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Novated Lease Calculator

Calculate novated lease repayments, FBT liability, and total tax savings for Australian salary packaging. Compare novated lease vs buying outright.

Novated Lease Details
💡 Novated leasing lets you pay for a car with pre-tax salary, potentially saving thousands in income tax.
Vehicle price (incl. GST)
$
Annual salary (gross)
$
Lease term
Annual km driven
km
Residual value (% of price)
%
Novated Lease Analysis
Monthly Lease Contribution
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ItemValue

How Novated Leasing Works in Australia

A novated lease is a three-way agreement between you, your employer, and a finance company. Your employer makes lease payments from your pre-tax salary, reducing your taxable income. Running costs (fuel, insurance, servicing) can also be salary packaged.

Fringe Benefits Tax (FBT)

FBT applies to novated leases. The ATO uses the Statutory Formula Method: taxable value = vehicle cost × 20% × days held/365. From 1 April 2025, eligible electric vehicles under the LCT threshold are exempt from FBT.