A novated lease calculator is one of the most useful tools for Australian employees looking to understand their car finance options. It helps estimate repayments, running costs, and potential savings from salary packaging a vehicle. But to make the most of it, it’s important to understand how Australian tax rules, Fringe Benefits Tax (FBT), and GST savings influence the final figures.
At Fingo, we help employees and employers navigate these details with clarity so you can make informed decisions about your next vehicle.
What Is a Novated Lease?
A novated lease is a three-way agreement between you, your employer, and a finance provider. Under this arrangement, your employer makes lease payments on your behalf using a combination of pre-tax and post-tax income. This structure can reduce your taxable income, making it one of the most tax-effective ways to finance a car in Australia.
If you’re wondering how does a novated lease work, it essentially allows you to include vehicle expenses like fuel, insurance, registration, and servicing into one regular payment, deducted from your salary.
Why the Australian Context Matters
Australian salary packaging rules play a major role in how a novated lease calculator determines your potential savings. Here are a few key factors the calculator takes into account:
- Fringe Benefits Tax (FBT): The calculator estimates FBT liability based on the type of vehicle, its value, and how it’s used. Some electric vehicles are FBT-exempt under current Australian rules, making them highly attractive for salary packaging.
- GST Savings: Employees don’t pay GST on the purchase price of a car financed under a novated lease, as employers can typically claim it back.
- Running Costs: Ongoing expenses like servicing, tyres, fuel/charging, and insurance can be bundled into your pre-tax deductions.
- Employer Contributions: Employers may choose to cover certain costs or manage lease administration, further improving your after-tax savings.
Using the Novated Lease Calculator
Fingo’s novated car lease calculator is designed specifically for Australian conditions. By entering your salary, vehicle price, lease term, and expected running costs, you’ll get a clear picture of your estimated repayments.
The calculator gives you an instant breakdown of:
- Estimated take-home pay difference
- Packaged running cost inclusions
- Total lease value and residual amount
This helps you budget with accuracy and compare whether a novated lease is more cost-effective than a traditional car loan.
Benefits of Using a Novated Lease Calculator
Using an Australian-specific novated lease calculator offers several key advantages:
- Understand potential savings before committing
- Compare different lease terms easily
- Plan your budget around salary deductions
- Evaluate if packaging an electric vehicle could reduce your tax further
Why Choose Fingo
Fingo specialises in transparent, flexible novated leasing solutions that work for individuals, employers, and businesses across Australia. Our tools are designed to simplify the process and help you make sense of the financial side of car ownership.
If you want to see how much you could save, try the Novated Lease Calculator Australia today. It’s quick, accurate, and built for Australian drivers.