Novated Lease Salary Packaging Calculator
Calculate tax savings from salary packaging a car through novated lease. Compare EV and ICE vehicles, see the benefits of the FBT exemption.
How Novated Lease Salary Packaging Works
A novated lease allows you to salary package a car, paying for the vehicle and all running costs (fuel, insurance, servicing, registration) from your pre-tax salary. This reduces your taxable income and can result in significant tax savings.
Key Benefits
- Pay with pre-tax dollars
- Save on GST (10%)
- EV FBT exemption available
- Bundle all car costs
Frequently Asked Questions
What is a novated lease?
A novated lease is a three-way agreement between you, your employer, and a finance company that allows you to pay for your car and running costs (fuel, insurance, servicing) from your pre-tax salary, reducing your taxable income.
What is the EV FBT exemption?
From 1 July 2022, eligible electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) are exempt from Fringe Benefits Tax (FBT) if the car's value is below the Luxury Car Tax threshold ($91,387 for 2024-25). This makes novated leasing an EV significantly cheaper.
How much can I save with a novated lease?
Savings vary based on your income, the car's value, and whether it's an EV (FBT-exempt). High-income earners can save $10,000-$15,000+ per year on an EV novated lease compared to buying with cash or a car loan.
Can I salary package any car?
Most new and used cars can be novated leased, but to get the FBT exemption, the vehicle must be an eligible EV or PHEV below the luxury car tax threshold. Your employer must also offer novated leasing as a benefit.
Ready to Calculate Your Savings?
Use our comprehensive novated lease calculator to compare costs and see exactly how much you can save with salary packaging.
Open Novated Lease Calculator