Understanding the National Full-Time Average
The national full-time adult ordinary-time average is $2,083.70 a week, or about $108,352 a year, according to the ABS Average Weekly Earnings for May 2026. This figure is the benchmark on this site. It represents the typical full-time salary before tax and before any salary packaging.
Your take-home pay from this average depends on tax. For the 2026–27 income year, the ATO sets these resident tax rates: nil on the first $18,200, 15% on income up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above that. The Medicare levy adds 2% before any reductions. On $108,352, you would pay roughly $24,000 in tax plus the Medicare levy, leaving about $82,000 take-home. This is a sketch, not a precise calculation.
How a Novated Lease Smart Salary Works
A novated lease is a three-way agreement between you, your employer, and a finance company. Your employer deducts the lease payment from your pre-tax salary, reducing your taxable income. The 'smart salary' aspect refers to the potential to increase your take-home pay by lowering your tax bill. The lease covers the car cost, running expenses, and often includes insurance and maintenance.
Because the payment comes from pre-tax dollars, you save the tax you would have paid on that amount. For example, if your lease costs $10,000 a year and you are in the 30% tax bracket, you save about $3,000 in tax. However, the ATO may apply fringe benefits tax (FBT) on the private use of the car, which can reduce the benefit. Many novated leases are structured to minimise FBT, for instance by using the 'statutory formula' method.
Comparing Take-Home Pay with the Average
To see where a novated lease smart salary sits against the national average, consider a full-time worker earning exactly $108,352. Without salary packaging, their take-home is around $82,000. With a novated lease costing $10,000 pre-tax, their taxable income drops to $98,352. The tax on that is lower, so take-home increases by roughly $3,000 (depending on exact tax brackets). The net effect is a higher disposable income, but the worker must pay the lease from that income.
The ABS does not publish data on salary packaging arrangements, so we cannot give a precise figure for the 'smart salary' benefit. The national average is a useful reference, but your personal situation—your salary, lease cost, and FBT treatment—determines the outcome.
Medians and Minimum Wage Context
The full-time median salary is about $90,532 (ABS Employee earnings, August 2025). The all-employees median is about $74,100. These are lower than the average, meaning many workers earn less. The national minimum wage from 1 July 2026 is $26.44 an hour, or $52,255 a year on a 38-hour week (Fair Work). A novated lease is more common among higher earners because the tax savings are larger in higher brackets. On the minimum wage, salary packaging may offer less benefit due to lower tax rates.
State Variations
Full-time averages vary by state. The Australian Capital Territory has the highest at about $119,090, while Tasmania is lowest at about $96,008. Western Australia ($115,825) and New South Wales ($109,658) are above the national average. Victoria ($106,137) and Queensland ($106,064) are close. South Australia ($102,450) and the Northern Territory ($103,173) sit below. A novated lease in a higher-average state may yield greater tax savings because the salary is higher, but the lease cost and FBT rules are national.
Putting Your Salary on the Line
You can place a salary on the line to see how it compares to the national average, medians, and minimum wage. The tool shows your weekly and hourly pay on a 38-hour week, plus the distance from the full-time average. This helps you understand where you stand before considering salary packaging.
For a broader view, explore states and territories to see how averages differ across Australia. The national average is a single number, but your location and industry matter.
Conclusion
A novated lease smart salary arrangement can improve your take-home pay by reducing taxable income. The national full-time average of $108,352 is a good starting point to estimate the potential benefit. However, the exact figure depends on your salary, lease costs, and FBT. Use the site's tools to benchmark your salary, and consult a tax professional for personalised advice.