Novated lease calculator, without giving your details

See what an electric, plug-in hybrid or petrol car on a novated lease takes out of your pay each fortnight, under the current electric car FBT exemption or the changes proposed for leases signed from 1 April 2027, and how that compares with a car loan or cash. 2026–27 tax rates, ATO residual values, the $91,661 luxury car tax threshold. No email, no phone number, no quote request.

You and the car

Salary before tax, per year

Taxable income before the lease. Resident, full year.

Type of car

Electric Plug-in hybrid Petrol, diesel or hybrid

“Electric” means battery electric or hydrogen fuel cell only.

Car price (FBT base value)

Price including GST, any luxury car tax, dealer delivery and accessories. Leave out registration, CTP and stamp duty.

Stamp duty, if financed

Your state revenue office sets the rate. Enter 0 if you pay it yourself or none is due.

Bought from a GST-registered seller (any dealer, new or used) Used electric car: first used on or after 1 July 2022, and luxury car tax never paid on it

The lease

Lease signed on

The date you and your employer are bound. It decides which FBT rule applies for the whole lease.

Term

Residual, % of amount financed

ATO minimum for 5 years: 28.13%.

Lease interest rate, % a year

Example value. Use the rate in your quote.

Rules for leases signed from 1 April 2027

Proposed changes Current law (if the bill fails)

Running costs per year

Example values: replace them with your own or your quote’s budget. GST-inclusive.

Charging or fuel

Servicing and tyres

Comprehensive insurance

Registration and CTP

No GST on these.

Management fee in the quote

Car loan rate, for comparison

Your take-home pay goes down by

$356 a fortnight

$9,256 a year, for the car and all the running costs above, then a residual of $14,065 at the end.

FBT-exempt electric car (current law)

The car is exempt from FBT for the whole lease, so everything is paid from pre-tax salary and no after-tax contribution is needed. The exemption still shows up as a reportable fringe benefit, worked out at 20% of the car’s base value.

Yearly breakdown of the novated lease
Lease payments (GST excluded)	$9,803
Running costs (GST credits taken off)	$3,809
Package cost per year	$13,613
From pre-tax pay	$13,613
From after-tax pay (employee contribution)	$0
Income tax and Medicare levy saved	−$4,356
Net cost to you per year	$9,256

Per fortnight: $524 before tax, $0 after tax.

Over 5 years, ending with the car paid off

Total cost over the term, three ways to pay
Novated lease, residual included	$60,347
Car loan at 8%	$87,412
Paying cash	$75,500

Reportable fringe benefits:: $20,754 a year on your income statement. It is not taxed, but it counts in income tests (HELP repayments, Medicare levy surcharge, family payments, child support).
FBT:: nil: no FBT is payable on this car, so no after-tax contribution is needed.
GST the financier saves on the car:: $5,000 (capped at 1/11 of the car limit, $69,883).

Nothing you type leaves this page. Results labelled “proposed” use rules that are proposed, not yet law.

General information only. This is an estimate built from the ATO’s published rates and formulas and the numbers you enter. It is not financial advice, tax advice or credit assistance, and it does not recommend any lease, loan, lessor or lender. Your employer’s and your financier’s figures are the ones that count. Read the disclaimer.

What the fortnightly cost looks like

Take-home pay reduction per fortnight, 5-year lease at 8% with the ATO minimum residual (28.13%), and the example running costs used in the calculator ($4,100 a year). These are example inputs, not market rates: change them in the calculator.

Take-home pay reduction per fortnight by car and salary
Car and lease date	$80,000 salary	$120,000 salary	$180,000 salary
$55,000 EV, signed November 2026	$356	$356	$319
$85,000 EV, signed November 2026	$500	$503	$451
$85,000 EV, signed May 2027 (proposed rules)	$690	$690	$670

The last row shows the proposed 25% discount on an electric car above $75,000: the same car costs more per fortnight once 15% of its value has to be paid from after-tax pay.

