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EV Novated Lease Calculator Australia (2026-27)

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.

Amount financed or paid privately, including on-road costs.

Use the employer or lease quote value. Registration and stamp duty are excluded; dealer delivery and fitted accessories are generally included. Defaults to purchase price if blank.

✓ BEV/FCEV ≤$75,000 acquired before 1 April 2029 — 100% FBT discount applies

FBT exemption: BEV/FCEV only; PHEVs eligible only with pre-1-Apr-2025 commitment.

Must be on/after 1 July 2022 for any exemption.

Used for the announced (not yet law) 2027 and 2029 EV discount transition and grandfathering.

RFBA from a novated lease adds to income-for-MLS purposes even when FBT is $0.

Family MLS is tested on combined household income against a higher threshold.

Residual: 28.13%

Finance & running-cost assumptions

Check your employer's policy or lease quote; salary packaging can reduce the qualifying earnings your SG is calculated on.

EV novated lease saves$2,299.50/yearvs financing the same vehicle privately, with both comparisons including finance and running costs
EV Novated
Private EV
Lease/Finance
$12,829.42
$15,444.93
Running Costs
$3,875.00
$3,875.00
FBT
$0 (exempt)
N/A
Tax Savings
-$5,345.42
$0
Annualised Cost*
$17,020.44
$19,319.93
5-Year Cost
$85,102.19
$96,599.67

*Novated figures include the $18,284.50 residual due at lease end, annualised across 5 years. Private finance is fully repaid over the same term.

After-tax ECM$0.00/yr
Estimated SG reduction$2,004.53/yr
Lease comparison rate8.0% p.a.

Running Cost Breakdown (Annual)

Fuel/Electricity
EV: $675.00Petrol: $2,160.00
Servicing
EV: $500.00Petrol: $1,200.00

Key Insights

  • EV gets the 100% FBT discount (0% statutory rate), avoiding an estimated $12,710.02/year in FBT.
  • EV novated lease saves $14,458.02/year vs petrol novated lease.
  • The model estimates $5,345.42/year less income tax and Medicare levy after the pre-tax deduction.
  • Estimated employer SG is $2,004.53/year lower unless your employer preserves super on pre-packaging salary.
  • EV running costs are $1,485.00/year cheaper than petrol.

Reportable Fringe Benefits (RFBA) — the hidden gotcha

Even though FBT is $0, Your income statement can report the grossed-up taxable value. This adds to income tests for MLS, HELP, Div 293 and family payments.

Notional taxable value$13,000.00
Grossed-up RFBA (Type 2)$24,528.40
Income for MLS: before → after$103,295.58 → $127,823.98
MLS tiernone → tier2

Extra Medicare Levy Surcharge: ~$1,597.80/year. Consider taking out hospital cover to avoid this.

RFBA also affects HELP repayments, FTB, CCS, Private Health Rebate tier, and spouse-super offset eligibility. Type 2 gross-up applies regardless of GST credits.

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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.

FBT discount

Eligible arrangements receive the statutory discount applicable to their value and start date

Pre-Tax Payments

Lease and running costs come from pre-tax salary, reducing your taxable income

Editable Running Costs

Compare electricity, fuel and servicing using assumptions you can change

Which vehicles qualify?
→ 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
→ LCT never payable: check the quote against the $91,661 fuel-efficient threshold for 2026-27

Use the values from your quote

Enter the purchase amount separately from the FBT base value, plus the lease comparison rate, private-finance rate and arrangement start date. The FBT base generally excludes registration and stamp duty, so a drive-away price alone is not a reliable exemption test.

Considering a petrol, hybrid, or general novated lease comparison instead? See the Novated Lease Calculator for the non-EV-specific breakdown of pre-tax savings and the Employee Contribution Method.

FAQ
What is the EV FBT exemption?
From 1 July 2022, eligible zero or low emissions cars provided for employee private use can receive the Electric Car Discount if luxury car tax has never been payable. The 2026-27 fuel-efficient vehicle LCT threshold is $91,661. Budget 2026 announced a transition that would change the statutory rate for some arrangements from 1 April 2027 and 1 April 2029 — the ATO confirms this measure is not yet law — which the calculator models separately.
How much can I save with an EV novated lease?
Savings depend on the lease quote, private-finance rate, salary, FBT base value, arrangement date, running costs, residual and your employer's super treatment. Enter the figures from your quote: the calculator compares the same EV under novated lease and private finance instead of assuming a typical saving.
Does the FBT exemption apply to plug-in hybrids?
From 1 April 2025, PHEVs are no longer a qualifying electric car for the exemption. PHEVs can remain exempt only if (a) their use was exempt before 1 April 2025 AND (b) there is a financially binding commitment in place before that date to continue providing the car for private use.
Do I still have to report anything if my EV is FBT-exempt?
Yes. Even when FBT payable is $0, the employer must report the grossed-up notional taxable value on your income statement as a Reportable Fringe Benefits Amount (RFBA). The RFBA flows into income tests for the Medicare Levy Surcharge, HELP repayments, Division 293 super tax, Family Tax Benefit, Child Care Subsidy, spouse super tax offset and the Private Health Rebate. The 2026-27 Type 2 gross-up rate is 1.8868.
What changed with the LCT 'fuel-efficient' definition on 1 July 2025?
From 1 July 2025 the fuel-efficient threshold ($91,661 for 2026-27) applies only to vehicles with fuel consumption not exceeding 3.5 L/100 km. The calculator asks for the FBT/LCT base from your quote rather than attempting to infer LCT treatment from a drive-away price.
What happens if the EV costs more than $91,661?
If luxury car tax has been payable on the car, it does not qualify for the Electric Car Discount. The standard car FBT rules can then apply, although an after-tax employee contribution may reduce the taxable value.
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.

Tax Accuracy & Sources

Tax year: 2026-27

Estimates EV novated lease and private-finance costs using the entered comparison rates, ATO minimum residual, FBT discount schedule, RFBA, running costs and optional SG treatment. It does not model provider fees, GST credits/refunds, days unavailable for private use, resale value, or a lender's exact quote.

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