Calculators › EV novated lease calculatorCalculator · Updated November 2026

EV novated lease calculator

See what an EV on a novated lease would cost your take-home pay each fortnight, how much income tax it saves, the balloon at the end, and whether a lease beats a car loan or paying cash for you. It uses 2026–27 tax rates and the tax office's lease rules, and works for every EV under the luxury car tax threshold. It's an independent estimate: we don't sell leases.

What would a novated lease cost you?

Pick an EV and your salary to see what a novated lease would cost you, and how it compares with a car loan or paying cash. Independent: we don't sell leases.

Which EV?

Your salary before tax ($ a year)

Lease length

How far you drive each week (km)

Fine-tune the assumptions

Lease interest rate (% a year)EV lease quotes mostly ran 8.5–10% in late 2026. Use the effective rate from your quote.

Car loan rate for comparison (% a year)

Leasing company fees ($ a year)Set-up and management fees vary by provider and employer. Check your quote.

Insurance ($ a year)

Rego and CTP ($ a year)

State (for home charging cost)

An estimate, not a quote. We don't sell leases or earn anything from them. This uses 2026–27 tax rates, the 2% Medicare levy and the low income tax offset, the tax office's minimum residuals and the GST credit limit ($6,353), with typical fees and rates you can change above. Real quotes differ: fees, interest, insurance, how the running-cost budget is set and your own tax situation (HELP debt, other income, salary sacrifice) all change the result. The car also counts as a reportable fringe benefit, which can affect family payments and HELP repayments. Get two or three written quotes and compare the total cost, not just the fortnightly figure. This is general information, not financial or tax advice.

How we work it out: the leasing company claims the GST on the car (up to the limit), so the rest of the drive-away price is financed. Monthly payments run down to the tax office's minimum residual. Payments, fees and running costs come out before tax, less the GST your employer claims back. Because EVs under the luxury car tax threshold are exempt from fringe benefits tax, nothing has to come from after-tax pay. The loan and cash totals pay the same running costs from take-home pay and don't include interest you might earn on savings. Only EVs under the $91,661 threshold are listed.

When is a novated lease worth it?

Higher salaries save more. The saving is your tax rate on everything paid pre-tax, so someone on the 37% or 45% rate saves far more than someone on 15%.
EVs are the sweet spot. Electric cars under the luxury car tax threshold are exempt from fringe benefits tax, so the whole lease and running costs come out before tax. Petrol cars and, since April 2025, plug-in hybrids don't get this.
Watch the balloon. At the end you owe a residual set by the tax office (46.88% of the price after GST on a 3-year lease). Paying it, refinancing it or selling the car is part of the real cost.
Fees and rates matter. A rate 1–2% higher, or a set-up fee rolled into the loan, can wipe out a lot of the saving. Compare two or three written quotes on the total cost.
Changing jobs usually means taking the lease with you (if the new employer agrees) or paying it out.

Before you sign

EV novated lease savings and the FBT exemption: how it works and what changes from April 2027.
Novated lease checklist: the questions to ask your provider, printable.
Luxury car tax on EVs: the price limit for the FBT exemption.
Cheapest EVs to own: running costs and five-year cost for every EV.
EV car insurance: what to budget for insurance in your lease.
Home charger costs: some providers can include a wall charger in the lease.
Compare cars side by side before you choose.

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Common questions

How is a novated lease calculated?

The leasing company buys the car and claims back the GST (up to $6,353 in 2026–27), so the rest of the price is financed. Repayments run down to a residual set by the tax office. The repayments, running costs and fees come out of your salary before tax, less any GST your employer claims back. For an eligible EV there's no fringe benefits tax, so it can all be paid pre-tax.

Is a novated lease worth it for an EV?

Often, especially on a higher salary, because EVs under the luxury car tax threshold are exempt from fringe benefits tax. On a lower income, a short lease or a high interest rate, a car loan or paying cash can work out cheaper. The calculator shows which wins for you.

What is the residual or balloon on a novated lease?

It's the amount left to pay at the end, set by the tax office as a minimum percentage of the car's price after GST: 65.63% for 1 year, 56.25% for 2, 46.88% for 3, 37.5% for 4 and 28.13% for 5 years. GST is added when you pay it.

Do you save GST with a novated lease?

Yes. The leasing company claims the GST on the car's purchase price, up to one-eleventh of the car limit ($6,353 in 2026–27), and your employer claims GST on most running costs.

Will the EV FBT exemption end?

Under the May 2026 budget proposal, the full exemption stays until 31 March 2027. From April 2027 it's limited to EVs up to $75,000, with a 25% discount above that, and from April 2029 new leases get a 25% discount. It isn't law yet.

More guides

Cheapest EVs to own in AustraliaThe electric cars that cost the least over five years, counting price, charging, servicing and tyres.Best used EVs and hybridsThe best used EVs and hybrids under $20k, $30k, $40k and $50k, with typical prices, every recall and known faults.Check a used EV's battery healthIndependent battery tests and prices, dealer reports, apps and brand-by-brand tips for checking a used EV's battery.

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How we work it out, and our sources

Weekly cost = the car's energy use × 250 km × your electricity or fuel price, with 90% of charging at home. Prices are list prices at October 2026; check with the dealer.

Electricity: 2026–27 default rates (AER, Victorian Default Offer, state retailers). Public charging: Sydney network prices, July 2026.
Petrol and diesel: ACCC capital-city averages, 21 October 2026.
Cars: maker figures via CarExpert, Drive, CarsGuide and EV Central. Plug-in electric range is taken as 80% of the claim.
Servicing: published capped prices; marked as an estimate where not yet published (CarExpert comparison).
Tyres: an EV set lasts about 35,000 km, a petrol or hybrid set 50,000 km (RACV); prices from Gridly.
Home charger: about $2,000 installed ($1,000–$3,000). Novated leases: PwC summary.

Printed from EV Pick · evpick.com.au. Prices and costs are estimates; check with the dealer. © 2026 EV Pick (T. Crouch). For personal use only; not to be copied, republished or sold without permission.