EV Novated Lease Tax Calculator

Yes. Under the Electric Car Discount Act 2022, eligible zero or low emission vehicles (ZLEVs) provided through a novated lease are exempt from FBT. This means the entire lease cost can be paid from pre-tax salary. The vehicle's value must be below the luxury car tax threshold ($91,387 for FY 2025-26).

Savings depend on your income and vehicle cost. For a salary of $85,000 and an EV at $55,000 over 3 years, total savings typically range from $12,000–$22,000 combining tax savings, GST saving, and FBT exemption.

To qualify: (1) Battery electric, hydrogen fuel cell, or PHEV (pre-1 April 2025 only). (2) Must be a car — not a ute or van designed to carry more than 1 tonne. (3) GST-inclusive price must be under $91,387 (FY 2025-26 luxury car threshold for fuel-efficient vehicles).

Yes. While the lease reduces your taxable income, the exempt benefit is reported as a 'reportable fringe benefit amount' (RFBA). The RFBA is added back when calculating your HECS-HELP repayment income — so a novated lease does not reduce your HECS obligation. It also affects Family Tax Benefit and childcare subsidy income tests.

Yes. Under a fully maintained novated lease, operating costs — including home and public charging, registration, insurance, tyres, and servicing — can all be bundled into your pre-tax lease payment, extending the tax benefit beyond just the car finance.

At lease end you typically have three options: (1) Pay the residual value to own the car outright. (2) Re-finance the residual into a new lease on the same car. (3) Return the car and start a new novated lease on a different vehicle. The residual value is set at the start of the lease and guaranteed — you are not exposed to market depreciation risk.