Salary Sacrifice

This article was sponsored by Google Trends.

Searches for novated leases have peaked in Australia, with electric vehicles making a strong showing in related searches. The Google Trends data suggests people are looking for information about a cost effective means of paying for cars with salary sacrifice, as well as trying to gain a better understanding of how salary packaging works.

What is salary packaging?

Salary packaging, also known as salary sacrifice, involves agreeing to receive some of your pay as benefits rather than as taxable salary. Depending on the employer and the arrangement, those benefits might include superannuation contributions, a car, electronic equipment, mortgage or bill payments, or other eligible expenses.

In the Google Trends data, related searches such as “What is salary packaging” rose by 40 per cent, while “what is salary packaging Australia” increased by 60 per cent in the supplied related-query results. As outlined above, salary sacrifice arrangements can be quite complex, which might explain why the search trends suggest people are looking for basic explanations of the term. We can infer that this is a likely prompt for Google searches, but the trend data cannot tell us what provoked the questions.

Novated leasing reaches a peak

Over the past five years, “novated lease” recorded an average relative search- interest score of 45, higher than “salary sacrifice” at 33, “salary packaging” at 22 and “employee benefits” at six. The highest search interest was recorded in March 2026, when “novated lease” reached a score of 100.

These figures are relative index scores, normalised from 0 to 100 within each selected period. They are not search volumes, and scores from different comparisons should not be treated as directly interchangeable.

A novated lease is a salary package for a vehicle. It’s a three-way agreement between an employer, an employee and a financier. The employer takes pre-tax payments from the employee’s salary and pays them into a financier’s lease on a vehicle. Leases can be for just using the vehicle, but they can also include running costs such as fuel and servicing. The employee has full use of the vehicle but does not own it outright during the lease. 

There can be tax advantages in this arrangement, but the full value depends on the employee’s circumstances, the vehicle, the employer’s situation and the costs involved. Total salary, the organisation’s charity status, lease payments, fees, running costs and end-of-lease obligations can all influence the total value of the arrangement. The Australian Government’s Moneysmart guidance recommends checking whether salary packaging is right for you and seeking professional tax advice if needed.

Searches related to salary sacrifice also show a strong interest in electric cars. “Electric car salary sacrifice” increased by 2,550 per cent in the related-query results, while “salary sacrifice electric car” rose by 1,550 per cent and “Tesla salary sacrifice” by 750 per cent. Queries including “EV salary sacrifice” and “salary sacrifice EV” were marked as breakout searches.

The peak in March was in response to the escalating conflict in Iran, which resulted in a huge spike in petrol prices in Australia. Google Trends data reported by ABC News at the time showed searches for “electric vehicles” on 23 March were 278 per cent higher than on 27 February.

The Australian Government’s tax arrangements that make eligible electric vehicles more affordable may also be a source of interest. In May 2026, the Government announced changes to the existing fringe benefits tax (FBT) exemption, which would remain in place until the end of March 2027.

What the Salary Survey tells us

The 2026 Pro Bono Australia Salary Survey provides a broad view of salary packages in the not-for-profit sector. It reports salary and total remuneration data across a range of roles, while also asking about strategies such as work flexibility, higher remuneration and additional leave entitlements.

Workers evaluate jobs in a much broader context than just base salary. Employers seeking to attract and retain valuable staff would do well to ensure they are clear about the arrangements they can offer.

What the searches can and can’t tell us

Search data tells us Australians are searching for information about salary sacrifice, salary packaging and novated leases, with electric vehicles prominent in the related queries. As the cost of living continues to rise and Australian workers look for more ways to manage their budgets, salary packaging options could become an even more attractive offering for employers and employees alike. The complexity of salary packaging and the range of options available means that one of the key factors could be providing information that is detailed, customisable and easy to access for people trying to decide whether salary packaging makes sense for them. Employers who provide clear, accessible information about salary packaging options may be better placed to attract and retain staff.