Australian Novated Lease Calculator

Your lease repayments and running costs come out of your salary before tax, so your taxable income drops. The calculator runs your pay through the ATO scales with and without the package and compares the two, rather than guessing from your marginal rate. For a petrol or diesel car without a car value, it is the saving before FBT.

Eligible electric vehicles (EVs) under the luxury car tax threshold are exempt from fringe benefits tax (FBT). That means the entire package can be salary sacrificed pre-tax. This exemption is what makes EV novated leases unusually attractive, and it is the scenario this calculator models best.

Petrol and diesel cars attract FBT. Most providers offset it by having you pay part of the costs from your after-tax salary (the employee contribution method). Enter the car value and the calculator models that split: 20% of the car value is paid post-tax each year and only the rest is salary sacrificed. Without a car value the figure is the saving before FBT, a best case, so get a full quote either way.

No. The tax saving is real, but lease quotes bundle interest, fees and a residual payment at the end, which can outweigh it, especially on used or cheap cars. Switch on the comparison to see the total cost of the lease, residual included, against a car loan and paying cash for the same car over the same term.

Each option ends with you owning the same car after the lease term. The lease total is the real cost to your take-home pay over the term, from the same two pay calculations as the tax saving, plus the residual and the GST added when you pay it out. The car loan total is the deposit, repayments and fees from the car loan calculator, plus any loan balloon you enter (owed at the end and separate from the lease residual), plus running costs paid from take-home pay. The cash total is the drive-away price plus the same running costs. Tax saved is one line of the lease column, not the answer.

The residual on your quote, if you enter it. Otherwise it uses the ATO minimum for the term (TD 93/142, for a car with an eight year effective life): 65.63% of the amount financed for one year, 56.25% for two, 46.88% for three, 37.5% for four and 28.13% for five. If your quoted residual is below that minimum, we flag it. GST is normally added when you pay the residual out. You can switch that off if your quote already includes it.

Your employer claims the GST on the car, so the lease finances the price before GST. That saving is already inside the lease payments on your quote, and adding it again would count it twice. For GST on running costs, enter what the running costs would be if you paid them yourself, including GST.

It can. Packaging lowers your taxable income, but reportable fringe benefits are added back for HECS/HELP repayment income and many benefit tests. For FBT-exempt EVs the benefit is still reportable. The calculator includes the HECS/HELP effect through its toggle. Check the impact on benefits with the provider.