Calculate your novated lease savings. Enter your salary, car price, and running costs to see how salary packaging reduces your tax and what your take-home pay looks like.
| Without novated lease | With novated lease | |
|---|---|---|
| Fortnightly take-home | $2,577.40 | $2,102.37 |
| Fortnightly car cost | $698.57(from after-tax pay) | $0.00(already deducted pre-tax) |
| Net fortnightly after car costs | $1,878.83 | $2,102.37 |
By salary packaging your car, you could save $5,812 per year in tax. Over a 3-year lease, that is $17,436 in total estimated savings.
| Component | Monthly | Annual |
|---|---|---|
| Finance (lease payment) | $846.90 | $10,163 |
| Running costs (fuel, insurance, rego, servicing) | $666.67 | $8,000 |
| Total package | $1,513.57 | $18,163 |
Higher earners save more because a larger share of the lease payment is offset against a higher marginal tax rate. Move the salary slider to see how your tax bracket affects the saving.
A shorter lease means higher monthly payments but a lower residual value at the end. A longer lease reduces payments but leaves a higher residual. The tax saving changes too because the annual package amount differs.
Running costs (fuel, insurance, rego, servicing) are part of the pre-tax package. Including more running costs increases the salary sacrifice amount and the tax saving, but also reduces your fortnightly take-home pay.
A more expensive car means a larger salary sacrifice package and a bigger tax saving in dollar terms, but it also means a larger residual value due at the end of the lease.
Your employer must agree to salary packaging the lease. Most large employers, government agencies, and not-for-profit organisations offer this as a standard benefit.
Finance providers typically require permanent or long-term contract employment. Casual employees and contractors may not be eligible for novated leasing.
New cars and used cars under 5 years old are generally eligible. Most providers cap the vehicle age at 8 years at the end of the lease term. Electric vehicles may attract additional tax benefits.
Like any finance product, the lease provider will assess your credit history and ability to service the payments. A stronger credit profile may mean a more competitive interest rate.
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Subject to lender approval, terms and conditions apply.
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Results are estimates only and should not be relied upon for financial decisions. Actual novated lease repayments will depend on the lender, your credit profile, and the specific terms offered. Interest rates used are for illustration purposes only and may not reflect current market rates.
Subject to lender approval, terms and conditions apply.
This calculator is general information only and is not financial advice.