🇦🇺 Australian Treasury Electric Car Discount (0% FBT Exemption)
Novated Lease & EV Tax Savings Calculator
Calculate your pre-tax salary sacrifice savings on an Electric Vehicle (EV) under the Australian Government's 0% FBT exemption, including GST savings on purchase price and running costs.
Vehicle & Salary Settings
$
Fuel-Efficient LCT Threshold (2024-25): $91,387 Under LCT (FBT Exempt)
Included Running Costs (100% Pre-Tax)
✓ Charging / Power ✓ Rego & CTP ✓ Comprehensive Ins ✓ Maintenance ✓ Replacement Tyres ✓ GST Exempt
Total Annual Tax Saved
$0/yr
Net Take-Home Reduction: $0/fn • Over Lease Term: $0 Saved
Upfront GST Saved on Car
$0
FBT Liability
$0 (Exempt)
Novated Lease Financial Comparison
Vehicle Base Price (Ex GST) $0
Upfront GST Claimed by Employer -$0
Annual Pre-Tax Salary Sacrifice (Car + Running) $0/yr
Annual Income Tax & Medicare Savings +$0/yr
Effective Take-Home Reduction (Fortnightly) $0/fn
Total Value Saved Compared to Outright Cash Loan $0
⚡ Electric Car Discount Act (0% FBT)
The Australian Government's Treasury Laws Amendment eliminates Fringe Benefits Tax (FBT) on electric cars:
- Eligible Vehicles: Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs up to 1 April 2025).
- Price Ceiling: Retail price must be below the fuel-efficient Luxury Car Tax (LCT) threshold ($91,387 in 2024–25).
- Zero Post-Tax ECM: Unlike petrol cars, no employee contribution method (ECM) post-tax split is required; 100% of lease and running costs come from pre-tax salary.
🛡️ Residual Value (Balloon Payment)
Under ATO guidelines (IT 28), novated leases require a statutory minimum residual value payable at the end of the term:
- 1 Year: 65.63% residual.
- 3 Years: 46.88% residual.
- 5 Years: 28.13% residual.
- At the end of the lease, you can pay out the residual to own the car tax-free, refinance it, or trade it in for a new EV.
📊 Australian Statutory Payroll & Tax Breakdown Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (AUD) |
|---|---|
| Primary Net / Statutory Payable Amount | $0.00 |
MS
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Australian Taxation Office (ATO) & Fair Work Specialist
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.