Novated lease calculator
Move the sliders. The figure below is the income tax you would not pay, on 2026-27 rates. It is an illustration, not a quote, and the assumptions underneath it are worth two minutes of your time.
Indicative comparison
2026-27 rates, illustrative only
- Gross salary
- $95,000
- Pre-tax lease deduction
- ($12,000)
- Taxable income
- $83,000
- Tax and Medicare, without a lease
- $20,920
- Tax and Medicare, with a lease
- $17,080
This is the tax difference only. It is not your take-home change, because the lease payment itself still comes out of your pay.
What is in this number
This figure is the income tax you would not pay, and nothing else. Here is everything it does and does not account for, so you know exactly what you are looking at before a provider gives you the full picture.
It assumes an eligible electric car
The saving shown is the income tax you no longer pay on the salary going into the lease. It assumes the car qualifies for the FBT exemption, so there is no post-tax contribution to offset FBT. A petrol or diesel car normally needs one, which reduces the benefit.
It ignores the Medicare levy surcharge
A novated lease is a reportable fringe benefit, and income for surcharge purposes is taxable income plus that reported amount. A lease can therefore push you into a surcharge tier, or up one, if you do not hold private hospital cover.
It ignores Division 293
Division 293 income uses the same calculation as the Medicare levy surcharge, and it includes the reported fringe benefits amount. Combined income and concessional contributions above the threshold attract an extra 15% on super contributions.
It ignores study and training loans
Repayment income also includes the reported fringe benefits amount, regardless of your employer type. A lease can lift your compulsory repayment even though your taxable income has gone down.
It ignores the running costs bundled into a lease
Real quotes package fuel or charging, insurance, registration and servicing. Those change the comparison in both directions and are specific to the vehicle and the driver.
Common questions
Is this an accurate quote
No. It is an illustration of one thing only: the income tax you no longer pay when part of your salary goes into a lease before tax. A real quote depends on the car, the lease term, the residual, your employer and the running costs bundled in. Novii is an information and referral service, not a lease provider, so the quote comes from the provider.
Why is my saving different from the number here
Most often because of the things this calculator deliberately leaves out. A novated lease is a reportable fringe benefit, and that reported amount is added back when the ATO works out the Medicare levy surcharge, Division 293 and compulsory study loan repayments. Your taxable income falls, but those three tests can still see the benefit.
Does the FBT exemption on electric cars remove all of that
No. The exemption removes the fringe benefits tax your employer would otherwise pay. It does not remove the reporting. An exempt electric car is still a reportable fringe benefit, so the amount still appears on your income statement and still counts towards those income tests.
What figures does this use
The 2026-27 resident tax rates and the 2% Medicare levy, both from published ATO material. Every figure on this site comes from one checked source file rather than being written into a page.
Get a real quote
An illustration is not a quote. For figures on an actual car, with running costs and a residual, request one.
If the number above raised questions rather than answering them, what a novated lease is covers the arrangement, the comparison against a car loan and cash puts it in context, and the eligibility test decides whether the FBT exemption applies to the car you want.
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Novii is an information and referral service. When you request a quote your details are provided to an Australian novated leasing provider. Novii is not a lease provider, financier or financial adviser.