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The real dollar value of a fully maintained company vehicle compared with a cash car allowance for Australian sales roles.
Updated July 2026
A fully maintained company car is typically worth around $30,000 to $31,000 a year in salary terms once you account for the vehicle, running costs and FBT, compared with a typical $15,000 to $25,000 car allowance for the same sales role, sometimes with a fuel card or etag added on top. The gap is real money, and it's the single most misunderstood part of a sales package.
A fully maintained company vehicle (FMCV) for a sales role commonly comes in around $30,980 a year once you factor in the vehicle cost, fuel, servicing, insurance and registration, with roughly $10,755 of that made up by fringe benefits tax (FBT) the employer carries. Compare that to a typical $15,000 to $25,000 car allowance, paid as cash and taxed as ordinary income (sometimes with a fuel card or etag included, which offsets running costs but doesn't change the tax treatment), and the FMCV is worth substantially more even before you account for the admin the employee doesn't have to think about.
In salary terms, a fully maintained company vehicle isn't a like-for-like swap with a car allowance of the same headline number. A $15,000 to $25,000 allowance and a $30,980 FMCV sound like closer numbers than they are once tax treatment is factored in. Run both through a proper comparison rather than assuming a bigger allowance figure always wins. Use the company car package calculator to compare your specific offer.
A company car adds value in two ways: the direct running-cost saving (fuel, servicing, insurance, rego you're no longer paying personally) and the tax treatment, since FBT is carried by the employer rather than taxed as your income. Between the two, a fully maintained vehicle can add meaningfully more take-home value than an equivalent-looking cash allowance, even when the allowance number looks larger on the offer letter.
The gap between a car allowance and a fully maintained vehicle for the same role typically runs $5,000 to $12,000 a year in real value, depending on how the allowance is structured and how many kilometres the role actually covers. Higher-kilometre field roles (BDMs covering a wide territory) tend to favour the FMCV more heavily, since running costs scale with distance and the employer is absorbing that cost either way.
An allowance is administratively simpler and gives the employee flexibility, but it's usually the cheaper option for the business in real terms once FBT and running costs are compared properly. An FMCV costs the business more but is a stronger recruitment and retention lever, particularly for high-kilometre field roles where candidates already know what running costs look like. Run the numbers on your own package before deciding which structure to offer.
Compare an allowance against a fully maintained vehicle or novated lease for your specific package. Built for Australian sales roles.
Open the calculatorThese figures provide estimates only. Always consult a registered tax agent for advice specific to your situation.
A fully maintained company car is commonly worth around $30,000 to $31,000 a year once vehicle costs, running costs and FBT are factored in, compared with a typical $15,000 to $25,000 cash car allowance for the same role (sometimes with a fuel card or etag added).
A company car calculator compares the real value of a car allowance against a fully maintained vehicle or novated lease, accounting for running costs and tax treatment. Try the calculator here.
It depends on the numbers, but a fully maintained vehicle is often worth more in real terms than a same-looking cash allowance, because FBT is carried by the employer rather than taxed as the employee's income.
A fully maintained company vehicle is generally not taxed as employee income the way a cash car allowance is, since the employer carries the FBT. It is not free of consequences though. The grossed-up value of the benefit appears on your income statement as a Reportable Fringe Benefits Amount, which lifts your adjusted taxable income. That can increase your compulsory HECS or HELP repayments and can trigger the Medicare Levy Surcharge if you do not hold private hospital cover. This is general information, not tax advice. Always check your specific situation with a registered tax agent.
A fuel card or etag reduces some of the employee's day-to-day running costs on top of an allowance, but it doesn't change the tax treatment of the cash allowance itself. It narrows the gap slightly without closing it.
Commonly $5,000 to $12,000 a year in real value on top of an equivalent car allowance, more for high-kilometre field roles. Compare your offer with the calculator.
Written by James Bowesman, specialist sales recruiter for building products, lighting, and A&D markets across Australia.
Have a question about car allowances or packages? Get in touch at james@specifiedselect.com