Novated Leases — A Practical Reference Guide & Calculator

👉 Open the Novated Lease Calculator

Independent • Evidence-driven • Practical • Unaffiliated

Suggested Reading: Is a novated lease worth it?  ·  Why "tax saving" is misleading  ·  $21,320 “savings” → $5,591 net loss (worked example)

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This site brings together an independent Australian novated lease calculator and a structured, practical reference guide.

It grew out of repeatedly analysing quotes, clarifying misconceptions, and responding to misleading claims in public discussions since 2023 — now organised into one coherent, searchable resource. ¹

• Start here

  Key introductions and mental models to get you started.

  • What is a novated lease — really?
  • Why EV and ICE novated leases are functionally different products
  • Is a novated lease right for me?
  • How to read a novated lease quote?
  • How to use the novated lease calculator

• Mechanisms explained

  Understand the financial mechanics behind novated leases.

  • Why “tax saved” is the wrong way to evaluate a novated lease
  • Real-life example: how the marketed "$21,320 savings" is in fact "$5,591 net loss"
  • Why novated lease effective interest rates look high — yet may still work
  • FBT, RFBA, and adjusted taxable income — explained clearly
  • All about residual values
  • You don't have to sell your car above residual value

• Running costs & claiming

  Practical info on managing running costs and claiming benefits.

  • Running cost budgets are a “piggy bank”
  • The ATO 4.2c/km EV charging shortcut — how it actually works
  • Failure to pass on GST savings — an overlooked cost in some novated leases
  • Insurance premium vs excess in a novated lease

• Risks & exit strategies

  What to consider about risks and ending your lease early.

  • Overview of risks and exit strategies
  • Lease length, residuals, and risk: choosing the right duration
  • What happens if a novated lease ends early - redundancy, job transfer, vehicle write-off etc
  • Early termination payouts: how bad can it get?
  • Risk mitigation strategies for early termination risk

• Special cases & policy

  Edge cases and policy insights that affect novated leases.

  • Overview of special cases and policy
  • Novated leases, adjusted taxable income, and childcare subsidy — a deep dive
  • Don’t double count the hospital / NFP FBT cap when judging a novated lease
  • Super guarantee and payroll risks
  • NSW Health’s “Employer Share”: A Special Case in Novated Lease
  • EV FBT exemption review timing — what is known, what is not, and why it matters
  • Why novated leasing is poorly regulated

• About

  More about me, story behind this guide and general disclaimer

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

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Support this independent calculator & guide

This calculator and guide are built and continuously maintained as an independent project.

If it has helped you think more clearly, avoid a costly mistake, or saved you meaningful money, you’re welcome to support its ongoing maintenance and improvements:

• Using my Tesla referral link for a $350 discount if you’re ordering a Tesla, or
• Buying me a cuppa ☕ to help cover hosting, development time, and future improvements.

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1. I used LLM to help synthesise 70 of my old comments into this guide. Everything was checked and rewritten by me to keep my usual style as much as possible, though some LLM-style and infamous em-dash may remain. All contents are mine and there is no machine-hallucination. ↩