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Novated Lease Check

Novated lease calculator

Estimate what a novated lease costs from your take-home pay and compare it with buying the same car outright. It uses 2026-27 resident tax rates, the 2% Medicare levy, the FBT statutory formula (20%), the employee contribution method and the electric car FBT exemption. There is no sign-up and you enter no personal details; everything is calculated in your browser.

General information only, not financial or tax advice. Some inputs are marked not verified because we have not yet verified them against an official source.

You Before salary packaging. Australian resident rates for 2026-27.
The car The part of the drive-away price that is registration and stamp duty. It is excluded from the FBT base value. The EV exemption depends on this, not on the price. Check with the dealer if unsure.
The lease Defaults to 1 April, the start of the FBT year. Any other date pro-rates FBT by days available ÷ days in the FBT year (365, or 366 in a leap year). ATO Defaults to the ATO minimum residual value for the term. Change it to use your lessor's figure. Example only, not a quoted rate. Use the rate from your quote. Charging or fuel, registration, insurance, tyres, servicing.
Assumptions Off by default. Applies 1/11 to the car price excluding registration and stamp duty, and to GST-bearing running costs only. The car credit is capped at $6,353, 1/11 of the 2026-27 car limit of $69,883 (ATO). The part of your running costs that includes GST (for example charging, tyres, servicing). Only used when the GST assumption is ticked.

Sources: ATO tax rates · ATO FBT rates · ATO EV exemption · ATO luxury car tax · Announced changes · Every step: methodology

How it works

  1. Lease payments plus running costs are deducted from your salary. How a novated lease works.
  2. For cars that are not FBT exempt, part is paid from post-tax pay (the employee contribution method) to reduce the FBT taxable value to nil; the rest comes from pre-tax pay. FBT on a novated lease. ATO source
  3. Eligible electric cars are FBT exempt, so the whole package can come from pre-tax pay (it is still a reportable fringe benefit). EV FBT exemption. ATO source
  4. At the end you pay the residual, which defaults to the ATO minimum residual value for the term. Residual values.
  5. Your tax saving is the difference in income tax plus Medicare levy before and after packaging. Every step is set out on the methodology page.

For an electric car, use the EV novated lease calculator. For a second-hand car, see novated lease on a used car. If you are still deciding, read is a novated lease worth it, and if you already have a quote, check it with the quote checker.

Frequently asked questions

Do I need to enter personal details?

No. There is no sign-up, no form submission and no email capture. The calculator runs in your browser and nothing you type is sent anywhere.

Which tax rates does the calculator use?

Australian resident income tax rates for 2026-27 plus the 2% Medicare levy, the 47% FBT rate for FBT years to 31 March 2027 and the 20% car statutory formula, all from ATO pages checked 17 Oct 2026.

Does it include the EV FBT exemption?

Yes. Battery electric cars first held and used on or after 1 July 2022, where luxury car tax was never payable, are treated as FBT exempt. Plug-in hybrids are excluded from 1 April 2025 unless there was a pre-existing commitment. Source: ATO.