Credit One logo

Home Car Finance Novated Lease

Choose Australia’s Best Rated Leasing Broker

Over 1650 Five Star reviews on Google

Car Chattel Mortgage hero banner
5.0 Hero google reviews

Novated Lease

New government rules are designed to help make Electric Vehicles (EVs) more affordable through Novated Leasing. But a big question remains: "How much will this car impact my take-home pay?" A reliable Novated Lease calculator is the key to getting a quick answer. Our Novated Lease calculator can instantly show you how much your take-home pay will be affected by any vehicle's cost, up to $89,332 (the amount where Fringe Benefits Tax no longer applies).

When using any Novated Lease calculator, it's crucial to know what's included and what's not. Some calculators might tweak how they estimate fuel/charging, tire, and maintenance expenses. This can make their quotes seem cheaper initially, but it might actually mean you end up paying more overall. It's really important to understand what's covered in each expense category and how they're calculated.


Charge Allocation (Formerly Fuel Expenses):

In our Novated Lease calculator, we have accounted for a yearly allocation of $750 for charging your vehicle. This allocation can be adjusted before starting the lease or at any point during the lease term based on your usage.


Estimating a tyre budget in a Novated Lease calculator is a bit more intricate due to the varying costs of different types of tyres. For instance, lower profile tyres might be pricier but important to drivers. In our Novated Lease calculator, we determine an average cost for each vehicle category we consider. We then apply this cost to a typical timeframe for changing tyres, and this sets the budget.

(Average cost of a tyre X 4) = Total cost of a set of tyres

Your annual kilometres driven X the lease term in years = Total kilometers

Total kilometers / 35,000 kms (average tyre change period) = Sets of tyres needed

Sets of tyres needed X Cost of the set / lease years = Total annual tyre budget

For example

If Mike drives 15,000 kms per year and is beginning a 5-year lease, with the cost of his tyre set being $850:

15,000 X 5 = 75,000 kms / 35,000 = 2.14 sets of tyres X $850 per set = $1,819 / 5 years = $363.80 per year


While most cars require servicing every 10,000 to 15,000 kms, the service cost depends on your chosen vehicle. However, Electric Vehicles (EVs) generally need less servicing, so we allocate $350 per year.

Registration and Insurance:

Estimates for registration and insurance renewals are based on the type of vehicle you select.


Our finance structure follows a standard novated lease calculation with slight variations. The lease starts two months in arrears, meaning the first two months have $0.00 payments, which are distributed across the remaining lease term. For instance, in a 5-year (60-month) lease, there would be 60 payments, but the 1st and 2nd months are $0.00, followed by 58 payments of $400, for example. This arrangement lets the Salary Packaging company arrange services and deductions before the initial payment is due.

The initial year's Comprehensive Car Insurance can be financed if needed, saving you from an upfront insurance cost. When insurance is due for renewal in 12 months, sending in the renewal notice allows the Salary Packaging provider to cover this using funds from your Novated Lease account.

Residual Value:

The residual value, also known as the balloon payment, is the amount due at lease end. The Australian Taxation Office (ATO) permits car payments through your employer. This setup saves on taxes and is convenient, but for tax reasons, the equity in the vehicle cannot be retained. Hence, the vehicle needs to be paid back based on a realistic market value at lease end.

The good news is, having a residual value makes lease repayments lower during the term, enabling most people to opt for a more expensive car using the lower payment structure.

The residual value is a percentage set by the ATO, influenced by the lease term, with a buffer of around 5% on either side of the required rates.

Loan or Lease:

For many, financing is essential when purchasing a car.

Finance Approval Conditions:

After using our Novated Lease Calculator and ensuring the deduction is manageable for your salary, the next step is getting finance or lease approval. Generally, obtaining approval for a Novated Lease is slightly easier than traditional finance. This is because the financier receives repayments directly from your employer before taxation, enhancing their confidence in loan repayment.

For a pre-approval, click . This approval provides an initial endorsement for your chosen vehicle. It's non-binding, and there's no pressure to use it. The approval strengthens your negotiation position when purchasing. Those prepared to buy with funds in place can request a cash price for immediate delivery.

Protect against the unexpected


Insurance for Business

Speak to our specialists
OneSure Insurance Services logo in white

Meet Our Partners

We are accredited with the most reputable lenders and insurers in Australia giving you a fair choice to compare.

Our Lenders

Yellow stars from Feefo

Great Choice!

Amazing work. They worked amazingly to get me the best choice to suit me.


Feefo logo

2024 Feefo Platinum Trusted Award.

Need a fast tailored approval?

Let us compare them for you

Our finance specialists will save you time and money by comparing 40+ leading lenders to get you bank-beating finance