🇦🇺 Australian Tax 2025–26 · Full Cost Disclosure

Novated Lease Transparency Calculator

Every cost shown — not just the savings

⚠️ This calculator shows all costs, including fees and market-realistic interest rates. Adjust every assumption to match your real quote.
YOUR DETAILS
$40k$300k
$15k$200k
+ On-Road & Vehicle Costs (expand for exact quote matching)

Enter figures from your quote to match exactly. Defaults are QLD estimates based on a Toyota quote.

$0$20k
$0$5k
$0$5k
$0$2k
$0$2k
$0$100
Quote Sense Check
Vehicle (incl. GST)—
Options / accessories—
Dealer delivery—
Total Vehicle Cost (incl. GST)—
Stamp duty—
Registration—
CTP insurance—
= On Road Cost (incl. GST)—
Total Vehicle Cost ex-GST—
+ Stamp duty—
+ Registration—
+ CTP insurance—
+ PPSR fee—
+ Establishment fee—
= Amount Financed—
Cross-check "On Road Cost" and "Amount Financed" against your provider quote.
Pure Electric Vehicle (FBT Exempt) Eligible EVs under $91,387. PHEVs excluded from 1 Apr 2025.
Employee Contribution Method (ECM) Standard practice — a post-tax contribution eliminates FBT. Used by almost all providers. Turn off to see raw FBT cost.
LEASE COSTS & FEES (adjust to your real quote)
6%15%

Market range: 8–12% p.a. (2025). Default 9.5% = realistic mid-market. Advertised rates of 6–7% are promotional exceptions. Sources: Skip The Dealer, Money.com.au, Novated Finance Australia (late 2025).

$0$1,500
$0$800

Real examples — Maxxia: $200/yr · Oly: $396/yr · Hyundai/Oly: $220/yr. Always request a full fee schedule before signing.

BUNDLED RUNNING COSTS
$0$8k
$300$2k
$500$5k
$0$3k
FULL PICTURE RESULTS
Pre-Tax Deduction
—
reduces taxable income
Post-Tax Costs
—
finance + running from take-home
Tax Saved
—
income tax benefit
WHERE DOES YOUR SALARY GO?

Follow your pay cheque step by step — with and without a novated lease.

StepWithout LeaseWith Lease
Gross Salary — —
Step 1 — Pre-Tax Sacrifice
Pre-tax sacrifice (ECM — base value × 20%, eliminates FBT) $0 —
Taxable Income — —
Step 2 — Tax
Income Tax + Medicare — —
Salary After Tax — —
Salary Deduction Summary Without With Lease
Pre-tax salary deduction $0 —
Post-tax salary deduction (ECM) $0 —
Total salary deduction $0 —
Step 3 — Remaining Costs (post-tax portion)
Finance repayment — —
↳ of which: interest only — —
Running costs (fuel, rego, insurance, servicing) — —
Management fee — —
Estimated Take-Home (after all costs) — —
Difference in take-home —

The pre-tax sacrifice (ECM) and post-tax costs are not two separate costs — they are two slices of the same total lease cost. The split is structured so the pre-tax portion equals the car's FBT taxable value, which eliminates FBT. The tax saving comes entirely from that pre-tax slice reducing your taxable income.

FEES & FINANCING COSTS (OVER FULL TERM)
CostAmount
Establishment Fee (one-off, post-tax)—
Management Fees × 3 yrs—
Total Interest Paid @ 9.50% on financed amount—
Total Fees & Financing—
APPLES-TO-APPLES COST COMPARISON

Both scenarios end owning the same car. Lease costs are ex-GST (employer claims GST credits). Cash buyer pays full GST-inclusive prices. Both sides assume you pay the balloon at end of term.

ItemNovated LeaseBuy with Cash
Vehicle purchase price — —
↳ Car value at end of term — —
Net depreciation cost — —
Interest paid over 3 yrs — $0
Fees over term — $0
Running costs over 3 yrs — —
Income tax saved over 3 yrs — $0
Total net cost — —
Lease vs. cash — you save —

Lease running costs are ex-GST (employer claims back GST credits). Cash buyer pays full GST-inclusive prices — a real ~10% saving on running costs.

ℹ️ 2025–26 ATO Tax Rates Applied
This calculator uses current 2025–26 ATO income tax brackets (16% / 30% / 37% / 45%). Provider quotes may show different figures if their systems use older rates — this does not affect the relative saving since it applies to both sides equally.
IS IT WORTH IT?
Benefit Score (vs. paying cash)
—
⚠️ Reportable Fringe Benefits Amount (RFBA)
Even when FBT is $0 (e.g. on an EV), a novated lease still generates a Reportable Fringe Benefits Amount. This can affect: Medicare Levy Surcharge thresholds, HECS/HELP repayment rates, child support assessments, Centrelink/family payments, and private health insurance rebates. Ask your provider for the RFBA figure and factor it in.
⚠️ Employment & Early Exit Risk
The lease is a fixed contract. If you change jobs, lose your job, or your new employer won't take over the lease, payments revert to post-tax dollars — or you may face break costs and early termination fees. This is a 3-year financial commitment. Factor in your job security.
✅ What Actually Makes It Worth It
Novated leasing works best if: you're in the 32.5%+ tax bracket, you have stable employment for the full term, the vehicle is EV-eligible (no FBT), you negotiate low fees, and you compare the provider's rate against the open market.
📋 Disclaimer: Estimates only. Not financial advice. Uses 2025–26 ATO tax rates, 47% FBT rate, type-2 gross-up factor (2.0802), and ATO statutory residual values. Interest rate default of 9.5% p.a. reflects a market mid-point — your actual rate will vary by provider and credit profile. GST saving capped at $6,334 per ATO 2025–26 guidelines. Always obtain a personalised quote and seek independent financial advice before proceeding.