Novated lease calculator 2026-27
This novated lease calculator compares your take-home pay with and without a lease. On a $100,000 salary and a $60,000 electric car over 3 years, you take home $2,539.78 a fortnight with the lease and $2,980.00 without it.
The link carries the numbers you entered, so anyone who opens it sees the same result.
Take-home per pay with the lease
$2,539.78
Exempt electric car
- You keep 66.1%
- Tax and levy 17.1%
- The car 16.8%
Breakdown
| Amount financed, after the GST credit | $54,545.45 |
|---|---|
| Residual at 46.88%, plus GST | $28,128 |
| Lease payments a year | $12,941.16 |
| Running costs a year, net of GST credits | $3,890.91 |
| From pre-tax pay in year one | $16,832.07 |
| FBT statutory amount (0% of $60,000) | $0 |
| From after-tax pay, to take FBT to nil | $0 |
| Tax, levy and HELP saved in year one | $5,386.26 |
| Reportable fringe benefit on your income statement | $22,641.60 |
| Income for HELP and surcharge tests | $105,809.53 |
| Surcharge with no hospital cover, with the lease | $1,058.10 |
| Surcharge with no hospital cover, without it | $0 |
| Employer super lost a year | $2,019.85 |
| Lease total minus buying outright | -$10,134.57 |
Start before or after 1 April 2027
Proposed, not yet law. Existing leases keep the rate they started with.
| Lease starts | 31 March 2027 | 1 April 2027 |
|---|---|---|
| FBT statutory rate | 0.00% | 0.00% |
| After-tax contribution a year | $0 | $0 |
| Take-home a year | $66,034 | $66,034 |
| Total cost over the term | $62,465 | $62,465 |
The start date makes no difference to this car.
- Take-home per pay without it
- $2,980
- Tax saved in year one
- $5,386
- FBT after your contribution
- $0
- Total cost over the term, with residual
- $62,465
- Buying outright, with running costs
- $72,600
Electric cars and FBT
A battery electric car can be exempt from FBT if its value is under the fuel-efficient luxury car tax threshold, which is $91,661 for 2026-27. So the whole lease can come out of pre-tax pay. The ATO electric cars exemption page (opens in a new tab) sets out the conditions.
- Plug-in hybridsThe exemption ended on 1 April 2025. A binding commitment from before that date can keep it.
- Petrol and dieselFBT applies at the 20% statutory rate. An after-tax contribution can take it to nil.
Proposed EV changes from 1 April 2027
These are proposed, not yet law. A bill is before Parliament, and the toggle shows the result either way. The Treasurer's release on EV changes (opens in a new tab) has the plan.
To 31 March 2027
Current exemption
Law now
The exemption continues in full.
1 April 2027
Two price bands
Proposed
Cars up to $75,000 stay exempt. Above that, up to the threshold, FBT gets a 25% discount.
1 April 2029
Permanent discount
Proposed
A 25% discount for eligible electric cars.
A lease keeps the rate from when it began. On an $85,000 car, starting on 31 March 2027 rather than 1 April 2027 leaves $4,080 more take-home in year one.
A reportable benefit counts in income tests
An exempt car still creates a reportable fringe benefit. You don't pay tax on it, but it counts in these tests:
- HELP repaymentsIt lifts your repayment income. The HECS repayment calculator shows the bands.
- Medicare levy surchargeIt lifts income for the surcharge. See the Medicare levy surcharge calculator.
- Super and family testsDivision 293, the co-contribution and family payments all count it.
On the default example, a $22,642 benefit takes income for the surcharge to $105,810. Without private hospital cover, that's a $1,058 surcharge that wouldn't apply on the $100,000 salary alone.
What residual applies at the end of a lease?
The ATO's minimum residuals run from 65.63% for 1 year to 28.13% for 5 years. This calculator uses those. You pay the residual, plus GST, to keep the car.
Does a novated lease reduce my super?
It can. Amounts sacrificed to benefits other than super aren't qualifying earnings. Some employers top this up, so ask yours.
Is a novated lease always cheaper than buying?
No. It depends on your tax rate, the interest rate and the car. A lower salary saves less tax, and fees in a real quote add to the cost.
- Pay calculator: your pay with no lease.
- Salary sacrifice calculator: sacrifice to super instead.
Estimates only, based on published rates for 2026-27. General information, not tax or financial advice.
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