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Novated Lease Calculator

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Your Novated Lease Summary
Monthly Deduction
$750/mth
Post-Tax Deduction
$507/mth
Annual Savings
$2,916/yr
5-Year Savings
$14,580

Lease vs Buying Outright Comparison

ScenarioAnnual CostAfter-Tax Cost5-Year Cost

Benefits Breakdown

BenefitAnnual AmountTax Saving

How It Works

A novated lease allows salary sacrifice arrangements where lease payments are deducted from pre-tax salary, providing significant tax benefits.

The employer leases the vehicle, your employee agrees to meet lease obligations, reducing your taxable income.

Tip: Novated leases are highly tax-efficient for employees in higher tax brackets and those with high annual running costs.

Key Benefits

  • Reduce taxable income
  • Lower after-tax vehicle costs
  • Hassle-free fleet management
  • Fully serviced vehicles
  • Upgrade easily at lease end
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Disclaimer: This calculator provides estimates only. Actual FBT and tax implications depend on individual circumstances and ATO rulings. Always consult with your accountant and employer before committing to a novated lease.

Frequently Asked Questions

What is a novated lease?+

A novated lease is a three-way agreement between you, your employer, and a finance company. Your employer deducts lease payments from your pre-tax salary (salary sacrifice), reducing your taxable income. You also save GST on the car purchase and running costs.

How much can I save with a novated lease?+

Savings depend on your income, tax bracket, and the vehicle price. Typically, you can save 20-40% compared to buying outright with after-tax dollars. Higher income earners in higher tax brackets save more due to greater tax benefits.

What happens to my novated lease if I change jobs?+

If you leave your employer, the lease can be novated to your new employer, you can continue making payments personally, or in some cases, you can pay out the lease early. Most novated lease providers help manage this transition smoothly.

Important Disclaimer & Assumptions

Assumptions: Salary packaging savings depend on your marginal tax rate and employer participation. FBT implications vary by calculation method. Running cost estimates are averages — actual costs depend on vehicle type and usage. Residual values are set by ATO guidelines.

General Disclaimer: This calculator is provided by Mortgage & Finance Advisory (Credit Representative 575841 of Connective Credit Services Pty Ltd, Australian Credit Licence 389328) for illustrative and educational purposes only. Results are estimates based on the information you provide and the assumptions listed above. They do not constitute financial advice, a loan offer, or a guarantee of any outcome.

Actual loan terms, interest rates, fees, government charges, and eligibility criteria will vary between lenders and depend on your individual circumstances. Interest rates used are for comparison purposes only and may not reflect current market rates.

We recommend seeking independent financial, legal, and tax advice before making any financial decisions. For personalised advice tailored to your situation, please book a free strategy call with our team.

© 2026 Mortgage & Finance Advisory. All rights reserved. ABN: 90 732 203 952 | Credit Representative 575841 of Connective Credit Services Pty Ltd, Australian Credit Licence 389328