What an Annual Salary Really Means Across Australian States and Industries
Understand how annual salary compares across Australian states and industries using the Salary Index. See national benchmarks, state variations, and industry differences.
The national full-time adult ordinary-time annual salary is $108,352 (index 100), but ranges from $96,008 in Tasmania (index 88.6) to $119,090 in the ACT (index 109.9), and from $78,500 in accommodation (index 72.5) to $167,500 in mining (index 154.7).
What Does 'Annual Salary' Mean in Australia?
When Australians talk about an annual salary, they usually mean the gross ordinary-time earnings a full-time employee receives in a year, before tax and superannuation. It’s the number you see on an employment contract or a pay slip, but it doesn’t include overtime, bonuses, or allowances. Understanding where your annual salary sits against the national line helps you see if you’re above or below average for your state or industry.
The Australian Bureau of Statistics (ABS) measures average weekly ordinary time earnings for full-time adults. As of May 2026, that figure is $2,083.70 per week, which annualises to $108,352. That’s the benchmark we call index 100 on the Salary Index – the point of comparison for every other salary.
State Differences in Annual Salary
Where you work in Australia makes a big difference to the typical annual salary. The ABS publishes state-by-state averages for full-time adult ordinary-time earnings. Here’s how they compare, annualised and indexed against the national line:
- Australian Capital Territory: $2,290.20 per week, annualised $119,090, index 109.9
- Western Australia: $2,227.40 per week, annualised $115,825, index 106.9
- New South Wales: $2,108.80 per week, annualised $109,658, index 101.2
- Victoria: $2,041.10 per week, annualised $106,137, index 98.0
- Queensland: $2,039.70 per week, annualised $106,064, index 97.9
- Northern Territory: $1,984.10 per week, annualised $103,173, index 95.2
- South Australia: $1,970.20 per week, annualised $102,450, index 94.6
- Tasmania: $1,846.30 per week, annualised $96,008, index 88.6
These figures are averages, not guarantees. A job in the ACT or WA tends to pay more because of industry mix and cost of living, while Tasmania and South Australia sit below the national line. If you’re considering a move, check the states page for more detail.
Industry Differences in Annual Salary
Your industry matters even more than your state. The ABS breaks down average weekly ordinary time earnings by industry, and the gaps are huge. Here are some key examples, annualised and indexed:
- Mining: $3,224.20 per week, annualised $167,658, index 154.7
- Information media & telecommunications: $2,714.10 per week, annualised $141,133, index 130.2
- Electricity, gas, water & waste services: $2,546.00 per week, annualised $132,392, index 122.2
- Professional, scientific & technical services: $2,389.60 per week, annualised $124,259, index 114.7
- Financial & insurance services: $2,341.30 per week, annualised $121,748, index 112.3
- Education & training: $2,197.90 per week, annualised $114,291, index 105.5
- Public administration & safety: $2,179.80 per week, annualised $113,350, index 104.6
- Health care & social assistance: $2,037.20 per week, annualised $105,934, index 97.8
- Construction: $1,985.30 per week, annualised $103,236, index 95.3
- Retail trade: $1,581.60 per week, annualised $82,243, index 75.9
- Accommodation & food services: $1,509.90 per week, annualised $78,515, index 72.5
These are broad industry averages. Within each industry, specific roles and award classifications can pay more or less. For example, a retail manager might earn well above the retail average, while a junior hospitality worker might earn the national minimum wage. The industries page has more breakdowns.
How the Salary Index Works
The Salary Index is a simple tool: take your gross annual salary, divide it by the national benchmark of $108,352, and multiply by 100. That gives you a number that tells you where you sit relative to the average full-time adult. For instance, the national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, annualised $52,255 – that’s an index of 48.2. A salary of $130,000 gives an index of 120.0, meaning 20% above the national line.
You can also compare to state or industry benchmarks. If you work in mining in Western Australia, your salary might be well above the national line, but that’s expected given the industry and location. The index helps you see the gap in a standardised way. For more on the calculation, see how the index works.
What About Awards and Minimum Wages?
Many Australian employees are covered by modern awards, which set minimum pay rates for specific industries and occupations. The Fair Work Commission updates these each year. From 1 July 2026, award minimum rates rose by 4.75%. The national minimum wage itself is $26.44 per hour, but most award classifications pay more than that. For example, the entry-level award floor is $25.74 per hour. Casual employees get a loading (typically 25%), so a casual minimum wage worker might earn $33.05 per hour.
Your annual salary under an award depends on your classification level, experience, and any allowances. The Fair Work Commission’s Modern Awards Pay Database provides detailed rates. Always check your specific award or enterprise agreement rather than relying on averages.
Tax and Superannuation
When you see an annual salary figure, remember that superannuation is paid on top – 12% from 1 July 2026, up to a maximum contribution base of $270,830. Tax is deducted from your salary. For 2026–27, resident tax rates (excluding Medicare) are: nil up to $18,200, 15% from $18,201 to $45,000, 30% from $45,001 to $135,000, 37% from $135,001 to $190,000, and 45% above $190,000. Plus a 2% Medicare levy. So a $108,352 salary would have a tax bill of roughly $25,000 plus Medicare, leaving about $80,000 take-home – but that’s a rough estimate ignoring HELP, salary sacrifice, and other adjustments.
Putting It All Together
Your annual salary is more than a number – it’s a reflection of where you work, what you do, and how your pay compares to others. The Salary Index gives you a consistent way to see that. Whether you’re negotiating a raise, considering a move to another state, or switching industries, the index helps you understand the landscape. Start with the Salary Index to find your number, then explore states and industries for deeper context.
Remember, averages are just that – they don’t capture every job or every person. But they give you a solid starting point to ask the right questions about your annual salary.
Questions people ask
How is annual salary calculated in Australia?
Annual salary is usually the gross ordinary-time earnings a full-time employee receives in a year, before tax and superannuation. It is typically based on a weekly or hourly rate multiplied by 52 weeks. For part-time or casual workers, annual salary may be pro-rated. The Australian Bureau of Statistics publishes average weekly ordinary time earnings for full-time adults, which annualises to the national benchmark of $108,352 as of May 2026.
Does annual salary include superannuation and bonuses?
No, annual salary generally refers to base gross earnings. Superannuation guarantee contributions (12% from 1 July 2026) are paid on top of salary. Bonuses, commissions, overtime, and allowances are usually separate. The Salary Index uses ordinary-time earnings only, excluding overtime and bonuses, to provide a consistent comparison across roles and industries.
How can I compare my annual salary to the national average?
Use the Salary Index: divide your gross annual salary by the national benchmark of $108,352 and multiply by 100. For example, a salary of $80,000 gives an index of 73.8, meaning it is about 74% of the national full-time adult ordinary-time average. You can also compare to state or industry benchmarks using the same method. See [how the index works](/method) for more details.