Novated Lease Calculator Australia
Thinking about salary packaging a car? Pop in the price, your salary and the term, and we'll estimate the pre-tax lease cost, the FBT, the tax you'd save versus buying the car out of your take-home pay, and your real net cost per year.
- Pre-tax lease cost (per year)$0
- Income tax and Medicare saved$0
- FBT cost (per year)$0
- Net cost after tax (per year)$0
Enter a car price and salary to see your estimate.
Want the exact numbers for your salary, car and employer? We'll model it properly before you sign.
Get a novated lease review →General information only, current for the 2025-26 financial year. This estimate uses the statutory FBT method, ignores the GST you may also save on the purchase price, employer admin fees, residual value and your personal deductions, and is not personal tax advice. FBT, lease rates and the EV exemption have eligibility rules. Before you commit, talk to us.
A Few Things This Calculator Assumes
How does a novated lease save tax?
Your employer pays the lease and running costs from your salary before income tax is calculated, so you're taxed on a smaller amount. The higher your marginal rate, the bigger the saving. The catch is Fringe Benefits Tax, which the employee package usually covers with a post-tax contribution. We net all of that off to show your real cost.
What is the EV FBT exemption?
Eligible electric vehicles, and plug-in hybrids first held before 1 April 2025, that sit under the luxury car tax threshold for fuel-efficient vehicles can be exempt from FBT. No FBT means no post-tax contribution, so the whole package runs pre-tax and the saving is much larger. Eligibility is strict, so this is worth confirming for your specific car before you sign.
What is the statutory method and the 20% figure?
For petrol and diesel cars, FBT is most often worked out with the statutory method: 20% of the car's value is treated as the taxable benefit each year, regardless of how much you drive. We use that 20% rate here. The operating cost method can sometimes be lower for high-business-use cars, which is something we check case by case.
Is the residual or balloon payment included?
No. At the end of a novated lease there's a residual value (a final lump sum set by ATO guidelines) that you pay, refinance or settle when you sell the car. This calculator shows the annual cost during the lease only, so factor the residual in separately when you compare against an outright purchase.
Before You Sign The Lease, Run The Real Numbers
Book a call with a senior accountant who packages cars for a living. We'll model your salary, car and employer setup, check the FBT method and EV exemption, and tell you exactly what you'd save.
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