Vehicle & salary
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Quick-fill:
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Set a date on or after 1 April 2027 to model the new FBT rules.
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Annual running costs
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FBT treatment: Lease starting before 1 April 2027: this EV is fully FBT-exempt (under $91,661), so the whole lease is packaged pre-tax.
Estimated cost — includes all running costs & tax savings
$935
per month
Weekly
Fortnightly
Monthly
Residual (balloon) payment at end of term
ATO minimum 46.88% of the financed amount over 3 years
$25,726
Amount financed: $54,875 = drive-away $60,000 + establishment fee $0 − GST credit $5,125.
The GST credit is 1/11 of the car price ($56,372), not the drive-away price — registration, CTP and stamp duty carry no GST.
💰 Potential tax saving
Tax saving over the lease
$15,841
Tax saving per year
$5,280
Lease starting before 1 April 2027: this EV is fully FBT-exempt (under $91,661), so the whole lease is packaged pre-tax. This is the income tax you save by packaging the lease from pre-tax salary over 3 years. Lease residual owing at end: $25,726.
Cost breakdown
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What your pay slip should look like
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Compare against a car loan
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Worked examples by car price
See the full cost by salary for a $60,000, $70,000, $80,000 or $90,000 drive-away EV on a 3-year novated lease — weekly, fortnightly and monthly cost for salaries from $90,000 to $220,000.
How the EV FBT exemption changes from 1 April 2027
Today an eligible EV under the fuel-efficient luxury car tax threshold ($91,661 for 2026–27) is fully exempt from FBT, so the whole lease is packaged pre-tax. That narrows in stages. Enter your lease start date above and the right rules apply automatically.
| Lease starts | EV base value | FBT treatment |
|---|---|---|
| Before 1 Apr 2027 | Under $91,661 | Full exemption |
| 1 Apr 2027 – 31 Mar 2029 | $75,000 or less | Full exemption |
| $75,001 – $91,661 | 25% FBT discount | |
| $91,662 or more | No concession | |
| From 1 Apr 2029 | Under $91,661 | 25% FBT discount |
“25% discount” is not a 25% saving. The FBT that would otherwise apply is cut by a quarter — the remaining three quarters is still payable, covered by post-tax (ECM) contributions, so part of your payment stops being tax-free. You stay better off than with a petrol car, but clearly worse off than under today’s full exemption. From 1 April 2029 the $75,000 tier disappears, so every eligible EV drops to the discount. “Eligible” means battery-electric or hydrogen fuel-cell; plug-in hybrids lost the concession on 1 April 2025. Announced 5 May 2026 and not yet legislated — confirm with a licensed novated lease provider or tax adviser before committing.
How this works: A novated lease is a three-way agreement between you, your employer and a financier. Your lease payments and running costs come out of your salary — partly before tax (reducing your taxable income) and partly after tax (the Employee Contribution Method, used to cancel out Fringe Benefits Tax). For fully electric vehicles (EVs) priced under the luxury car tax threshold for fuel-efficient vehicles, the government waives FBT entirely, so the whole lease can be packaged pre-tax — which is why EV savings are dramatically larger. Plug-in hybrids (PHEVs) lost this exemption from 1 April 2025 and are now treated the same as petrol, diesel and conventional hybrids. We compare the after-tax cost of leasing against buying the same car with a car loan at the same rate. This is an estimate using 2025–26 tax rates; it excludes the Medicare Levy Surcharge, HELP/HECS debt, and your Reportable Fringe Benefits Amount (RFBA), which can affect family-payment and surcharge thresholds. Always confirm with a licensed novated lease provider or tax adviser before committing.