What Is a League Average Salary? How to Compare Job Offers Using the Salary Index

What Is a League Average Salary?

When you see a job ad quoting a salary, you might wonder how it stacks up against the typical pay in that field. In Australia, the phrase a league average salary often refers to the average earnings within a specific industry or sector – your "league" of work. The Salary Index gives you a clear way to measure that.

How the Index Works

The national line is set at index 100, which equals $108,352 per year (based on full-time adult ordinary-time earnings from the Australian Bureau of Statistics). Every salary can be turned into an index number: divide the yearly gross by $108,352 and multiply by 100. That number tells you where the pay sits relative to the national average.

For example, if a job offers $120,000, the index is about 110.8 – above the national line. If it offers $80,000, the index is 73.8 – below the line. But to know if that's a good offer for your industry, you need the league average.

Industry League Averages

The industries page shows index figures for major sectors. Here are a few:

• Mining: index 154.7 (annualised $167,600)
• Professional, scientific and technical services: index 114.7 ($124,300)
• Education and training: index 105.5 ($114,300)
• Health care and social assistance: index 97.8 ($106,000)
• Retail trade: index 75.9 ($82,200)
• Accommodation and food services: index 72.5 ($78,600)

So if you're looking at a retail job paying $85,000, that's above the league average of $82,200 (index 75.9). But if you're in mining, $85,000 is well below the league average of $167,600.

Reading Job Ads with the Index

When you compare offers, start by finding the industry for each role. If the ad doesn't state an industry, look at the employer's main activity. Then convert the offered salary to an index number and compare it to the industry index from our site.

For instance, a graduate role in professional services offering $70,000 gives an index of 64.6 – well below the industry average of 114.7. That might be typical for entry-level, but it's still worth knowing where you stand.

State Differences Matter Too

Your location also affects the league average. The states page shows indices like:

• ACT: 109.9 ($119,090)
• WA: 106.9 ($115,825)
• NSW: 101.2 ($109,658)
• VIC: 98.0 ($106,137)
• QLD: 97.9 ($106,064)
• SA: 94.6 ($102,450)
• NT: 95.2 ($103,173)
• TAS: 88.6 ($96,008)

A salary that looks low nationally might be competitive in Tasmania, while the same figure in the ACT would be below the state average.

Awards, Super, and Tax

Remember that modern awards set minimum pay rates for many roles. The national minimum wage from 1 July 2026 is $26.44 per hour (index 48.2), but award rates can be higher. For example, entry-level award floor is $25.74/hr. Always check if the job is award-covered.

Super guarantee is 12% from 1 July 2026, so add that to your total compensation. For a $100,000 salary, that's an extra $12,000 into your super fund.

Tax is progressive: 2026–27 rates (excluding Medicare) are nil up to $18,200, then 15% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above. Add 2% Medicare levy. Take-home estimates on our site assume the tax-free threshold and flat Medicare, but ignore HELP repayments and other adjustments.

Putting It All Together

To decide if a job offer is fair, calculate its index and compare it to the league average for that industry and state. Use the how the index works page for the formula. If the offer is below the league average, ask the employer if there's room to negotiate or if other benefits (like bonuses or flexible hours) make up the difference.

If you're unsure about the industry or role, check the pay guides for award classifications. And remember, the index is a benchmark, not a promise – your skills, experience, and location all affect what you can earn.

FAQs

How do I calculate a league average salary using the Salary Index?

Take the yearly gross salary from a job ad and divide it by the national line of $108,352, then multiply by 100. For example, a $90,000 salary gives an index of about 83.1. Compare that to the industry index (e.g., retail trade 75.9) to see if it's above or below the league average.

What does it mean if a job offer is below the league average salary?

It may indicate the role is in a lower-paying industry or that the employer is offering less than typical. Check if the role is covered by a modern award, which sets minimum pay. Also consider state differences: for example, Tasmania's index is 88.6, so a below-average offer might still be competitive locally.

Can I use the league average salary to compare offers across different industries?

Yes, by converting each offer to an index number. An offer in mining at index 150 is relatively higher than one in accommodation and food services at index 72.5, even if the dollar amounts differ. This helps you see the real purchasing power relative to the national line.