How salary sacrifice novated leases affect your pay compared to the national average
When you enter a salary sacrifice novated lease, your employer deducts lease payments and running costs from your pre-tax salary. This arrangement is governed by the Australian Taxation Office (ATO) and can reduce your taxable income. But how does it affect where your pay sits against the national full-time average?
The national full-time average used on this site is the ABS Average Weekly Earnings for May 2026: $2,083.70 per week, or about $108,352 per year. This figure represents gross ordinary-time earnings before any salary sacrifice or deductions. That means a novated lease does not change the earnings figure used to calculate the average. Your pay against the line remains the same as if you had not salary sacrificed.
What moves your pay above or below the average
Your gross salary is the primary factor. If you earn more than $108,352 a year, you sit above the national full-time average. If you earn less, you sit below. Bonuses, overtime, and allowances can push you above. Part-time work or a lower award rate can pull you below.
Salary sacrifice through a novated lease does not move your gross salary. However, it does affect your taxable income and take-home pay. For example, if your gross salary is $110,000, you are above the average. After a novated lease, your taxable income might fall to $100,000, but your gross salary is still $110,000. The comparison to the average uses the gross figure.
The role of the ATO and novated lease calculators
The ATO provides guidelines and a calculator to help you estimate the fringe benefits tax (FBT) on a novated lease. The calculator takes into account the car's value, the percentage of business use, and the lease term. It shows how much you could save in tax and how much FBT you might owe. The ATO does not publish a single figure for typical savings because each arrangement is different.
If you are considering a novated lease, use the ATO's calculator to see how your taxable income changes. Then compare your gross salary to the national average using this site's tool. Remember, the average is a benchmark for full-time ordinary-time earnings, not for taxable income.
Other factors that affect the comparison
The national full-time average varies by state and territory. For instance, the Australian Capital Territory has the highest average at about $119,090, while Tasmania has the lowest at about $96,008. If you work in a state with a higher average, you may need a higher salary to sit above the line.
Medians also provide context. The full-time median is about $90,532, and the all-employees median is about $74,100. These are based on ABS Employee Earnings for August 2025. If your salary is below the median but above the minimum wage, you are still below the average but not necessarily low-paid.
The national minimum wage 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. This is well below the average. Award minimums rose by 4.75% from that date.
Using the site's tools
You can place a salary on the line to see how it compares to the national full-time average, the median, and the minimum wage. The tool shows your weekly and hourly pay on a 38-hour week, plus the distance from the average.
For more detail on how the figures are set, see How the figures are set. The ABS publishes Average Weekly Earnings twice a year, in May and November. The medians are updated less frequently.
Summary
A salary sacrifice novated lease does not change your gross ordinary-time earnings, so it does not move your pay relative to the national full-time average. However, it can reduce your taxable income and affect your tax bracket. Use the ATO's calculator to estimate the impact, and use this site's tool to see where your gross salary sits against the line.