Australian Novated Lease Calculator

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 shows the exact difference, rather than a rough marginal rate estimate.

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

They attract FBT, and most providers offset it by having you pay part of the costs from post-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 a pre-FBT 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 set 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 (it is owed at the end and is 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 shown as one line of the lease column, not as 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. A quoted residual below that minimum is flagged. GST is normally added when you pay the residual out, and 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 and that saving is already inside the lease payments on your quote. Adding it again would count it twice. GST on running costs is handled by entering what the running costs would be if you paid them yourself, including GST.

It can. Packaging lowers taxable income, but reportable fringe benefits are added back for HECS repayment income and many benefit tests. For FBT-exempt EVs the benefit is still reportable. The calculator includes the HECS effect via its toggle; check benefit impacts with the provider.