Novated Lease Calculator Australia โ FY 2025-26
Calculate your novated lease costs, tax savings, and FBT liability. Compare EV vs petrol vehicles and see whether a novated lease beats buying outright. Includes the EV FBT exemption for battery electric and hydrogen vehicles. FBT year ending 31 March 2026.
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How to Use This Calculator
Lease Estimate tab
Enter the car's drive-away price, lease term (1-5 years), fuel type, your annual salary, and estimated annual running costs (fuel/charging, rego, insurance, tyres, servicing). The calculator shows your fortnightly pre-tax cost, FBT amount ($0 for eligible EVs), income tax saving, net fortnightly cost, and total cost compared to buying outright.
EV vs Petrol tab
Enter the EV drive-away price and an equivalent petrol car price to see the annual and 5-year cost difference. The EV FBT exemption is the primary driver of savings, plus lower running costs for electric vehicles.
Should I Novate? tab
Compare a novated lease against buying with a car loan. Enter the car value, your salary, fuel type, and your car loan rate. The calculator shows the break-even salary where a novated lease becomes cheaper than a car loan.
Share your result
All inputs are encoded in the URL. Click Share to send your exact calculation to a colleague or financial adviser.
The Formula
Total Lease = (Car Value − Residual) + Finance Charge + Running Costs
Fortnightly Pre-Tax = Total Lease ÷ (Term × 26 fortnights)
FBT (Statutory Formula Method):
Taxable Value = Car Cost × 20% (statutory fraction)
FBT Payable = Taxable Value × 47%
For eligible EVs (BEV/hydrogen): FBT = $0
Tax Saving:
Saving = Tax(Salary) − Tax(Salary − Annual Pre-Tax Payments)
Net Cost = Pre-Tax Payment − Tax Saving + FBT
ATO Minimum Residuals:
1yr: 65.63% | 2yr: 56.25% | 3yr: 46.88% | 4yr: 37.50% | 5yr: 28.13%
Worked Example
$55,000 BEV on a 5-year novated lease, salary $100,000
Step 1: Lease cost calculation
Step 2: FBT check
Step 3: Tax saving
Step 4: vs petrol car
Verdict: The BEV novated lease costs ~$630/fortnight net after tax savings, compared to ~$750/fortnight for an equivalent petrol car. The $0 FBT exemption plus lower running costs save approximately $3,120 per year.
Novated Lease Key Rates (FBT Year Ending 31 Mar 2026)
FBT and lease rates
| Parameter | Value |
|---|---|
| FBT rate | 47% |
| Statutory fraction (all distances) | 20% |
| EV FBT exemption | BEV + hydrogen only |
| PHEV FBT exemption | NOT exempt from 1 Apr 2025 |
| LCT threshold (fuel-efficient) | $91,387 |
| Type 1 gross-up rate | 2.0802 |
ATO minimum residual values
| Lease Term | Minimum Residual |
|---|---|
| 1 year | 65.63% |
| 2 years | 56.25% |
| 3 years | 46.88% |
| 4 years | 37.50% |
| 5 years | 28.13% |
Residual = percentage of vehicle's original cost price. This is the balloon payment at end of lease.
Income tax brackets (Stage 3, FY 2025-26)
| Taxable Income | Tax Rate |
|---|---|
| $0 – $18,200 | 0% |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001+ | 45% |
Plus 2% Medicare Levy on total taxable income.