Salary sacrifice car loan and your pay
A salary sacrifice car loan lets you pay for a car using pre-tax income. Your employer deducts the loan payments from your gross salary before tax is calculated, lowering your taxable income. This can reduce the tax you pay, but it also changes the salary figure you see on this site.
On Average line, you enter your yearly salary before tax. That figure is your taxable income after any salary sacrifice arrangements. So if you sacrifice part of your salary for a car loan, the number you enter is lower than your gross pay. The site then compares that amount to the national full-time average.
How the comparison works
The national full-time average used on this site is the ABS Average Weekly Earnings, May 2026: $2,083.70 a week, or about $108,352 a year (multiplied by 52). This is the line on the chart. Your entered salary is shown as a point on that line, along with your weekly and hourly pay based on a 38-hour week.
If your salary after sacrifice is below $108,352, the site will show you below the average. If it is above, you sit above the line. But remember: your pre-sacrifice salary may be higher. The site only sees the taxable figure.
Other benchmarks
For context, the full-time median salary is about $90,532 (ABS Employee Earnings, August 2025). The all-employees median is about $74,100. The national minimum wage from 1 July 2026 is $26.44 an hour, $1,004.90 a week, or about $52,255 a year on 38 hours. Award minimums rose 4.75% from that date.
State full-time averages also vary. For example, New South Wales is about $109,658, Victoria about $106,137, Queensland about $106,064, South Australia about $102,450, Western Australia about $115,825, Tasmania about $96,008, Northern Territory about $103,173, and the Australian Capital Territory about $119,090. If you live in one of these states or territories, you can compare your salary after sacrifice to the local average as well.
Tax implications
Salary sacrifice reduces your taxable income, which may move you into a lower tax bracket. For 2026–27, resident 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 income, you pay less tax and Medicare levy, but you also reduce your reported salary on this site.
What the site does not show
The site does not calculate Fringe Benefits Tax (FBT) or the cost of the car loan. It only shows your pay after salary sacrifice. If your employer passes on the FBT cost, your net benefit may be smaller. The site also does not account for other deductions or tax offsets. For a full picture, consult the ATO or a tax professional.
Using the site with a salary sacrifice car loan
Place a salary on the line to see where your taxable salary sits. You can also compare to state and territory averages. Remember that the figure you enter should be your salary after any salary sacrifice deductions. If you are unsure, check your payslip or employment contract.
Summary
A salary sacrifice car loan can lower your taxable income, which may make your pay appear below the national full-time average on this site. That does not necessarily mean you earn less overall – your pre-sacrifice salary might be above average. The site uses the ABS Average Weekly Earnings as its line, and you can also compare to medians and state averages. Always consider the full financial impact, including FBT and loan costs, before entering into a salary sacrifice arrangement.
For more details on how the figures are set, see About this site and How the figures are set.