Australian Novated Lease Calculator 2026–27
Estimate how a novated lease could affect your take-home pay, vehicle costs, tax and GST benefits in Australia for 2026–27. Compare the estimated cost with paying for a car from after-tax income and see the residual value at the end of the lease.
Actual estimated reduction in your regular fortnightly pay slip.
Your Novated Lease Breakdown
Summary of annual packaged commitments, tax and GST concessions, take-home pay reduction, and residual value.
GST savings are estimated using simplified assumptions about eligible lease and running-cost expenses. Actual GST treatment can vary by expense and arrangement.
What does this result mean?
Your estimated take-home pay impact shows how much your regular pay could change after the novated lease packaging costs and associated tax effects are included. The result is an estimate based on the information entered above and the selected 2026–27 assumptions. Because eligible deductions are paid from pre-tax salary, your taxable income is reduced, lowering your income tax and Medicare levy while paying for your car and eligible running costs.
Novated Lease vs Car Loan
Compare packaging this vehicle against financing and maintaining it from after-tax income.
This comparison uses an illustrative car loan rate of 7.9% p.a. Users can customize this with their actual quoted rate in Advanced options. The comparison shows how the estimated cost changes when the vehicle is packaged through a novated lease rather than paid from after-tax income.
Residual Value & End of Lease
Understanding the residual balloon and your options when the novated lease term finishes.
The residual is the amount remaining under the selected lease assumptions at the end of the lease term. It is separate from the regular packaged costs shown above.
End-of-Lease Options
Pay the residual value from personal funds to own the vehicle outright, or refinance the residual into a secondary lease term.
You may be able to sell or trade the vehicle at the end of the lease. The outcome depends on the sale price, residual payout and the terms of your lease arrangement.
Return or conclude the arrangement with your packaging provider where applicable according to your lease agreement terms.
For detailed ATO statutory schedules and guidelines, explore our in-depth guide on Novated Lease Residual Values: ATO TD 93/142 Explained →
How This Calculator Works
A step-by-step summary of how Calcivo estimates your novated lease deductions and savings.
Vehicle Price & Type
Enter the vehicle purchase price and select powertrain to model EV FBT exemption rules or 20% ECM.
Salary & HELP
Specify gross income to determine your marginal tax bracket, Medicare levy, and study loan repayments.
Lease Term & Distance
Choose a term from 1 to 5 years and expected annual distance to apply statutory ATO residual schedules.
Running Costs
Model fuel or charging, insurance, registration, and servicing as a simple total or itemised breakdown.
Take-Home Impact
Review pre-tax deductions, GST savings on purchase/operating costs, and the net take-home pay impact.
Assumptions & Limitations
Key financial, tax, and statutory assumptions governing this calculation engine.
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2026–27 Tax Year: Calculations use enacted resident individual income tax rates (including the 15% second bracket) and standard 2.0% Medicare levy with low-income phase-in.
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Superannuation: Assumes statutory 12.0% Superannuation Guarantee applies to base ordinary time earnings.
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HELP / STSL Treatment: Compulsory repayments apply 2026–27 marginal repayment rates above the $69,528 threshold. Reportable Fringe Benefits Amounts (RFBA) are included in repayment income where applicable per HESA s 154-15.
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EV & FBT Treatment: This vehicle may qualify for the EV FBT exemption if it meets the applicable zero-emissions and LCT requirements. Eligibility depends on applicable FBT rules. Non-exempt vehicles apply the statutory 20% Employee Contribution Method (ECM) using post-tax funds.
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ATO Residual Schedule: Defaults to statutory minimum residual percentages under ATO Taxation Determination TD 93/142 (1 yr: 65.63%, 2 yrs: 56.25%, 3 yrs: 46.88%, 4 yrs: 37.50%, 5 yrs: 28.13%). Residual basis is based on the relevant vehicle cost to the lessor and is not reduced by GST input tax credits. Trade-ins reduce the financed amount but do not automatically reduce the statutory residual basis.
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FBT Base Value & ECM: Base value is modeled on the vehicle purchase price entered (including GST and options), excluding non-capitalised on-road costs. The ECM utilizes post-tax funds to reduce FBT taxable value dollar-for-dollar.
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GST Credits Treatment: Vehicles purchased from GST-registered dealerships reflect an upfront GST Input Tax Credit capped at $6,353 (based on the $69,883 car depreciation limit for 2026–27). Packaged operating expenses reflect 10% GST credits on taxable supplies.
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Pay Frequency Rounding: Annualized figures are divided across pay frequencies (52 weekly, 26 fortnightly, 12 monthly). Actual employer payroll withholding applies official ATO PAYG withholding schedules and rounding tables.
Estimate Disclaimer: Calcivo provides educational estimates for general comparison purposes based on standard ATO statutory rules. In practice, the exact lessor vehicle cost basis may separate drive-away price into vehicle acquisition cost and non-capitalised on-road costs (registration, CTP, stamp duty), and actual payroll deductions vary based on employer packaging providers, lessor terms, and applicable tax legislation. Results do not constitute a formal lease quote or financial advice.
Official Sources
Official Australian Taxation Office, statutory legislation, and government references.
Statutory eligibility criteria, zero-emission definitions, and fuel-efficient LCT threshold guidelines.
Statutory minimum residual values for motor vehicle leases from 1 to 5 years.
Official fuel-efficient and standard luxury car tax thresholds for 2026–27.
Independent consumer guidance on comparing car finance, interest rates, and loan charges.
Workplace rights and lawful salary sacrifice arrangements under Australian employment law.
Marginal repayment income tiers and Reportable Fringe Benefits rules.
Frequently Asked Questions
Direct answers to common questions about novated leasing, EV FBT exemption, and residual values.
Novated Lease & EV FBT Educational Guides
Explore in-depth research on statutory EV FBT exemptions ($91,661 LCT cap), ATO TD 93/142 residual values, and bank car loan comparisons.
EV Novated Lease FBT Exemption & Tax Rules Australia (2026–27)
Learn how the Australian EV FBT exemption works for eligible zero-emission vehicles, including LCT limits, GST treatment and novated lease salary packaging.
Novated Lease vs Bank Car Loan: Tax Savings & Cost Comparison (2026–2027)
Compare novated leases and car loans in Australia, including estimated costs, tax treatment, salary packaging, GST and potential savings for 2026–27.
Novated Lease Residual Values: ATO TD 93/142 Explained
Understand novated lease residual values, ATO TD 93/142 and statutory residual percentages used for lease calculations in Australia.
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