Novated Lease & EV FBT Exemption Calculator
Zero Fringe Benefits Tax (FBT) on EVs Under $91,387 LCT Cap • Pre-Tax Salary Packaging • GST Input Tax Credits
Vehicle & Packaging Details
Model pre-tax salary deductions and 0% FBT exemption.
Net income tax and GST saved by paying finance & running costs with pre-tax income.
5-Year Total Cost Comparison
| Financing Method | Pre-Tax Cost | Tax & GST Saved | Net 5-Year Out-of-Pocket |
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Understanding Australia's EV Novated Lease Discount
The 0% Electric Car FBT Exemption
Under the federal Electric Car Discount legislation, eligible battery electric vehicles (BEVs) and hydrogen fuel cell electric vehicles (FCEVs) first held and used on or after 1 July 2022 are completely exempt from Fringe Benefits Tax (FBT), provided the vehicle’s purchase price is below the fuel-efficient Luxury Car Tax (LCT) threshold ($91,387 for 2024/2025).
Why the Savings are so Massive
Because of the 0% FBT exemption, 100% of the vehicle’s lease payments and all running costs (charging, comprehensive insurance, registration, servicing, replacement tires) are deducted straight from your pre-tax salary. You pay for your car using dollars that have not been touched by personal income tax or GST.
Next Steps & Related Australian Calculators
Strengthen your financial plan with these interconnected statutory computational models.
Paycheck & Income Tax (PAYG)
Model the pre-tax salary packaging effect on take-home pay.
Australian Car Loan & Balloon
Compare commercial vehicle finance against a novated lease.
Salary Sacrifice to Super
Balance vehicle fringe benefits with concessional super caps.
Australian GST Calculator
Calculate up to $6,334 in GST input tax credits on vehicle lease.