What costs can be packaged inside an EV novated lease?

Vehicle finance lease payments, electricity charging/fuel, comprehensive insurance, servicing, registration, and replacement tires.

Can an employee save on GST when buying a car through a novated lease?

Yes, you save up to $6,334 in upfront GST on the vehicle purchase price, as the leasing company claims the GST input credit.

AustraliaNovated Lease & EV FBT Exemption (Salary Sacrifice)Finance & Salary

Australia Novated Car Lease & Electric Vehicle FBT Exemption Calculator

Calculate annual income tax and GST savings through salary packaging a novated car lease in Australia, featuring the Electric Car Discount (100% Fringe Benefits Tax FBT exemption for eligible zero-emission electric vehicles under the Luxury Car Tax threshold $91,387).

Auto & Vehicles Salaries & Monthly Wages Taxes & Duties

Calculator Inputs

Live Real-Time

Vehicle Driveaway Price (AUD $ - Under $91,387 for EV FBT Exemption)

AUD $

Quick select:

Annual Running Costs (Insurance, Charging/Fuel, Tires, Rego) (AUD $)

AUD $

Quick select:

Employee Marginal Tax Bracket + Medicare Levy (%)39 %

16 %47 %

Calculated ResultNovated Lease & EV FBT Exemption (Salary Sacrifice)

Net Monthly Paycheck Reduction (Drive Brand New EV All-Inclusive)

823.5AUD $/mo

Annual Income Tax Saved via EV FBT Salary Packaging

6,318 AUD $/mo

Upfront GST Saved on Car Purchase (Capped at $6,334)

5,909.09 AUD $/mo

Detailed Calculation Breakdown

Total Pre-Tax Packaged

16,200 AUD $/mo

Income Tax Saved / Yr

6,318 AUD $/mo

GST Purchase Shield

5,909.09 AUD $/mo

Net Monthly Cost

823.5 AUD $/mo

Calculation Methodology

Pre-Tax Salary Deduction = Annual Lease & Running Costs. Annual Income Tax Saved = Pre-Tax Deduction * Marginal Tax Rate%. GST Savings on Car Price = min(Vehicle Price * (1/11), $6,334).

Important Legal & Educational Disclaimer

Electric vehicles and plug-in hybrids under the LCT threshold ($91,387) are 100% exempt from FBT, allowing all finance payments and running costs (charging, insurance, maintenance) to be paid completely from pre-tax salary.

This calculator is designed for educational and informational purposes only based on public statutory frameworks. The outputs do not constitute binding financial, tax, or legal advice. We assume no liability for decisions made based on these estimations. Always verify with the relevant official authorities or a certified professional advisor.

Frequently Asked Questions

Under the Electric Car Discount, zero-emission EVs below the Luxury Car Tax threshold ($91,387) are 100% exempt from FBT, allowing all payments to be made pre-tax.

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Australia

Australia Novated Car Lease & Electric Vehicle FBT Exemption Calculator

Calculator Inputs

Detailed Calculation Breakdown

Calculation Methodology

Important Legal & Educational Disclaimer

Frequently Asked Questions

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