How Electric Car Salary Sacrifice Works
An electric car salary sacrifice arrangement lets you trade part of your pre-tax salary for the use of an electric vehicle. Your employer pays for the car and running costs from your sacrificed salary, and because many electric cars are exempt from fringe benefits tax (FBT) under ATO rules, the tax savings can be significant. The result is a lower taxable income, which reduces the amount of income tax and Medicare levy you pay. However, your cash salary—the figure you would enter on this site—is reduced by the sacrifice amount.
For example, if your gross salary is $120,000 and you sacrifice $15,000, your taxable income becomes $105,000. Your employer reports that $105,000 as your salary for PAYG purposes. That is the figure you would compare against the national full-time average of $108,352 (ABS Average Weekly Earnings, May 2026).
Impact on Your Salary Compared to the Average
The national full-time average is $108,352 per year, or $2,083.70 per week. This is the line on this site. If your cash salary after sacrifice is below that, you sit below the line; if above, you sit above. Because a salary sacrifice reduces your cash salary, many employees with such arrangements will find their cash pay below the average—unless their gross salary was well above it.
Consider the full-time median of about $90,532 (ABS Employee earnings, August 2025). A typical salary sacrifice might bring a $100,000 gross salary down to $85,000–$90,000, placing it near the median. The all-employees median is about $74,100, so even a modest sacrifice can push a salary below that if the gross is low.
The site also shows your weekly and hourly pay based on a 38-hour week. For instance, a cash salary of $90,000 gives about $1,730.77 per week and $45.55 per hour. That is below the national average weekly pay of $2,083.70.
State and Industry Considerations
State averages vary. For example, the Australian Capital Territory has the highest full-time average at about $119,090, while Tasmania has the lowest at about $96,008. If you work in a high-average state like Western Australia ($115,825) or New South Wales ($109,658), your cash salary after sacrifice might still be above the national average if your gross is high enough. In lower-average states, a sacrifice is more likely to push you below the national line.
Industry also matters. The site's industry medians show that some sectors, like mining or IT, have higher typical pay, making a sacrifice less likely to drop you below the average. In retail or hospitality, where pay is lower, a sacrifice could bring your cash salary well below the median.
Tax Implications and the Line
The ATO's 2026–27 tax rates apply: nil up to $18,200, then 15% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above that, plus the 2% Medicare levy. A salary sacrifice reduces your taxable income, potentially moving you into a lower bracket. For example, a gross salary of $120,000 sacrificed to $105,000 drops from the 37% bracket (over $135,000? Actually $120,000 is in the 30% bracket? Wait: 30% is $45,001 to $135,000, so $120,000 is 30% plus Medicare. Sacrificing to $105,000 keeps you in the same bracket but reduces the tax payable. The real benefit is the FBT exemption, which can save thousands compared to a non-electric car.
However, the site's line is based on your cash salary before tax. So if you sacrifice, you are effectively choosing a lower cash salary in exchange for a non-cash benefit. That means your position on the line will be lower than your total remuneration suggests. To see where your total package sits, you would need to estimate the value of the car benefit and add it to your cash salary, but the site only measures cash.
What Moves Your Pay Above or Below the Average
Several factors determine whether your cash salary after an electric car sacrifice is above or below the national average:
- Your gross salary: The higher your gross, the more room you have to sacrifice and still stay above the average.
- The sacrifice amount: Typical sacrifices range from $10,000 to $20,000 per year for a new electric car. A larger sacrifice pushes your cash salary down further.
- Your state or territory: As noted, state averages differ. If you live in a high-average state, you may need a higher gross to stay above the national line.
- Your industry: Industry medians provide context. For example, the median in professional services may be higher than in hospitality.
If your cash salary is below the average, the site will show a negative distance from the line. If above, a positive distance. You can place a salary on the line to see exactly where you stand.
Guides and Further Reading
For more on how salary sacrifice interacts with your pay, see the guides on fringe benefits and tax. You can also explore how the figures are set to understand the sources behind the averages and medians.
Remember: the national full-time average is updated twice a year by the ABS (May and November). The figures here are from May 2026. The minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, or about $52,255 per year on 38 hours. Award minimums rose 4.75% from that date. Your cash salary after sacrifice should still be above the minimum wage to be legal.
In summary, an electric car salary sacrifice typically reduces your cash salary, often moving it below the national full-time average. But the total value of your remuneration—cash plus car—may be higher. Use this site to compare your cash salary against the line, and consider the non-cash benefits separately.