Would a novated lease save you money?

A car lease between you, your employer and a finance company. Your employer pays the lease and running costs from your salary before tax, so you pay less income tax, and the GST on the car and running costs is claimed back.

Electric cars under the luxury car tax threshold ($91,661 in 2026–27) are exempt from fringe benefits tax, so the whole cost can come out before tax. For petrol cars, 20% of the car’s price has to come from your take-home pay to avoid FBT.

You owe a residual (balloon) payment at the end, providers charge fees and sometimes higher interest, and if you leave your job the lease comes with you. An EV’s benefit is still reported on your income statement, which can raise HELP repayments and the Medicare levy surcharge.