Novated Lease & FBT Calculator (EV Exemption)

A novated lease packages vehicle finance and running costs out of pre-tax salary, reducing taxable income. The private-use benefit normally attracts Fringe Benefits Tax under the statutory formula — 20% of the base value, grossed up at 2.0802 and taxed at 47%. Eligible zero and low emissions vehicles first held after 1 July 2022 and priced under the luxury car tax threshold for fuel-efficient vehicles are fully FBT exempt, which is what makes EV novated leases so much cheaper. Worked example: for a $55,000 car that is not exempt, the statutory FBT is 55,000 × 20% × 2.0802 × 47% = about $10,755 a year, which is the cost that is normally recovered from the employee. For an eligible electric vehicle the FBT is nil, so the same lease costs far less. Eligibility depends on the vehicle, the date it was first held and used, and the luxury car tax threshold for fuel-efficient vehicles, so confirm with the lease provider and your payroll team.