How the numbers are worked out

Buying the car. The financier buys it, claims the GST credit (1/11 of the price, capped at $6,353 for 2026–27, 1/11 of the ATO car limit) and finances the rest plus any stamp duty. Payments are monthly in advance, with the residual left as a balloon. That is the model used here: compare it with the structure of your quote.
The package. Your employer pays the lease and the running costs out of your pre-tax salary and claims the GST credits on them (registration and CTP carry no GST). The calculator assumes the employer adds no margin; any fee in your quote goes in “Management fee”.
FBT. The taxable value uses the ATO statutory formula: base value × statutory fraction (20%, or 15% under the proposed 25% discount, or nil when exempt). You pay exactly that amount from after-tax pay (the “employee contribution method”), which brings FBT to nil. Your employer owes GST of 1/11 on that contribution, which is recovered from the pre-tax deduction.
Tax. 2026–27 resident rates, the low income tax offset and the Medicare levy (2%, with the low-income reduction for a single person using the latest published thresholds, 2025–26), applied to every year of the lease.
Loan and cash. You pay the full GST-inclusive price and the running costs from after-tax pay, with no GST credit. The loan is repaid in full over the same term.

What is left out: whole FBT years only (no part-year apportionment), the one-third base value reduction after four FBT years, the Medicare levy surcharge, salary-sacrificed super, and what your cash could earn elsewhere. Check with your quote whether the residual is shown with or without GST: the calculator treats it as a single amount you pay at the end.

Frequently asked questions

Is a novated lease on an electric car still FBT-free?

Yes, under current law, for a battery electric or hydrogen car first held and used from 1 July 2022 whose value is under the fuel-efficient luxury car tax threshold ($91,661 in 2026–27). The Government has proposed changes for leases signed from 1 April 2027: a full discount only up to $75,000, a 25% discount above that. They are exposure draft legislation, not law. What is proposed, band by band.

I sign my lease before 1 April 2027. Will the changes hit me later?

The ATO says existing leases won’t be affected, and the exposure draft keeps the current exemption until the commitment ends. But a new commitment ends it early: refinancing, changing the residual or the term, adding accessories that raise the payments, or moving to a new employer (even within the same group). What counts as a new commitment.

Why does this calculator not ask for my name, email or phone?

Because it does not need them. Every figure is calculated in your browser from what you type, and nothing is sent or stored. There is no quote to request and no one will call you.

What is the “reportable fringe benefit” on my income statement?

Even when an electric car is FBT-exempt, your employer reports its grossed-up value (20% of the base value × 1.8868). It is not added to your taxable income and does not change your Medicare levy, but it counts in income tests such as HELP repayments, the Medicare levy surcharge, family assistance and child support.

What happens if I change jobs during the lease?

The novation ends and the lease reverts to you, so you make the payments from after-tax income. If your new employer agrees to take the same lease over, that is a new commitment, and the FBT rules in force on that date apply. Under the proposed rules, a lease picked up again from 1 April 2027 would no longer have the old exemption.

Does the result include the residual (balloon)?

The fortnightly figure does not: it is what leaves your pay during the lease. The residual is shown separately and added to the total over the term, because in all three options (novated, loan, cash) you end up owning the car.

Official sources

Electric cars exemption — ATO, page updated 1 April 2026.
Electric car discount – more sustainable fringe benefits tax treatment of electric cars (new legislation, "This measure is not yet law") — ATO, page updated 14 May 2026.
Sustainable fringe benefits tax treatment of electric cars – consultation, exposure draft "Treasury Laws Amendment Bill 2026: Phased changes to the FBT electric car exemption" and explanatory materials — Treasury, consultation closed 28 September 2026.
FBT on plug-in hybrid electric vehicles — ATO, page updated 14 March 2025.
Taxable value of a car fringe benefit (statutory formula, base value) — ATO, page updated 6 March 2025.
Fringe benefits tax – rates and thresholds — ATO, page updated 20 May 2026.
Luxury car tax rate and thresholds — ATO, page updated 1 June 2026.
Car thresholds from 1 July (car limit $69,883, GST credit cap $6,353) — ATO, published 9 June 2026.
TD 93/142 – minimum residual values for leased assets (table at para 3A) — ATO legal database, last amended 14 July 2021.
GSTR 2001/3 – GST and fringe benefits (GST on employee contributions) — ATO legal database, read on 1 October 2026.
Tax rates – Australian residents — ATO, page updated 13 August 2026.
Low income tax offset — ATO, page updated 8 June 2026.
Medicare levy reduction for low-income earners — ATO, page updated 30 June 2026.

All sources checked on 1 October 2026.

Page updated 1 October 2026.