Site map

• Fundamentals

  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
  • We reviewed 20 novated lease calculators. Only one shows you true savings.
  • Glossary of terms

• 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, the 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