Novated Lease Calculator – Your 2025 Guide to Car Leasing Savings
Estimate your novated lease payments, salary sacrifice benefits, and EV incentives with our updated Novated Lease Calculator for 2025. Trusted by thousands of Australian professionals.
Expert Guide to Novated Leasing in Australia 2025
A novated lease is a three-way agreement between you, your employer, and a finance company that allows you to salary sacrifice your car payments pre-tax, saving on income tax and potentially GST. Our Novated Lease Calculator helps you estimate monthly costs based on current Australian tax rates, including updates for electric vehicles in 2025.
Expert Tip
For 2025, the FBT exemption threshold for electric vehicles has increased to $91,387, making EV novated leases more attractive than ever. Our calculator automatically factors in these changes to give you the most accurate estimates.
Key Benefits of Novated Leasing
- Tax savings through salary packaging (typically 20-30% reduction in take-home pay)
- FBT exemptions for EVs under $91,387 (2025 threshold)
- Bundled running costs like fuel, maintenance, insurance, and registration
- Potential GST savings on vehicle purchase and running costs
- Access to fleet purchasing discounts
“Using the Novated Lease Calculator helped me save over $8,000 annually on my Tesla Model 3. The tax savings were even better than I expected!”
– Sarah T., Financial Analyst, SydneyFor more details, explore external novated lease resources like the SG Fleet Novated Lease Calculator or the Toyota Novated Lease Calculator.
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Novated Lease Calculator Results
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Cost Breakdown from Novated Lease Calculator
Novated Lease vs. Traditional Car Loan Comparison
| Factor | Novated Lease | Traditional Car Loan |
|---|---|---|
| Tax Benefits | Significant (pre-tax payments) | None (post-tax payments) |
| Running Costs | Bundled in lease payment | Separate expenses |
| Interest Rates | Lower (fleet discounts) | Higher (retail rates) |
| Flexibility | Limited (fixed term) | Higher (can refinance) |
| End of Term | Trade-in, refinance, or pay balloon | Full ownership |
Financial Analysis
Based on our analysis, a novated lease typically saves professionals between $3,000-$10,000 annually compared to a traditional car loan, depending on their tax bracket and vehicle choice. The savings are even greater for electric vehicles due to FBT exemptions.
Frequently Asked Questions About Novated Leasing
The savings depend on your tax bracket and the vehicle price. Typically, you can save between 20-30% on the total cost of owning and running a car. For someone in the 32.5% tax bracket with a $45,000 car, this could mean annual savings of $3,000-$5,000.
Novated leases are less flexible than traditional car loans. If you change jobs, you’ll need to arrange to continue the lease. There may also be restrictions on vehicle choice and customization. However, for most professionals who plan to stay in their job for the lease term, the benefits outweigh these limitations.
At the end of the lease term, you typically have three options: pay the balloon payment and own the car outright, trade the car in for a new lease, or refinance the balloon payment. Our calculator helps you understand these options by showing the balloon payment amount.
The 2025 increase of the FBT exemption threshold to $91,387 has made electric vehicles more attractive than ever for novated leasing. This means you can salary sacrifice an EV under this value without paying Fringe Benefits Tax, potentially saving thousands more compared to a conventional vehicle.
Did You Know?
Novated leasing has been available in Australia for over 30 years and is used by more than 200,000 professionals nationwide to save on their vehicle costs.
Market Trend
EV novated leases have increased by 45% in 2025 due to the expanded FBT exemption and rising fuel costs. Our calculator shows potential savings of up to $12,000 annually for eligible EVs.
