EV Novated Lease Calculator Australia (2025-26)
Calculate how much you can save with an electric vehicle novated lease in Australia. Eligible EVs under the luxury car tax threshold are FBT-exempt, which can materially reduce after-tax ownership costs.
Uses 2025-26 ATO rates.
Residual: 28.13%
Enter your salary and vehicle price to compare EV vs Petrol novated lease costs
How the EV FBT Exemption Works
Since 1 July 2022, eligible electric vehicles provided through novated leases are exempt from Fringe Benefits Tax (FBT). This is a significant benefit because FBT can add thousands of dollars to the cost of a salary-packaged vehicle.
No FBT
EVs under $91,387 are completely FBT-exempt, saving thousands per year
Pre-Tax Payments
Lease and running costs come from pre-tax salary, reducing your taxable income
Lower Running Costs
Electricity is ~70% cheaper than petrol, plus EVs need less servicing
Which Vehicles Qualify?
To qualify for the FBT exemption, the vehicle must meet these criteria:
- Zero or low emissions: Battery electric, hydrogen fuel cell, or plug-in hybrid (until April 2025)
- First used after 1 July 2022: New or demonstrator vehicles meeting this date
- Below LCT threshold: Vehicle price under $91,387 (2025-26)
Popular FBT-Exempt EVs
Frequently Asked Questions
What is the EV FBT exemption?
From 1 July 2022, electric vehicles (EVs) provided through novated leases are exempt from Fringe Benefits Tax (FBT) if the vehicle price is below the luxury car tax threshold ($91,387 for fuel-efficient vehicles in 2025-26). This makes EVs significantly cheaper through salary packaging.
How much can I save with an EV novated lease?
Savings depend on your income and the vehicle price. Typically, an EV novated lease saves $5,000-$15,000+ per year compared to buying privately, due to no FBT, pre-tax salary deductions, and lower running costs (electricity vs petrol).
Does the FBT exemption apply to plug-in hybrids?
Plug-in hybrid vehicles (PHEVs) are only eligible for FBT exemption if first used on or after 1 July 2022 and before 1 April 2025. After 1 April 2025, only zero-emission vehicles (battery electric and hydrogen fuel cell) will qualify.
What happens if the EV costs more than $91,387?
If the vehicle price exceeds the luxury car tax threshold, FBT will apply to the entire vehicle value. The savings from salary packaging will still exist, but the FBT cost will significantly reduce the overall benefit. Consider a lower-priced model to maximise savings.
Can I use my existing car for a novated lease?
For the FBT exemption, the vehicle must be "first held and used" after 1 July 2022. This means existing cars don't qualify for the exemption. However, you can still novate an existing car – you just won't get the FBT benefit.
What's included in the novated lease running costs?
Running costs typically include: electricity/fuel, comprehensive insurance, registration and CTP, scheduled servicing, tyres, and roadside assistance. All these costs come from your pre-tax salary, maximising your tax savings.