How does salary sacrifice EV affect my take-home pay?

Salary sacrificing an electric vehicle (EV) reduces your taxable income by the amount sacrificed, lowering the tax and Medicare levy you pay. The employer may also save on fringe benefits tax (FBT) for eligible EVs. However, your super guarantee is based on your ordinary earnings before sacrifice, so super contributions may not decrease. Use the calculator to see the net effect after tax and super.

What is the difference between the National Minimum Wage and award rates?

The National Minimum Wage ($26.44 per hour from 1 July 2026) is the base rate for employees not covered by an award or agreement. Award rates are set by the Fair Work Commission for specific industries and occupations and are often higher. Casual employees receive a 25% loading on top of the minimum or award rate. Always check your award for the correct minimum.

Hourly to Annual Pay Calculator: Salary Sacrifice EV and Tax Guide

Q: How is superannuation calculated on my annual pay?

Super guarantee is 12% of your ordinary earnings (your base hourly rate times hours worked), paid on top of your salary. It is not deducted from your pay. The maximum contribution base is $270,830 per year; earnings above that do not attract super. Salary sacrifice arrangements may reduce the ordinary earnings base for super purposes.

For a standard 38-hour week, your annual gross pay is your hourly rate multiplied by 38 and then by 52.

How to Convert Hourly Rate to Annual Pay

To estimate your annual gross pay, multiply your hourly rate by the number of hours you work each week and then by 52 weeks. For a full-time employee working 38 hours per week, the formula is:

Annual gross = hourly rate × 38 × 52

This calculation assumes you work the same hours every week, with no unpaid overtime, penalty rates, allowances, or salary sacrifice. If you work part-time or casual hours, adjust the weekly hours accordingly. The result is your gross annual income before tax, Medicare levy, and super.

Fortnightly and Monthly Pay

Your fortnightly gross pay is simply your weekly pay multiplied by 2. For a 38-hour week, that is hourly rate × 38 × 2. Monthly pay is roughly annual gross divided by 12, but actual pay cycles may vary. Many employers pay fortnightly, so knowing your fortnightly amount helps with budgeting.

Tax and Medicare Levy for 2026–27

The Australian Taxation Office (ATO) uses a progressive tax scale for residents. For 2026–27, the tax-free threshold is $18,200. Above that, you pay:

15% on income from $18,201 to $45,000
30% on income from $45,001 to $135,000
37% on income from $135,001 to $190,000
45% on income above $190,000

In addition, the Medicare levy is generally 2% of your taxable income. The 2025–26 single reduction thresholds are used here because the 2026–27 thresholds were not confirmed. If your income is below those thresholds, the levy may be reduced or waived. The calculator on this site applies the full 2% levy for simplicity.

Salary Sacrifice EV and Tax

A popular way to reduce your taxable income is through a salary sacrifice ev arrangement. By sacrificing part of your pre-tax salary to lease or run an electric vehicle, you lower your assessable income, which can reduce the tax and Medicare levy you pay. For example, if you sacrifice $10,000 per year, your taxable income drops by that amount, potentially moving you to a lower tax bracket. The employer may also benefit from FBT exemptions for eligible EVs. However, note that super guarantee is calculated on your ordinary earnings before sacrifice, so your super contributions remain based on your original hourly rate. The calculator does not automatically deduct salary sacrifice; you can manually adjust your hourly rate to reflect the sacrifice amount.

Superannuation Guarantee

Your employer must pay super guarantee of 12% of your ordinary earnings, paid on top of your gross pay. For a 38-hour week, super is 12% of (hourly rate × 38) and is not deducted from your pay. The maximum contribution base is $270,830 per year; earnings above that do not attract super. This site estimates super at 12% of ordinary earnings only, stopping at the cap.

National Minimum Wage and Award Rates

The National Minimum Wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week for 38 hours. Casual employees receive a 25% casual loading of 25%, making it $33.05 per hour (including loading). Award rates set by the Fair Work Commission may be higher. The casual loading is added on top of the base rate. Always check your award or agreement.

Average Weekly Earnings Reference

The Australian Bureau of Statistics (ABS) Average Weekly Earnings for May 2026 show full-time adult ordinary time at $2,083.70 per week. All employees total earnings average $1,579.20 per week (includes part-time). These are averages, not medians for any specific job. Use the average pay page for more context.

Using the Timesheet Calculator

Our timesheet allows you to enter your base hourly rate. A checkbox adds 25% casual loading on top. Do not enter a rate that already includes casual loading. The calculator then shows your annual, fortnightly, and monthly gross pay, plus estimated tax and super. For salary sacrifice, you can reduce the hourly rate to reflect the sacrifice amount.

Important Notes

This estimate assumes the same rate every week, no unpaid overtime, no penalty rates, no allowances, and no salary sacrifice. Super is estimated at 12% of ordinary earnings only, paid on top, and stops at the $270,830 maximum contribution base. Tax uses the 2026–27 resident scale with full tax-free threshold. Medicare uses the 2025–26 single reduction thresholds because the 2026–27 reduction thresholds were not confirmed here. HELP, the Medicare levy surcharge, and salary packaging are not deducted. This is an estimate, not a determination of your pay or tax.

For more detailed information, see our pay guides and reference tables.