 pay point 3: $39.42 per hour, $1,497.80 per week, annualised $77,886, index 71.9.

These are minimum award rates. Many NSW Health employees are covered by enterprise agreements that pay above award. The NSW Health rates page lists classifications for nurses, ambulance officers, and skilled trades with interim increases.

Salary packaging and the index

Because salary packaging reduces taxable income but not gross salary, your salary index is unaffected. For example, a nurse earning $80,000 gross (index 73.8) who packages $10,000 of expenses still has a gross salary of $80,000 for index purposes. Their take-home pay increases because they pay tax on only $70,000, but the index remains 73.8. This is important when comparing roles across industries or states – the index reflects the gross earnings before any packaging.

Practical example

Consider a support services employee at Level 3 ($29.11 per hour, annualised $60,522, index 55.6). If they salary package a car lease worth $8,000 per year, their taxable income drops to $52,522, saving about $1,560 in tax (assuming 30% marginal rate plus Medicare). Their gross salary index stays at 55.6. The same employee on the national minimum wage ($52,255, index 48.2) could package similar benefits, but the gross index remains 48.2.

Where to find more information

For award rates, use the pay guides on the Fair Work Ombudsman website. For state comparisons, see states. For industry benchmarks, see industries. To understand how the index is calculated, read how the index works.

Caveats

• The rates above are minimums; actual pay may be higher under enterprise agreements or for experienced staff.
• Salary packaging fees and eligibility vary. Consult the Smartsalary website for your employer’s specific benefits.
• The salary index is a gross earnings benchmark, not a measure of take-home pay or financial wellbeing.
• Award rates change annually; always check the latest Fair Work Ombudsman pay guide.

Summary

Smart salary NSW Health is a valuable benefit that increases take-home pay without changing your gross salary index. Typical award rates for support services roles sit around index 49–72, while health professionals may reach higher. The industry average for health care is 97.8, reflecting many above-award salaries. Use the salary packaging calculator to see your potential savings, and remember that your salary index remains based on gross earnings.