Novated Leases — An Independent Australian Guide & Calculator

👉 Open the Novated Lease Calculator

Independent • Evidence-driven • Practical • Unaffiliated

Is it worth it? "Tax saving" is misleading $21,320 "savings" → $5,591 net loss

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Many people dismiss EV novated leases for the wrong reasons, based on outdated rules of thumb rather than current rules.

Many people sign up for novated leases for the wrong reasons, based on misleading sales pitches rather than a clear understanding of costs, risks, and trade‑offs.

This site is written for both. The calculator is one of very few that models true net savings — not the misleading "tax saved" figure most providers advertise. The accompanying articles cover the pros and cons in depth, written by someone with no affiliation with any leasing company and no financial interest in your decision.

• New here?

  Start with the fundamentals.

  • What is a novated lease — really?
  • Is a novated lease right for me?
  • Why EV and ICE novated leases are different products
  • Why "tax saved" is the wrong way to evaluate a novated lease

• Got a quote?

  Cut through the numbers.

  • Open the calculator
  • How to use the novated lease calculator
  • How to read a novated lease quote
  • Why novated lease interest rates look high
  • Real example: $21,320 "savings" → $5,591 net loss
  • Real example: $81k Tesla cost-neutral to keeping a $25k Mazda

• Going deeper?

  36 articles across 5 topic areas. Use the article browser below or the search bar.

  • Fundamentals – core concepts
  • Mechanisms explained — how the maths actually works
  • Running costs & claiming — budgets, GST, EV charging, insurance
  • Risks & exit strategies — what can go wrong and how to protect yourself
  • Special cases & policy — childcare subsidy, NFP caps, super, EV exemption

Browse all 36 articles ▸

Fundamentals

• What is a novated lease — really?
• Why EV and ICE novated leases are different products
• Is a novated lease right for me?
• How to read a novated lease quote
• How to use the calculator
• We reviewed 20 novated lease calculators
• Glossary of terms

Mechanisms explained

• Why "tax saved" is the wrong metric
• $21,320 "savings" → $5,591 net loss (worked example)
• $81k Tesla turned out cost-neutral to keeping a $25k Mazda New
• Why novated lease interest rates look high
• Why effective interest rates are higher on short leases and cheaper cars New
• FBT, RFBA, and adjusted taxable income explained
• All about residual values
• You don't have to sell above residual value
• The "$70k is too low for savings" myth — corrected New

Running costs & claiming

• Running cost budgets are a "piggy bank"
• The ATO EV home charging shortcut (5.47c/km from 1 Apr 2026) Updated
• Failure to pass on GST savings
• Insurance premium vs excess

Risks & exit strategies

• Overview of risks and exit strategies
• Lease length, residuals, and risk
• What happens if a novated lease ends early
• Early termination payouts: how bad can it get?
• Risk mitigation strategies
• Think like a gambler: why the same novated lease can be brilliant for one person and terrible for another New

Special cases & policy

• Novated leases and childcare subsidy
• Don't double-count the NFP FBT cap
• Super guarantee and payroll risks
• NSW Health's "Employer Share"
• EV FBT exemption review timing
• Why novated leasing is poorly regulated

About

• Who I am and how I became "that novated lease guy"
• History of the novated lease calculator
• Disclaimer

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