Understanding the smart salary novated lease
A smart salary novated lease is a vehicle financing arrangement that uses salary packaging. Your employer agrees to deduct lease payments from your pre-tax salary, reducing your taxable income. The lease covers the car's cost, running expenses, and often includes maintenance and insurance. The ATO sets rules for fringe benefits tax (FBT) on such arrangements.
Because the lease is deducted before tax, your take-home pay will be lower than your gross salary. The national full-time average is $108,352 per year (ABS Average Weekly Earnings, May 2026). This is the site's line. The tool shows your weekly and hourly amounts on a 38-hour week, plus distance from the line.
How it compares to the national full-time average
The national full-time average is $108,352. This is the average for full-time adult ordinary-time earnings. The men's full-time average is $113,412 and women's $100,594. The full-time median is $90,532, and all-employees median $74,100. These are from ABS Employee Earnings, August 2025.
Your salary when using a smart salary novated lease – there is no published figure for the lease itself. The lease is a packaging method, not a salary. Your salary is whatever your employer pays you. The site accepts a yearly salary before tax. The tool shows distance from the line.
Tax and salary packaging implications
For 2026–27, resident tax rates: nil to $18,200; 15% to $45,000; 30% to $135,000; 37% to $190,000; 45% above. Medicare levy 2% before reductions. A novated lease reduces taxable income, potentially lowering your tax bracket. The ATO governs FBT on car benefits.
State full-time averages vary: 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. These are from ABS Average Weekly Earnings, May 2026.
Where to find more
Place a salary on the line to see how your pay compares. States and territories show averages by state. Job medians and Industry medians provide medians. Guides explain salary packaging. How the figures are set explains data sources. About this site has more.
The national minimum wage from 1 July 2026 is $26.44 per hour, $1004.9 per week, about $52,255 per year on 38 hours. Award minimums rose 4.75%. This is from Fair Work.
Summary
A smart salary novated lease is a salary packaging option. No specific salary figure is published for it. The national full-time average is $108,352. Your salary determines your distance from the line. Use the tool to see where you sit.