International calculators

Australia novated lease and salary-packaging calculator

Choose novated lease to calculate vehicle finance and the effect on take-home pay from vehicle price, running assumptions and interest. The alternative mode retains living-expense and meal packaging for eligible charity/hospital employers.

2026/27 resident tax and current FBT scenarioAustralia — independent novated lease and eligible charity packaging modelsReviewed 15 October 2026

Your figures

Example values shown

Replace the example with your details, then calculate.

AUD
AUD
AUD
AUD
grossed-up AUD
grossed-up AUD
AUD
AUD
AUD
years
%
km
kWh or litres
AUD
AUD
AUD
AUD
AUD
AUD

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BEHIND THE NUMBERS

How this calculation works

Lease capital is GST-inclusive vehicle price less the capped input credit. Solve monthly rent with the ATO residual. Annual pre-tax deduction is lease/running/admin cost after GST credits plus FBT less 10/11 of the after-tax ECM. Compare before/after resident Income Tax and Medicare, and include the residual when comparing full-term ownership cost.

Worked example

AUD11,000 less AUD1,000 GST gives AUD10,000 capital. The 65.63% residual is AUD6,563 excluding GST; annual rent is AUD3,437 at zero interest. At 30% marginal Income Tax plus 2% Medicare the annual take-home reduction is AUD2,337.16, or AUD194.76 monthly. Residual including GST is AUD7,219.30.

Example result: A$194.76

Step 1

Choose novated lease and enter vehicle price, finance term and rate, expected driving and running costs.

Step 2

The calculator derives GST-adjusted capital and rent with a residual, then calculates the annual pre-tax and after-tax deductions under the selected FBT method.

Step 3

Review the debt schedule, reportable-benefit estimate and ownership-cost comparison including the residual. The alternative charity packaging mode retains its own separate cap calculation.

Assumptions and rounding

  • Novated mode: new passenger car first supplied in 2026/27 before 1 April 2027. Rates are a 2026 scenario held constant, not a forecast of future legislation.
  • Full-year resident, no HELP, SAPTO, other offsets or Medicare surcharge, full 2% Medicare; taxable salary remains at least AUD 45,000. GST-registered employer claims available credits.
  • Standard residual table assumes an eight-year car life and first lease of 1–5 whole years. Statutory benefit is 20% of vehicle price, with day apportionment and the reduction after four complete FBT years.

Questions about this calculator

Does the comparison include the balloon?

Yes. The residual plus GST is added to take-home reductions and upfront on-road costs.

Why does an electric car still have a reportable benefit?

The current exemption removes FBT for qualifying vehicles; it does not generally remove the reportable amount used in some income tests.

Can I still calculate charity living-expense packaging?

Yes. Select the charity living expenses and meals mode; its separate cap model is retained.