EV Novated Lease Calculator
What an electric car on a novated lease costs your fortnightly pay, with charging worked out from how far you drive, the value of the FBT exemption, and the reportable fringe benefit it adds to your income statement.
Your electric car lease
Cost to your take-home pay each fortnight
$427.50
$11,115.03 a year for a car that costs $17,980.68 a year to run and lease · you save $6,865.65 a year
- Lease payment a month
- $1,188.39
- Charging a year
- $720.00 (4.8c a km)
- Other running costs a year
- $3,000.00
- Taken from pre-tax salary a year
- $16,346.07
- Saving vs paying the same costs after tax
- $6,865.65
- Saving over the 3-year lease
- $20,596.95
- What the FBT exemption is worth a year
- $4,582.11
- Reportable fringe benefits amount
- $22,641.00
- Residual payment after 3 years (plus GST)
- $25,570.91
Australian resident, 2026–27 tax rates, payments monthly in advance with the ATO minimum residual. Your employer must offer novated leasing; provider fees aren’t included.
Rates checked 12 October 2026 against the ATO · How we calculate · Calculated in your browser; nothing you enter is sent anywhere.
What the car costs your pay each fortnight
The same car and running costs three ways. The gap between the first two bars is the value of the electric car FBT exemption.
- Novated lease, FBT-exempt electric car$427.50 a fortnight
- Novated lease without the EV exemption$603.74 a fortnight
- Same costs paid from take-home pay$691.56 a fortnight
Where your yearly car budget goes
Lease payments, charging and other running costs, all packaged from pre-tax salary.
- Lease payments $14,261 a year
- Charging $720 a year
- Rego, insurance, servicing and tyres $3,000 a year
How the savings build over the lease
Running total of what the car costs your take-home pay. Hover along the lines to read the saving at any month.
- Paying from take-home pay
- Novated lease
Show as a table
| After | From take-home pay | Novated lease | Saving |
|---|---|---|---|
| Year 1 | $17,980.68 | $11,115.03 | $6,865.65 |
| Year 2 | $35,961.36 | $22,230.06 | $13,731.30 |
| Year 3 | $53,942.04 | $33,345.09 | $20,596.95 |
Why electric cars suit a novated lease
A novated lease is a three-way agreement between you, your employer and a leasing company. Your employer pays the lease and running costs from your salary. For most cars, fringe benefits tax means part of that has to come from after-tax pay. An eligible electric car is exempt from FBT, so the whole cost comes from pre-tax salary.
On the default example, packaging $16,346.07 a year from pre-tax salary reduces income tax and Medicare enough that the car costs your take-home pay $11,115.03, not $17,980.68. Without the exemption, the same car would cost $15,697.14 a year through a lease, so the exemption is worth $4,582.11 a year.
Sources: Electric cars exemption, ATO, last updated 1 April 2026; Luxury car tax rate and thresholds, ATO, last updated 1 June 2026; TD 93/142 minimum residual values. FBT figures are for the FBT year ending 31 March 2027.
Before you sign
- The residual. At the end of the lease you pay the residual ($25,570.91 plus GST on the default example), refinance it, or sell the car.
- Provider fees and margins. Admin fees, insurance and maintenance budgets vary between providers; ask for the interest rate and every fee in writing.
- Leaving your job. The lease stays with you. Your new employer may take it on, or you pay it from after-tax income.
- Your income tests. The reportable fringe benefits amount can raise HECS-HELP repayments and the Medicare levy surcharge, and reduce some government payments.
Frequently asked questions
How much does an electric car novated lease save?
On a $110,000 salary, a $60,000 electric car over 3 years, driven 15,000 km a year, costs your take-home pay $11,115.03 a year. Paying the same lease and running costs from take-home pay would cost $17,980.68, so the saving is $6,865.65 a year. The saving depends on your tax rate and offsets, so it changes with salary: about $8,009.94 on $180,000 and $7,075.85 on $70,000, where packaging also increases the low income tax offset.
Which electric cars are exempt from FBT?
Zero or low emissions cars (battery electric and hydrogen fuel cell cars) first held and used on or after 1 July 2022, with a first retail price at or below the luxury car tax threshold for fuel-efficient vehicles, $91,661 in 2026–27. Plug-in hybrids are no longer exempt unless they were already under a financial commitment before 1 April 2025. Source: Electric cars exemption, ATO.
Does an EV novated lease affect HECS or the Medicare levy surcharge?
It can. The car isn’t taxed, but its taxable value grossed up by 1.8868 is a reportable fringe benefits amount ($22,641.00 on the default $60,000 car). That amount counts as income for HECS-HELP repayments, the Medicare levy surcharge and some government payments. The calculator shows the extra you’d repay.
Are charging costs included in an EV novated lease?
Yes, they can be packaged with the lease along with registration, insurance, servicing and tyres. Home charging is usually covered at a rate per kilometre or from your electricity bills, depending on the provider. At 30c per kWh and 16 kWh per 100 km, charging costs about 4.8c a kilometre.