Salary Packaging a Car and the National Line
When you salary package a car, you are using a novated lease to pay for a vehicle from your pre-tax salary. This reduces your taxable income and can lower your tax bill, but it does not change the gross salary that the site uses to place you on the line. The national full-time adult ordinary-time average is $108,352 a year (ABS Average Weekly Earnings, May 2026). That figure is before any salary packaging deductions. So if you earn $108,352 and package a car, your gross salary is still $108,352. The line does not move.
Why State and Award Matter
Your state or award can shift your pay relative to the national average for reasons that have nothing to do with packaging. The site shows state full-time averages from the same ABS survey:
- 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 Western Australia, your pay is likely above the national line. In Tasmania, it is below. These differences reflect industry mix, cost of living, and local labour markets. Salary packaging a car does not change that state effect.
Awards also set minimum pay rates. From 1 July 2026, the national minimum wage is $26.44 an hour, $1,004.9 a week, or about $52,255 a year on 38 hours. Award minimums rose 4.75% that year. If your award sets a lower rate than the average, your gross salary will be below the line. Salary packaging cannot lift your gross pay; it only changes how much tax you pay.
How the Site Measures Your Pay
The site accepts a yearly salary before tax. It shows a week and an hour on a 38-hour week, plus distance from the full-time average. That average is $2,083.7 a week. The median full-time salary is about $90,532 (ABS Employee earnings, August 2025). The all-employees median is about $74,100. These are different measures. The line is the average, not the median.
If you salary package a car, your employer reports your gross salary to the ABS. The packaging arrangement is a deduction from that gross amount. So your position on the line is based on your gross salary, not your packaged amount.
Tax and Salary Packaging
Resident tax rates for 2026–27 are: nil to $18,200; 15% to $45,000; 30% to $135,000; 37% to $190,000; 45% above that. Medicare levy is 2% before reductions. Salary packaging a car reduces your taxable income, so you may fall into a lower bracket. But the site's line is pre-tax. Your distance from the line is based on your gross salary, not your tax outcome.
Practical Considerations
If you are comparing your salary to the national average, remember that the line is a gross figure. Salary packaging does not change that. However, your award or enterprise agreement may limit how much you can package. Some awards allow salary packaging only for certain items. Check your award or agreement.
State taxes on cars also vary. For example, stamp duty on a car purchase differs by state. That affects the cost of a novated lease but not your gross salary. The site's line is about earnings, not living costs.
To see where your gross salary sits, Place a salary on the line. You can also compare state averages on the States and territories page. For more on how the figures are set, see How the figures are set.
Summary
Salary packaging a car is a tax-effective way to pay for a vehicle, but it does not move your gross salary relative to the national full-time average. Your state and award can shift your pay because of different average earnings and minimum rates. The site uses gross salary before packaging, so your position on the line reflects your base earnings. Use the tools on this site to see where you stand.