How car lease salary packaging affects your pay relative to the national average
Car lease salary packaging is a common benefit in Australian workplaces, allowing you to pay for a car and running costs from your pre-tax salary. This reduces your taxable income and can boost your take-home pay. But how does it affect where your salary sits against the national full-time average? The short answer is that the national average is a gross figure, so your base salary remains the benchmark. However, the value of packaging can change your perception of where you stand.
The national full-time average as a benchmark
The ABS Average Weekly Earnings for May 2026 puts the national full-time adult ordinary-time average at $2,083.70 per week, or about $108,352 per year. This is the line used on this site. When you place a salary on the line, you compare your gross ordinary-time earnings to this figure. Car lease salary packaging does not alter your gross salary; it is a deduction that lowers your taxable income. So if your base salary is $100,000, you are below the national average regardless of packaging. Your packaging may make your net income higher, but the comparison is always on gross.
State differences matter
State full-time averages vary significantly. For example, the Australian Capital Territory has the highest average at about $119,090, while Tasmania is lowest at about $96,008. If you work in a state with a higher average, your gross salary may need to be higher to sit above the national line. Car lease packaging is more common in certain industries and states, but it does not change the state average itself. You can explore states and territories to see how your location affects the benchmark.
Award and minimum wage considerations
The national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, or about $52,255 per year on a 38-hour week. Award minimums rose by 4.75% from that date. Salary packaging cannot reduce your cash pay below the minimum wage or your award rate. If you are on an award, your base rate is set by Fair Work, and any packaging is an additional benefit above that floor. This means that even with packaging, your gross salary must at least meet the minimum. For many workers on awards, the gross salary is lower than the national average, so packaging helps close the gap in net terms but does not move the gross figure.
Medians provide another perspective
The full-time median salary is about $90,532, and the all-employees median is about $74,100 (ABS Employee Earnings, August 2025). These medians are lower than the average because high earners pull the average up. If your gross salary is around the median, you are below the national average line. Car lease packaging can make your total remuneration more competitive, but the site's line remains the gross average. Understanding the difference between averages and medians is important when evaluating your pay.
How to use this site
You can place a salary on the line to see how your gross salary compares to the national average. The tool also shows your weekly and hourly equivalents on a 38-hour week, plus the distance from the line. For more detail on how figures are set, see How the figures are set. Remember that salary packaging is a separate consideration; it does not change the gross figure you enter.
Summary
Car lease salary packaging is a valuable benefit that can increase your net income, but it does not affect your gross salary comparison to the national average. Your base salary is what matters for the line. State averages and award minimums provide additional context. Always check your gross ordinary-time earnings against the ABS figures to see where you truly sit.