A novated lease is a way of paying for a car through your employer, using pre-tax salary. For electric vehicles specifically, it’s become one of the most tax-efficient ways to get behind the wheel, thanks to the federal FBT exemption that came into effect in 2022.
The savings come from two places:
- GST on the purchase price. Your novated lease provider buys the car as a business transaction and claims back the GST, passing that saving directly to you.
- Income tax reduction. Because your lease payments come out of pre-tax salary, your taxable income drops and you pay less income tax every month.
With a petrol car on a novated lease, much of that saving gets eaten up by Fringe Benefits Tax. With an eligible EV, that FBT is zero. The full benefit stays in your pocket.
Most people have heard a novated lease can save you money. Fewer have seen exactly how much, broken down by their own salary, their own state, and the car they’re actually considering.
That’s what we built the EV Novated Lease Calculator for.
To give you a sense of the numbers: based on a $100,000 salary in WA, driving 15,000km per year, a Zeekr 7X on a novated lease can save an estimated $5,093 a year in income tax, plus over $1,200 a year in lower running costs compared to a petrol car. Your numbers will be different. The calculator works them out for you based on your own inputs.
Why the Novated Lease Question Is Harder Than It Looks
The concept sounds simple enough: your employer deducts lease payments from your pre-tax salary, you pay less income tax, and the car costs you less than if you’d bought it outright. But the actual calculation involves your salary bracket, your state’s stamp duty rate, the car’s residual value, GST on the purchase price, your current electricity rate, how many kilometres you drive, and whether your employer is passing through the FBT exemption correctly. That’s why we built the calculator to show you the full picture, not just a headline monthly figure.
What the Calculator Actually Does
You enter your salary, your postcode, your current car costs, and how you drive. The calculator then shows you, side by side, what you’re paying now versus what you’d pay under a novated lease on four EV models: the Zeekr 7X RWD, the Zeekr 7X Long Range RWD, the Zeekr 7X Performance AWD, and the BYD Sealion 7 Performance AWD.
For each car, you get:
- Monthly total cost covering the lease and running costs
- Annual income tax savings under the FBT exemption
- Drive-away total for your state
- Total annual running costs based on your electricity price, fuel price and distance
- 5-year net financial position so you can compare the full cost of each option
You can also toggle between 3, 4, and 5-year lease terms and adjust any of the inputs (electricity rate, lease rate, kilometres per year) to see how the numbers shift.
The FBT Exemption: What It Means in Practice
Since July 2022, eligible battery electric vehicles under the luxury car tax threshold ($91,661 in FY2026-27) have been exempt from Fringe Benefits Tax when accessed through a novated lease. That exemption is not small. For someone on $100,000, it can mean thousands of dollars in annual tax savings depending on the car, because the ATO effectively stops treating the vehicle as a taxable benefit.
This is why the monthly figure for a novated EV can look almost too good. It is not a trick. It’s the FBT exemption working as intended. But the numbers only hold if your employer and lease provider are set up correctly, which is worth confirming before you sign anything.
One thing worth knowing: the federal government announced in May 2026 that the FBT exemption will be wound back in stages from April 2027. If you’re considering an EV novated lease, the full exemption is available now but won’t be around indefinitely. For a full breakdown of the changes and what they mean, read our Electric Car FBT Exemption Explained guide.
Why These Cars?
We used the Zeekr 7X range and the BYD Sealion 7 Performance as examples because they represent good value in the current Australian market and sit comfortably under the FBT threshold. The tool is really about your inputs though: your salary, your state, your costs. The car examples are a starting point, not a sales pitch.
Worth Knowing Before You Use It
The calculator uses standard Australian tax brackets (FY2026-27) and stamp duty rates for your state, along with estimated running costs based on real-world driving data for the cars listed. It does not model every possible scenario. If you have a salary sacrifice arrangement already in place, a company car policy, or a non-standard lease structure, your actual figures will differ.
This is for illustration, not financial advice. Run your personalised numbers with our EV Novated Lease Calculator first, then take the downloadable PDF to a novated lease provider for a proper quote.
What Comes Next?
If the numbers work out, you’ll want somewhere to charge. A home EV charger paired with rooftop solar means you’re charging for effectively nothing during the day. For anyone putting on 15,000km+ per year, that difference adds up fast. We can get you quotes from local solar and charger installers as well.
This calculator is for general illustrative purposes only and does not constitute financial, tax, or legal advice. Figures are based on standard FY2026-27 Australian tax brackets and the assumptions stated within the tool. Actual savings depend on your salary packaging arrangement, vehicle pricing, state duties, insurance, and running costs. Confirm details with your employer and a qualified novated lease provider before making any financial decisions. Solar Market does not provide financial advice and is not a licensed financial adviser.
