EV Novated Lease Calculator – Electric Car Tax Savings
Since April 2022, eligible battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) under the luxury car tax threshold may qualify for a full FBT exemption on novated leases in Australia. This calculator estimates your potential savings.
Novated Lease Calculator
Compare novated lease, car loan and cash purchase — side by side. No signup. No bias.
Side-by-Side Comparison
| Factor | 🚗 Novated | 💳 Loan | 💰 Cash |
|---|---|---|---|
| Monthly cost | — | — | — |
| Total cost (term) | — | — | — |
| Tax impact | Pre-tax savings | Post-tax only | No tax benefit |
| Ownership | Finance co. / employer | You (lender security) | You (outright) |
| Flexibility | Tied to employer | Fully independent | Fully independent |
| Running costs bundled | ✅ Yes | ❌ Separate | ❌ Separate |
- Enter your details above to see personalised insights.
⚠️ Estimated values only. Calculations use simplified formulas and do not account for all individual circumstances, employer arrangements, or legislative changes. Always consult a licensed financial adviser before making financial decisions. Tax rates used are approximate marginal rates only.
The EV FBT Exemption Explained
Under the Treasury Laws Amendment (Electric Car Discount) Act 2022, employers providing eligible EVs via novated lease are exempt from Fringe Benefits Tax. This benefit flows to employees as significantly lower after-tax costs compared to a petrol vehicle.
Which EVs Are Eligible?
The vehicle must be: a zero-emission BEV, hydrogen fuel cell, or plug-in hybrid (phased out from 1 April 2025 for new leases); first held and used on or after 1 July 2022; and under the luxury car tax threshold for fuel-efficient vehicles (check the ATO for the current year’s threshold).
Frequently Asked Questions
Do PHEVs still qualify for the FBT exemption?
From 1 April 2025, new PHEV novated leases are no longer eligible for the FBT exemption. Existing PHEV leases entered before that date retain the exemption until the lease ends.
Are EV running costs much lower?
Yes. Electricity costs per kilometre are typically 60–80% lower than petrol, and EV servicing requirements are significantly reduced. This calculator allows you to adjust fuel/energy cost inputs to reflect your expected running costs.