Novated lease

Compare buying a car with a traditional loan versus a novated lease. See how salary packaging reduces your taxable income and your after-tax cost over the term.

Vehicle & your income

Car price — drive-away ($)

Your annual taxable income ($)

We use this to estimate your marginal tax rate (incl. Medicare levy) for the novated lease tax benefit.

Traditional car loan

Interest rate (% p.a.)

Loan term (years)

Novated lease

Lease interest rate (% p.a.)

Lease term (years)

Residual (% of car value at end)

ATO minimum residuals apply; 5-year car lease is often around 28%. Check your quote.

Monthly running costs ($) — optional

Fuel, rego, insurance, maintenance packaged in the lease (also salary sacrificed).

Comparison results

Traditional loan

— Monthly repayment

— Total interest

— Total cost (after-tax)

Novated lease

— Monthly deduction (lease + running)

— Tax saving over term

— Residual (balloon) at end

— Total after-tax cost

This is an estimate only, not personal advice. Omission of data or unique variable will have a considerable influence on outcomes. Consider speaking to a licensed adviser for a plan tailored to you where personal variables will be confirmed by supporting documents specific to your preferences and circumstances