Car Salary Sacrifice and the National Average
Car salary sacrifice is a common form of salary packaging in Australia. It lets you give up part of your pre-tax salary in exchange for a car (including running costs) provided by your employer. The sacrificed amount is not subject to income tax, which lowers your taxable income. But how does this affect where your pay sits against the national full-time average? The answer depends on your state, your award, and how you report your salary.
What the National Average Represents
The national full-time adult ordinary-time average is $2,083.70 per week, or about $108,352 per year (ABS Average Weekly Earnings, May 2026). This figure is based on ordinary-time earnings before any salary sacrifice arrangements. It does not include fringe benefits such as a car. When you use the on-site tool, you enter your yearly salary before tax. If you salary sacrifice a car, your taxable salary is lower than your total remuneration package. For a fair comparison, you should enter the salary you actually receive in cash, not the value of the car benefit.
State Differences Matter
Where you live can change how your salary compares to the national line. State full-time averages vary significantly. For example, the Australian Capital Territory has the highest average at about $119,090, while Tasmania has the lowest at about $96,008. If you work in the ACT and salary sacrifice a car, your taxable salary might still be above the national average, even after the sacrifice. In Tasmania, the same sacrifice could bring your taxable salary below the national average. The on-site tool shows your distance from the national line, but you can see state-by-state figures on the States and territories page.
Award and Minimum Wage Considerations
Your award or enterprise agreement may set minimum pay rates that cannot be undercut by salary sacrifice. 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. If your salary after car sacrifice falls below the minimum wage or your award rate, the arrangement is not lawful. Your employer must ensure you receive at least the minimum cash wage. This means that for low-paid workers, car salary sacrifice may not be an option, or the sacrifice amount must be limited.
Medians and Averages: Different Benchmarks
The national full-time median 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 you salary sacrifice a car, your taxable salary might be closer to the median than the average. For example, a worker earning $100,000 before sacrifice could have a taxable salary of $85,000 after a $15,000 car sacrifice. That is below the full-time average but above the full-time median. The on-site tool compares your salary to the average, not the median, but understanding both gives context.
Gender and the National Line
Men's full-time ordinary-time average is about $113,412, and women's is about $100,594. Car salary sacrifice is more common in industries with higher male employment, such as sales and trades. This can affect how the sacrifice changes the distance from the national line for different groups. However, the on-site tool uses the overall average, not gender-specific figures.
Tax Implications
Salary sacrificing a car reduces your taxable income, which can lower the tax you pay. For the 2026–27 year, tax rates 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. The Medicare levy of 2% applies before any reductions. By lowering your taxable salary, you may move into a lower tax bracket. However, the car benefit may be subject to Fringe Benefits Tax (FBT), which your employer may pass on. This can reduce the net benefit. The on-site tool does not calculate tax, but you can see how your salary compares to the national line.
How to Use the On-Site Tool
Enter your yearly salary before tax. The tool shows your weekly and hourly equivalent based on a 38-hour week, and your distance from the national full-time average. If you salary sacrifice a car, enter the cash salary you receive, not the total package. The tool will then show where that cash salary sits relative to the line. For more detail on how the figures are set, see How the figures are set.
Summary
Car salary sacrifice can make your taxable salary appear lower than the national average, but your total remuneration may be higher. State averages, award minimums, and tax brackets all influence the comparison. Always check your award or agreement before entering into a salary sacrifice arrangement. The national average is a useful benchmark, but your personal circumstances—location, industry, and award—can move your pay off the line.