EV Novated Lease vs Hybrid Novated Lease vs EV Outright

Compare the net present cost of financing a car through a novated lease against buying an EV outright with your own cash.

Your details

Drives electricity/fuel and tyre costs below
% p.a., amortised over the term
% p.a. — opportunity cost of paying cash, and the discount rate used to compare all options

EV running costs

c/km — ATO EV home charging shortcut, PCG 2024/2 (from 1 Apr 2026)
c/km — EVs are heavier and typically wear tyres faster than the equivalent hybrid
$/year — EV premiums often run higher due to battery/repair costs
$/year — varies by state
$/year — EVs have no oil changes, fewer moving parts
EV total running cost-

Hybrid running costs

L/100km — combined cycle, check the specific model
$/litre
c/km — based on ~$850/set lasting ~35,000km
$/year
$/year — varies by state
$/year
Hybrid total running cost-

Other assumptions

The car's Luxury Car Tax value, not its drive-away price — generally the GST-inclusive price excluding first registration and CTP. Take this from the dealer's LCT declaration; it's usually a little below drive-away price.
EV is FBT-exempt only if its LCT value (above) is under this
Caps the GST credit the financier can claim to 1/11th of this amount
Without the ECM, FBT is calculated at 20% of base value, grossed up (2.0802) and taxed at 47% — this is a materially more expensive outcome and can be shown by unchecking the box above.

Net present cost over the term

Assumptions & general advice warning: Figures are illustrative only and do not constitute financial, tax or legal advice. Novated lease repayments are amortised at the rate shown against the ATO's minimum residual value for the term selected (1yr 65.63%, 2yr 56.25%, 3yr 46.88%, 4yr 37.50%, 5yr 28.13%). The amount financed is the GST-exclusive price (the financier claims the input tax credit on purchase, capped at 1/11th of the GST car limit shown above), while the residual is set as the ATO minimum percentage of the full GST-inclusive price; paying out that residual to own the car is a personal purchase from the financier, so GST is added back on top and can't be claimed back by an individual. Running costs are packaged pre-tax at their GST-exclusive amount (rego/CTP excepted, as it carries no GST) for the two novated options, but at the full retail price for the EV bought outright, since an individual can't claim input tax credits. The Employee Contribution Method (ECM), where used, is applied before the pre-tax salary sacrifice calculation — only the amount remaining after the ECM contribution receives the tax benefit. EV FBT exemption eligibility is tested against the vehicle's LCT value (not its drive-away price) against the 2026–27 fuel-efficient threshold of $91,661. Income tax uses 2026–27 resident marginal rates (including the 15% second bracket effective 1 July 2026) plus a flat 2% Medicare Levy, and excludes the Medicare Levy Surcharge, HECS-HELP repayments and the Low Income Tax Offset. FBT on the hybrid is calculated using the statutory formula method (20% of the drive-away price as a proxy for base value) with a Type 1 gross-up of 2.0802 at the 47% FBT rate; running costs are assumed to be salary packaged pre-tax alongside lease repayments. All cash flows are discounted to a present value at the after-tax investment return entered above so the three options can be compared on a like-for-like basis. This calculator does not consider stamp duty, insurance underwriting, resale value at market versus residual, provider fees/margins, or your personal cash flow position. Please speak with your financial adviser before acting on any of these figures.
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