How to Use the Novated Lease Calculator
- Enter your annual gross salary — this determines your marginal tax rate and income tax savings
- Enter the vehicle price — including GST (the calculator separates the GST saving for you)
- Choose a lease term — typically 3–5 years
- Estimate your running costs — fuel, insurance, rego, servicing, and tyres per year
- Set the residual — usually 25%–40% of the vehicle's ex-GST price
- Flag if it's an EV — electric vehicles are FBT-exempt, significantly boosting savings
Understanding Your Results
Income Tax Saving
Because lease payments and running costs come from your pre-tax salary, your taxable income drops — and so does your tax bill. The higher your marginal tax rate, the bigger the saving.
GST Saving
GST is not charged on salary-sacrificed amounts. This saves you ~10% on the vehicle purchase price and all bundled running costs.
FBT Cost
Fringe Benefits Tax is calculated at 20% of the vehicle's base value under the statutory method (most common). The FBT rate is 47%. For electric vehicles under the LCT fuel-efficient threshold, FBT is $0.
Net Annual Benefit
Your total annual saving from income tax and GST, minus the FBT cost. This is the real bottom-line impact of choosing a novated lease over paying for the vehicle from after-tax income.
Novated Lease Calculator FAQ
How much can I save with a novated lease?▼
Savings depend on your salary, marginal tax rate, vehicle price, and annual kilometres. Employees earning $80,000–$120,000 typically save $3,000–$8,000 per year through income tax and GST savings combined. Electric vehicles save even more due to the FBT exemption.
What is the FBT on a novated lease?▼
Under the statutory formula method, FBT is calculated at 20% of the vehicle's base value multiplied by the FBT rate (currently 47%). For a $50,000 car, FBT is roughly $4,700 per year. Electric vehicles under the LCT threshold are FBT-exempt.
Can I include running costs in a novated lease?▼
Yes. A fully maintained novated lease bundles fuel, insurance, registration, servicing, tyres, and roadside assistance into one regular salary deduction. All running costs benefit from the same pre-tax treatment.
Are these results guaranteed?▼
No. This calculator provides indicative estimates based on 2025-26 tax rates and the statutory FBT method. Actual outcomes depend on your employer, provider fees, and individual circumstances. Consult a tax professional for personalised advice.