What is the average salary in Australia? A guide for comparing job offers

What is the average salary in Australia?

When you ask what is the average salary in Australia, the most widely used benchmark is the full-time adult ordinary-time earnings published by the Australian Bureau of Statistics. As of the latest ABS data (May 2026), that figure is $108,352 per year, or $2,083.70 per week. This is the national line on the Salary Index – set at 100. Every other salary can be compared to this line to see where it sits.

How the Salary Index works

The index is simple: take your yearly gross salary, divide it by $108,352, and multiply by 100. The result is your index number. If your salary is exactly the national average, your index is 100. Above 100 means you earn more than the average full-time adult; below 100 means you earn less. For example, a job offering $90,000 has an index of 83 – about 17% below the national line. A job at $120,000 has an index of 111 – 11% above.

Reading a job ad and comparing offers

When you see a salary in a job ad, the first step is to check whether it’s full-time, part-time, or casual. The index is built around full-time adult ordinary-time earnings, so if the role is part-time or casual, you’ll need to adjust. For casual roles, a loading (often 25%) is typically added to the base rate, but the index still gives you a useful starting point.

Once you have the annual figure, compare it to the national line. But don’t stop there – your location and industry matter a lot. The states page shows that average earnings vary widely: in the ACT the index is 109.9 (annualised $119,090), while in Tasmania it’s 88.6 ($96,008). A $100,000 salary in Tasmania is above the state average (index 104), but in the ACT it’s below (index 84). Similarly, industries like mining have an index of 154.7 (average $167,600), while accommodation and food services sit at 72.5 ($78,555). A $90,000 offer in mining is well below the industry average, but in retail (index 75.9, $82,240) it’s above.

Using the index to negotiate

If you’re comparing two job offers, convert each to its index. Then factor in the state and industry benchmarks. For instance, a job in Western Australia (state index 106.9, $115,825) paying $110,000 has an index of 101.5 – slightly below the state average. A similar role in Victoria (state index 98, $106,137) paying $110,000 has an index of 101.5 as well, but that’s above the Victorian average. The index helps you see the real purchasing power and market position.

Tax and super considerations

Your take-home pay will be less than the gross figure. For the 2026–27 financial year, resident tax rates (excluding Medicare) start at nil up to $18,200, then 15% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above that. Add the 2% Medicare levy. So a $108,352 salary would have an estimated take-home of around $82,000 (rough calculation). Also, the super guarantee is 12% from 1 July 2026, paid on top of your salary – that’s not part of the advertised figure but is an extra benefit.

When the average isn’t the whole story

The national average is a useful yardstick, but it doesn’t reflect every role. Award rates, enterprise agreements, and individual contracts can set different minimums. For example, the national minimum wage from 1 July 2026 is $26.44 per hour, or $52,255 annualised (index 48.2). Many modern awards pay more than that. If you’re looking at a job covered by an award, check the pay guides for the correct minimum rate. The index is a benchmark, not a guarantee.

Putting it all together

Next time you read a job ad, ask what is the average salary in Australia and use that as your anchor. Convert the offer to an index, compare it to your state and industry, and factor in tax and super. The how the index works page has more detail on the calculation. By understanding where a salary sits against the national line, you can make informed decisions and negotiate with confidence.

Remember, the index is based on gross ordinary-time earnings for full-time adults. It’s a tool, not a rule. But it’s one of the best ways to cut through the noise and see how an offer really stacks up.