Calculator

Is Your Car Package Competitive?

Adjust the sliders to match what you're offering. See the real cost to you and the real value to your candidate.

Updated July 2026

Want the full breakdown? Read the blog post: Car Allowances in Australian Sales: What They're Actually Worth →

Salary & Allowance

$110,000
$18,000

Driving Profile

30,000 km
$2.00
9.5 L/100km
$55,000

Running Costs

$200/mth
$2,000
$1,500
$600
$1,200

What Your Candidate Sees

Gross Allowance$18,000
Tax on Allowance (32.0% effective, incl. Medicare)−$5,760
After-Tax Value$12,240
True Running Cost$21,650
Their Annual Gap (out of pocket)−$9,410

This is what your BDM pays out of their own pocket each year to be on the road. Every candidate evaluating your offer sees this number.

Build a Better Package

Toggle extras on and watch the gap shrink in real time.

Not compulsory. Car allowances are not OTE.

Candidate's Gap (before extras)$9,410
Candidate's Gap Now−$9,410

Your Cost Comparison

Allowance Path

Car Allowance$18,000
Super on Allowance$0
Extras You Cover$0
Total Employer Cost$18,000

Company Vehicle (FMCV)

Running Costs$13,400
Depreciation (15%)$8,250
FBT Payable$10,755
Total Employer Cost$32,405

FMCV Benefits

  • Company owns the asset
  • Control over branding (signage, wraps, presentation standards)
  • Consistent fleet image across the team
  • Zero out-of-pocket for employee = highest retention
  • Easier to manage servicing schedules and compliance
  • Can negotiate fleet discounts on purchase and servicing

FMCV Considerations

  • Vehicle is a depreciating liability on the balance sheet
  • FBT payable adds significant cost above running expenses
  • Admin overhead: insurance, rego, servicing, fuel cards, tolls
  • Disposal risk and residual value management
  • Less flexibility for the employee (vehicle choice, personal use policies)
  • RFBA appears on employee's income statement (affects their HECS/MLS)

Bottom line: The allowance path costs you $18,000/year. A fully maintained company vehicle costs approximately $32,405/year (including $10,755 in FBT). The allowance path saves you $14,405/year, but your candidate may be out of pocket.

What Good Looks Like

Min

E-Tag provided. Non-negotiable. Your BDM is on toll roads every day.

Good

E-Tag + fuel card. Removes the two biggest variable costs.

Great

E-Tag + fuel card + servicing. Or an allowance north of $25k that genuinely covers costs.

Best

A package that genuinely covers what the candidate needs. That could be a solid car allowance north of $25k with benefits layered on top, or a fully maintained company vehicle. Flexibility in how it's structured opens up room for attraction. The point is the candidate isn't subsidising the cost of doing their job.

The candidates you want have options. They're comparing your package against three others right now. If yours leaves them $10k out of pocket and someone else covers fuel and tolls, they're gone.

Running Cost Breakdown

ItemAnnual
Fuel$5,700
Tolls / E-Tag$2,400
Insurance$2,000
Servicing$1,500
Tyres$600
Registration$1,200
Depreciation (15%)$8,250
Total$21,650

Rates used (FY2026-27)

Last updated: 2026-06-30

ATO cents/km

91c

Super guarantee

12%

Medicare levy

2%

MLS tier 1 (single $105,001-$123,000)

1%

MLS tier 2 (single $123,001-$164,000)

1.25%

MLS tier 3 (single $164,001+)

1.5%

MLS tiers (family, reference)

$210,001 / $246,001 / $328,001

FBT rate

47%

FBT statutory fraction

20%

FBT gross-up (Type 1, employer FBT)

2.0802

FBT gross-up (Type 2, RFBA)

1.8868

Super on car allowance

Not compulsory

HELP repayment $0-$69,528

Nil

HELP repayment $69,529-$129,717

15% over $69,528

HELP repayment $129,718-$186,050

$9,028 + 17% over $129,717

HELP repayment $186,051+

10% of total income

All figures are estimates based on FY2026-27 Australian tax rates, FBT rates, and ATO guidelines. Individual circumstances vary. This calculator does not constitute financial or tax advice. Always consult a registered tax agent for advice specific to your situation.

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