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Car allowance salary package: How state and award rates shift your pay from the national average

A car allowance salary package can lift total remuneration, but its impact varies by state and award; the national full-time average is $108,352 per year.

This sits on the Australian full-time average.

Week, hour, and a tax sketch

$2,084 a week · $54.83 an hour if spread over 38 hours

About $83,159 after resident income tax and a 2% Medicare levy.

2026–27 resident rates and a 2% Medicare levy. Not a tax assessment.Open the full line

Why a car allowance salary package can sit above or below the national line

When you receive a car allowance as part of your salary package, your total pay can look quite different from the national full-time average. The ABS Average Weekly Earnings for May 2026 puts the national full-time adult ordinary-time average at $2,083.70 a week, or about $108,352 a year. But your own package – including a car allowance – may be higher or lower depending on the state you work in and the award or agreement that sets your pay.

The national average as a baseline

The ABS figure is a useful benchmark. It covers all full-time adults across Australia, in both the public and private sectors. For May 2026, the seasonally adjusted average weekly ordinary time earnings for full-time adults was $2,083.70. That works out to $108,352 a year if you multiply by 52 weeks. This is the line that the Average line site uses to show where your salary sits.

But this average hides a lot of variation. Men’s full-time ordinary-time average is about $113,412 a year, while women’s is about $100,594. The full-time median – the middle point where half earn more and half earn less – is lower, at about $90,532 a year. The all-employees median, which includes part-time and casual workers, is about $74,100. So a car allowance salary package can easily push you above or below these figures.

How your state moves the figure

Where you work matters a lot. The ABS publishes state-by-state averages for full-time adults. The on-site notes give these annual figures:

  • Australian Capital Territory: about $119,090
  • Western Australia: about $115,825
  • New South Wales: about $109,658
  • Victoria: about $106,137
  • Queensland: about $106,064
  • Northern Territory: about $103,173
  • South Australia: about $102,450
  • Tasmania: about $96,008

If you work in the ACT or WA, your total package – including a car allowance – is more likely to be above the national line. In Tasmania, it is more likely to be below. A car allowance of, say, $10,000 a year could lift a Tasmanian worker closer to the national average, while the same allowance in the ACT might push a package well above it.

The role of awards and the Fair Work database

Many car allowances are set by modern awards or enterprise agreements. The Fair Work Commission’s Modern Awards Pay Database includes expense-related allowances, such as vehicle allowances, that apply to specific awards. For example, the Aged Care Award 2010 and the Social, Community, Home Care and Disability Services Industry Award 2010 have temporary changes to vehicle allowances from September 2026, as noted in the Fair Work database.

These allowances are part of your salary package, but they may not always be counted as ordinary time earnings for the purpose of the ABS average. The ABS measures “cash earnings” including salary sacrifice, but expense-related allowances that are reimbursements for actual costs may be treated differently. That means your car allowance could lift your take-home pay without necessarily moving the national average that is used as the line on this site.

Award minimums and the national minimum wage

From 1 July 2026, the national minimum wage is $26.44 an hour, or $1,004.90 a week on a 38-hour week, which is about $52,255 a year. Award minimums rose by 4.75% in the same review. If your car allowance salary package is based on an award rate, the allowance is on top of that minimum. So a worker on the award rate plus a car allowance could end up with a total package that is still below the national full-time average, depending on the industry and state.

Putting it together

A car allowance salary package is not a single figure. It depends on your award classification, your state, and whether the allowance is treated as ordinary earnings or an expense reimbursement. The national average of $108,352 is a useful reference point, but your own package may be higher or lower for reasons that have nothing to do with your skills or experience.

To see where your salary sits, you can place a salary on the line and compare it to the national average. You can also explore states and territories to see how your location affects the comparison. For a deeper look at how the ABS and Fair Work set these figures, visit How the figures are set.

Understanding the gender pay gap and medians

The ABS also reports that the gender pay gap in average weekly ordinary full-time earnings fell to 11.3% in May 2026, the lowest on record. That gap means women’s average full-time earnings are about $100,594 a year, compared to men’s $113,412. A car allowance package might narrow or widen that gap depending on the industries and awards where women and men are concentrated.

Medians give another perspective. The full-time median of $90,532 is lower than the average because high earners pull the average up. If your car allowance salary package is around the median, you are earning more than half of full-time workers but less than the average. That is a common position for many workers in industries like healthcare, social assistance, or retail, where car allowances are common.

Final thoughts

A car allowance salary package is a valuable part of total remuneration, but it does not automatically mean you are above the national line. The state you work in, the award that covers you, and how the allowance is classified all play a role. Use the tools on this site to see where your pay sits, and remember that the national average is just one point of comparison.

Questions

What is a car allowance salary package?

A car allowance is a regular payment an employer gives you to cover the costs of using your own vehicle for work. It can be paid as part of your salary package, either as a separate allowance or included in your base salary. The amount is often set by a modern award or an enterprise agreement, and it may be treated as part of your ordinary time earnings for superannuation and some award calculations.

How does a car allowance affect my pay compared to the national average?

A car allowance adds to your total cash earnings, so it can push your package above the national full-time average of $108,352 a year. However, the allowance itself is not always counted in the ABS Average Weekly Earnings measure if it is a reimbursement or an expense-related allowance. The effect depends on whether the allowance is classified as ordinary time earnings or as an expense allowance. Award rates and state location also influence how your total pay compares to the national line.

Which states have the highest average earnings?

According to the ABS Average Weekly Earnings for May 2026, the Australian Capital Territory has the highest full-time average at about $119,090 a year, followed by Western Australia at about $115,825. New South Wales is around $109,658, Victoria $106,137, Queensland $106,064, South Australia $102,450, the Northern Territory $103,173, and Tasmania $96,008. These state averages can help you see where a car allowance salary package might sit relative to others in your region.

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