-
Compare a novated lease to a car loan
-
Here's a few novated lease examples to help you understand how it lets you save. We compare annual costs of a novated lease to paying for the same car with after-tax salary.
See the reductions in taxable income and tax payable, plus the mix of pre and post tax contributions that eliminate any FBT liability.
With the introduction of FBT exemptions on eligible electric vehicles, the savings can be even greater.
Same car, same price, big savings with LeasePlan's novated option.
NOTE: ECM (mix of pre and post tax) benefits all except +$180k salaries. Examples do not factor in other pre-tax impacts (e.g. childcare payments, benefits, etc.).
See how a novated lease can save you money
-
Novated Benefit
Novated Post Tax Annual Salary $60,000 $60,000 Pre Tax Vehicle Cost -$7,593.13 $0.00 Taxable Income $52,406.87 $60,000 Tax Payable -$9,627.09 -$12,247.00 Post Tax Vehicle Cost $0.00 -$16,307.00 Post Tax Employee Contribution -$7,954.70 $0.00 Annual Disposable Income $34,825.08 $31,446.00 Novated Advantage $3,379.00 $0.00 Adam
Adam is a 26 year-old painter, employed by a building company, earning $60,000 a year. He has Ford Ranger Ute as it is handy in his job. He is leasing for three years, at 20,000km/yr. He is $3379.00 per annum better off.
-
Novated Benefit
Novated Post Tax Annual Salary $90,000 $90,000 Pre Tax Vehicle Cost -$6,158.90 $0.00 Taxable Income $83,841.10 $90,000 Tax Payable -$20,644.00 -$23,047.00 Post Tax Vehicle Cost $0.00 -$12,936.96 Post Tax Employee Contribution -$6,162.00 $0.00 Annual Disposable Income $57,035.10 $54,016.04 Novated Advantage $3,019.00 $0.00 Lisa
Lisa is a 44 year-old Systems Architect with an IT company, earning $90,000 a year. The Mazda CX5 is the perfect vehicle for her mix of work and private needs. She is leasing for three years, at 15,000km/yr. She is $3019 per annum better off.
-
Novated Benefit
Novated Post Tax Annual Salary $70,000 $70,000 Pre Tax Vehicle Cost -$5,348.29 $0.00 Taxable Income $64,651.71 $70,000 Tax Payable -$13,851.61 -$15,697.00 Post Tax Vehicle Cost $0.00 -$9,914.00 Post Tax Employee Contribution -$4,031.00 $0.00 Annual Disposable Income $46,769.10 $44,389.00 Novated Advantage $2,380.10 $0.00 Mark
Mark is a 32 year-old Accountant, employed by a finance company and earning $70,000 a year. He has a Hyundai i30 which suits his low mileage and inner city driving needs. He is leasing for two years, at 8,000km/yr. He is $2,380.10 per annum better off.
-
Try it out with your own numbers
Get a better understanding of how it works and how much money you can save with our online calculator.
