Vehicle & Transport
2026–27 Australian Tax & Vehicle Rules

Australian Novated Lease Calculator 2026–27

Calculate pre-tax salary packaging savings, EV FBT exemption eligibility, LCT condition checks, GST benefits, and net take-home pay under applicable 2026–27 Australian tax rules and ATO guidance.

Novated Lease Calculator Australia 2026-27
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ESTIMATED NOVATED LEASE SAVINGS SUMMARY
2026–27 Australian Tax Rules

Packaging a $61,900 vehicle on a 5-year lease with a salary of $120,000 generates total estimated package costs of $13,979/yr ($1,165/mo). As a zero-emission EV under the applicable 2026–27 fuel-efficient LCT threshold of $91,661, subject to eligibility requirements, delivering estimated tax savings of $4,819 per year and total net savings of $29,721 over the lease term.

LEASE INPUTS
2026–27 Rules
$
Potential EV FBT exemption — eligibility rules applyPotentially eligible — confirm vehicle and transaction eligibility.
$
Include HECS repayment?
Note: leases extending past 1 April 2027 may be affected by the EV FBT exemption phase-out unless grandfathered. See assumptions for details.
$
ESTIMATED LEASE BREAKDOWNAUD Currency
Estimated Annual Tax & GST Savings$4,819 / yr
Total 5-Year Net Savings vs Bank Loan:$29,721
A. ESTIMATED PACKAGE & VEHICLE COSTS
Total Annual Package Cost (Finance + Costs):$13,979 / yr ($1,165/mo)
Estimated GST Benefit (This Vehicle):Upfront purchase ITC benefit + annual running costs GST savings
$5,627 upfront + $345/yr
Estimated Statutory Minimum Residual Value (28.13%):$15,830
B. ESTIMATED EMPLOYEE TAKE-HOME PAY IMPACT
Baseline Take-Home Pay (No Lease):$91,080 / yr ($7,590/mo)
Estimated Take-Home Pay After Lease:$81,574 / yr ($6,798/mo)
Net Monthly Take-Home Pay Reduction:-$792 / mo
Simple & Precise

How Our Novated Lease Calculator Works

Follow these 5 steps to calculate EV FBT eligibility, GST benefits, and net take-home pay.

01

Vehicle Price

Enter total vehicle driveaway retail price including GST.

02

EV FBT Status

Check eligibility against the applicable 2026–27 fuel-efficient LCT threshold of $91,661.

03

Gross Salary

Input gross salary to set marginal resident income tax tier.

04

Lease & Costs

Select lease duration (1–5 yrs) and annual running costs.

05

View Net Impact

Review separated package costs, take-home pay, and tax savings.

2026–27 Novated Lease Assumptions & Methodology

This calculator models novated lease salary packaging using official 2026–27 Australian Taxation Office (ATO) guidelines, Stage 3 resident income tax brackets, 12.0% Super Guarantee, and statutory vehicle thresholds.

  • EV FBT Exemption: Eligible zero-emission BEVs may qualify for the EV FBT exemption where the vehicle meets the applicable requirements, including the relevant 2026–27 fuel-efficient LCT threshold of $91,661.
  • Legislative Framework: Under Australian Treasury legislation, zero and low-emission vehicles priced at or below the fuel-efficient Luxury Car Tax threshold are eligible for FBT exemption when salary packaged through an eligible novated lease. Any future policy adjustments announced by the Government will apply in accordance with enacted statutory commencement dates and applicable lease grandfathering rules.
  • PHEV Treatment: Under applicable 2026–27 Australian tax rules and ATO guidance, PHEVs committed on or after 1 April 2025 do not qualify for EV FBT exemption.
  • General ATO GST Input Credit Cap: Purchase GST input credit is capped at 1/11th of the ATO car depreciation limit ($69,883 for 2026–27), yielding a statutory maximum cap of $6,353. Your vehicle's actual upfront benefit is the lesser of the GST on the vehicle price and this policy cap.
  • Statutory Minimum Residuals: Minimum residual value percentages follow ATO TD 93/142 guidance (e.g. 28.13% for 5-year leases). These figures reflect statutory minimum benchmarks and actual lease provider quotes may vary.
  • Statutory ECM Method: Non-exempt vehicles utilize 20% statutory base value post-tax contribution to reduce FBT to $0.
  • LCT Requirement: EV FBT exemption eligibility can depend on Luxury Car Tax conditions and other applicable requirements.
Accuracy & Statutory DisclaimerLast updated: August 2026

This calculator provides estimates for comparison and planning purposes. Actual novated lease costs, tax outcomes and take-home pay can vary depending on individual circumstances, employer arrangements, vehicle eligibility, financing terms and applicable Australian tax rules.

ATO Minimum Lease Residual Values

Based on ATO residual-value methodology (TD 93/142), indicative statutory minimum residual percentages apply based on lease duration (actual lease provider quotes may vary):

Lease TermATO Statutory Minimum Residual %Example Residual Value ($61,900 Vehicle)
1 Year (12 Months)65.63%$36,932
2 Years (24 Months)56.25%$31,653
3 Years (36 Months)46.88%$26,381
4 Years (48 Months)37.50%$21,102
5 Years (60 Months)28.13%$15,830
WHAT THIS CALCULATOR INCLUDES
  • EV FBT exemption eligibility for zero-emission BEVs under $91,661 LCT
  • PHEV post-1 April 2025 non-exemption rules & grandfathering checks
  • General ATO statutory GST purchase input credit cap ($6,353 max policy limit)
  • ATO statutory minimum residual value percentage schedules (TD 93/142 (ATO ID 2002/1004))
  • Comprehensive 2026–27 resident income tax & 12.0% Super SG modeling
WHAT THIS CALCULATOR DOES NOT INCLUDE
  • Automatic FBT exemption for vehicles exceeding the $91,661 LCT threshold
  • Commercial heavy trucks, machinery, or unregistered off-road vehicles
  • Individual third-party employer management or fleet administration fees

Novated Lease & FBT Guides

Helpful Australian guides analyzing Treasury EV FBT laws and salary packaging outlays.

View All Guides →

Frequently Asked Questions

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