What Does Salary Package Super Mean on the Australian Salary Index?

What does 'salary package super' mean?

In Australian employment, a salary package super (or total remuneration package) is the full cost to an employer of having you on staff. It includes your gross base salary plus the mandatory super guarantee contribution, and sometimes other benefits like a car, phone, or housing. The phrase is common in job advertisements and contract negotiations, especially for professional and managerial roles.

When you see a figure quoted as a salary package super, you need to know what it actually represents for your take-home pay and how it compares to national benchmarks. The Salary Index uses gross ordinary-time earnings – that is, your cash salary before tax and before any super. So the super component must be stripped out to find where your pay sits on the index.

How to compare a salary package super to the national index

The national line is set at index 100, which equals $108,352 per year (full-time adult ordinary-time earnings, May 2026 ABS data). To compare your package, follow these steps:

1. Identify the super guarantee rate. From 1 July 2026, the super guarantee is 12% of your ordinary-time earnings, up to a maximum contribution base of $270,830.
2. Calculate your base salary. If your package is quoted as total cost including super, divide by 1.12. For example, a package of $130,000 including super gives a base of $130,000 ÷ 1.12 ≈ $116,071.
3. Annualise if needed. The index uses annual figures, so if you are paid weekly or fortnightly, multiply to get a yearly base.
4. Compute your index. Divide your annual base salary by $108,352 and multiply by 100. For the $116,071 example: (116,071 ÷ 108,352) × 100 ≈ 107.1. That is above the national line.

Remember that the index is a benchmark for ordinary-time earnings, not a guarantee of your personal circumstances. Awards, enterprise agreements, and individual contracts can set different base rates. For more detail, see how the index works.

Examples across industries and states

Because the index varies by industry and state, a salary package super that looks generous in one context may be average in another. For instance:

• Mining has an industry index of 154.7, meaning the typical ordinary-time earnings are about 55% above the national line. A package of $150,000 including super (base ~$133,929) gives an index of 123.6 – well above the national line but below the mining industry average.
• Retail trade has an index of 75.9, well below the national line. A package of $80,000 including super (base ~$71,429) gives an index of 65.9, which is below the retail average.
• Professional, scientific and technical services index is 114.7. A package of $120,000 including super (base ~$107,143) gives an index of 98.9, slightly below that industry average.

State indices also matter. For example, Western Australia has an index of 106.9 ($115,825 annualised), while Tasmania is 88.6 ($96,008). A salary package super of $110,000 including super (base ~$98,214) would be above the Tasmanian average but below the WA average. Check the states page for more details.

Tax and super considerations

Your base salary is what attracts income tax and the Medicare levy. For the 2026–27 financial year, 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
• 45% above $190,000

Plus a flat 2% Medicare levy (ignoring surcharges and reductions). So a base salary of $107,143 would have a tax estimate of about $24,000 plus Medicare, leaving a take-home of roughly $80,000. The super contribution of $12,857 goes into your super fund, not your pocket, but it is part of your total remuneration.

When comparing job offers, always clarify whether the figure is a salary package super or a base salary. Some employers quote the package to make the offer look larger, but your day-to-day cash flow depends on the base. For more on award rates and minimums, see the pay guides.

Why the index matters for salary package super

Using the salary index helps you see where your total remuneration sits relative to the broader workforce. Because the index is based on cash earnings, you need to convert any package that includes super. Once you have your base, you can compare across industries and states to see if your pay is competitive.

Remember that the index is a benchmark, not a target. Many factors – experience, location, award coverage, and negotiation – affect what you can earn. The key is to understand the difference between the headline package and the cash you actually receive.