Annual Tax Saving
A$NaN
Annual Lease Payment (pre-tax)
A$NaN
Net Annual Cost (after-tax saving)
A$NaN
Total Saving vs Buying After-Tax
A$NaN
Novated Lease Calculator — Gross Annual Salary A$25,000
With gross annual salary of A$25,000, the annual tax saving is A$2,744.
Fuel, registration, insurance, servicing
Annual Lease Payment (pre-tax)
AUD14,440
Annual Tax Saving
AUD4,693
Net Annual Cost (after-tax saving)
AUD9,747
Total Saving vs Buying After-Tax
AUD14,079
Simplified estimate only. Fringe Benefits Tax (FBT) may apply to the personal use portion of the vehicle unless an EV exempt from FBT. Consult your salary packaging provider and employer for an accurate quote. EVs under the Luxury Car Tax threshold are currently FBT-exempt.
What is the Novated Lease Calculator?
A novated lease is a salary packaging arrangement where your employer deducts lease payments from your pre-tax salary, reducing your taxable income and PAYG tax. Running costs (fuel, insurance, servicing, rego) can also be packaged pre-tax. EVs (electric vehicles) under the Luxury Car Tax threshold are currently FBT-exempt, making them particularly tax-effective.
Formula
Annual Tax Saving = Annual Lease Payment × Marginal Rate. Net Cost = Lease Payment − Tax Saving.- L
- = Annual pre-tax lease + running costs
- r_m
- = Marginal income tax rate
How to use the Novated Lease Calculator
- 1
Step 1
Enter your gross salary.
- 2
Step 2
Enter the vehicle value.
- 3
Step 3
Set the lease term.
- 4
Step 4
Enter estimated annual running costs.
- 5
Step 5
View annual tax saving and net cost.
Reviewed by
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Frequently asked questions
Are electric vehicles FBT exempt on novated lease in Australia?
Yes. Zero-emission vehicles (electric, hydrogen, plug-in hybrid) under the Luxury Car Tax threshold ($89,332 for fuel-efficient vehicles in 2025-26) are exempt from FBT on novated leases, making them highly tax-effective to package.
Sources
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