How Salary Sacrifice for a New Car Fits Into the National Picture
When you compare your pay to the national full-time average, the figure you see on this site is your gross salary before tax and before any salary sacrifice arrangements. The national line is set by the ABS Average Weekly Earnings, May 2026: $2,083.70 per week, or about $108,352 a year. That is the average ordinary-time earnings for a full-time adult employee across Australia. But if you are using salary sacrifice to lease a new car, you might wonder how that changes where you sit. The short answer is that salary sacrifice does not alter your gross salary, so the comparison to the national average remains the same. However, the tax savings can affect your take-home pay, and your state or award can push your gross salary above or below the line.
What Salary Sacrifice for a New Car Actually Does
Salary sacrifice for a new car is an arrangement where your employer agrees to deduct the lease payments and running costs from your pre-tax salary. The ATO sets rules around fringe benefits tax and the statutory formula or operating cost method. Because the deduction comes out before tax, your taxable income is lower, and you pay less income tax and Medicare levy. But your gross salary—the figure reported to the ABS and used in the national average—does not change. The ABS collects data on gross ordinary-time earnings, not after any salary packaging. So if your gross salary is $90,000, that is the figure compared to the national average, regardless of whether you salary sacrifice a car. The exact savings from salary sacrifice depend on your marginal tax rate and the car's cost; there is no published average figure for how much Australians save through this method.
Why State Averages Matter
Your location can make a big difference to how your pay compares to the national line. The ABS publishes state full-time averages from the same survey. For May 2026, the 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 live in the ACT or Western Australia, the state average is well above the national line. A gross salary of $108,352 would be below the ACT average, meaning you are earning less than the typical full-time worker in your state. In Tasmania, the same salary is well above the state average. Salary sacrifice does not change this gross comparison, but it can improve your net position. For example, if you are in a high-tax bracket, the tax saved on a car lease might bring your effective take-home closer to what someone in a lower-tax state earns. The States and territories page lets you see how your salary compares to your local average.
Award and Minimum Wage Considerations
Awards and the national minimum wage set a floor for many workers. Fair Work sets the national minimum wage, which from 1 July 2026 is $26.44 per hour, $1,004.90 per week, or about $52,255 per year on a 38-hour week. Award minimums rose by 4.75% at the same time. If you are paid under an award, your gross salary is determined by that award's classification. Many award rates are below the national full-time average, so workers on awards often sit below the line. Salary sacrifice for a new car is not a right under most awards; it requires an agreement with your employer. Some enterprise agreements may allow it, but the gross award wage remains the same. The national average includes all full-time workers, from high-earning professionals to those on award rates. That is why the median full-time earnings are lower: the ABS Employee Earnings, August 2025, show a full-time median of about $90,532 and an all-employees median of about $74,100. The average is pulled up by higher earners.
How to See Where You Sit
To find out where your gross salary stands, use the tool on this site. Place a salary on the line and enter your yearly salary before tax. The page will show you the weekly and hourly equivalents on a 38-hour week, and how far you are from the national full-time average. You can also check your state's average on the States and territories page. Remember that salary sacrifice does not change the gross figure you enter. If you want to see the effect of salary sacrifice on your net income, you would need to calculate the tax saving separately using the ATO's 2026–27 tax rates: 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, plus the 2% Medicare levy. The reduction in taxable income from a car lease can lower your tax bill, but it does not move the gross salary line.
Conclusion
Salary sacrifice for a new car is a legitimate way to reduce your tax, but it does not change the gross salary that is compared to the national average. The main reasons your pay might be off the line are your state of residence and whether you are covered by an award or the minimum wage. The national full-time average of $108,352 is a useful benchmark, but it hides significant variation. Use the resources on this site to see where you stand, and remember that salary sacrifice is a separate financial decision that affects your net income, not your position on the line.