Salary Sacrifice Car Calculator
Salary sacrificing a car through a novated lease lets you pay for your vehicle with pre-tax dollars. Use this calculator to estimate how much income tax you could save by salary packaging a car.
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.
How Salary Sacrifice Reduces Your Tax
When you salary sacrifice car payments, the deducted amount is removed from your taxable income before PAYG withholding is calculated. This means you pay tax on a lower salary, potentially saving thousands per year.
What Costs Can Be Included?
A novated lease typically bundles: lease repayments, fuel, registration and CTP, comprehensive insurance, tyres and servicing, and roadside assistance. All these costs are deducted pre-tax.
Frequently Asked Questions
Does my employer have to offer novated leasing?
No. Salary sacrifice arrangements must be agreed to by your employer. Most medium and large employers offer novated leasing, but smaller businesses may not. Ask your HR or payroll department.
Is there a limit to how much I can salary sacrifice?
There is no ATO-imposed cap on car novated leases specifically, but your salary sacrifice cannot reduce your take-home pay below the national minimum wage. Check with your employer and a financial adviser.