Kia salary sacrifice and the national average
Salary sacrifice lets you exchange part of your pre-tax salary for a benefit, such as a Kia vehicle through a novated lease. The amount sacrificed reduces your taxable income, but your employer still reports your full ordinary-time earnings to the Australian Bureau of Statistics (ABS) for the Average Weekly Earnings survey. That means the national full-time average of $108,352 a year (ABS Average Weekly Earnings, May 2026) is based on gross pay before any sacrifice. If you earn exactly that amount and sacrifice $15,000 for a Kia, your taxable income falls to $93,352, but the ABS still records you at $108,352. Your personal position against the line therefore depends on your gross salary, not your post-sacrifice income.
The national full-time median is lower at about $90,532 (ABS Employee earnings, August 2025), and the all-employees median is about $74,100. These medians are also gross figures. Salary sacrifice does not affect how the ABS calculates medians, but it can make your taxable income appear much lower than the median. For tax purposes, the 2026–27 resident 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 a 2% Medicare levy. Sacrificing a Kia can push you into a lower tax bracket, which is why many employees in higher tax brackets use salary packaging.
How state averages shift the line
State full-time averages vary widely, and your location affects where your gross salary sits relative to the national line. The on-site state figures are:
- New South Wales: $109,658
- Victoria: $106,137
- Queensland: $106,064
- South Australia: $102,450
- Western Australia: $115,825
- Tasmania: $96,008
- Northern Territory: $103,173
- Australian Capital Territory: $119,090
If you work in the ACT and salary sacrifice a Kia, your gross salary is likely above the national average of $108,352. In Tasmania, the average is $96,008, so even without sacrifice you are below the line. The sacrifice itself does not move the state average, but it changes your personal taxable income. When comparing your pay to the national line, remember that the line is a gross figure. A Tasmanian worker on $96,008 who sacrifices $10,000 for a Kia still has a gross salary below the national average. A Western Australian worker on $115,825 who sacrifices the same amount remains above the line.
Men's full-time ordinary-time average is about $113,412; women's is about $100,594. These gender averages also affect how salary sacrifice compares. A woman on the female average who sacrifices a Kia may drop her taxable income below the all-employees median, while a man on the male average may still be above the national line.
Award coverage and minimum wages
Salary sacrifice cannot reduce your gross pay below the applicable minimum wage or award rate. From 1 July 2026, the national minimum wage is $26.44 an hour, $1,004.90 a week, or about $52,255 a year on a 38-hour week (Fair Work). Award minimums rose 4.75% from that date. If you are covered by an award, your base salary must meet the award rate before any sacrifice. For example, if your award sets a minimum of $55,000 a year, you cannot sacrifice so much that your gross pay falls below $55,000. The sacrifice comes out of the amount above the minimum.
This is important when comparing your pay to the national line. If you are on an award rate near the minimum, your gross salary may be well below the $108,352 average. Salary sacrificing a Kia in that situation is unlikely because there is little room above the minimum. Higher-paid employees under enterprise agreements or individual contracts have more flexibility. The state averages also reflect the mix of award-covered and non-award workers. States with higher proportions of award-reliant industries, like hospitality or retail, tend to have lower average earnings.
Practical considerations for Kia salary sacrifice
A novated lease for a Kia typically includes running costs (fuel, insurance, maintenance) and the lease payment. The total sacrifice is deducted from your pre-tax salary. Your employer may charge a administration fee. The ATO sets caps on certain benefits, but for cars there is no statutory cap on the lease amount; however, the fringe benefits tax (FBT) rules apply. The taxable value of the car benefit is calculated using the statutory formula or operating cost method. Salary sacrifice reduces your taxable income, but you may still have FBT payable by your employer, which can be passed on to you.
When you place a salary on the line, the tool uses your gross annual salary before tax. If you are salary sacrificing a Kia, enter the full amount your employer reports to the ATO – that is, your ordinary-time earnings before the sacrifice. The tool will show your weekly and hourly rate on a 38-hour week and the distance from the full-time average. That distance is based on gross pay, not your take-home amount.
State differences also affect the comparison. Use the states and territories page to see how your state's average compares to the national line. If you live in a high-average state like the ACT or Western Australia, your gross salary may be above the line even after accounting for a modest sacrifice. In a low-average state, you may be below the line regardless.
Summary
Kia salary sacrifice does not change the ABS average or median figures. It does change your taxable income and take-home pay. Your position relative to the national line of $108,352 depends on your gross salary, which is influenced by your state's average earnings and your award or agreement. Always use your full gross salary when comparing to the line. The on-site tool accepts a yearly salary before tax and shows the distance from the full-time average. For more detail on how the figures are set, see How the figures are set.