Our novated lease calculator is easy to use and provides a comprehensive breakdown of costs. It uses either the statutory formula method or the operating cost method for calculating FBT.
With a novated lease, you can salary package your car and claim budgeted running costs as tax deductions. These include vehicle insurance, roadside assistance and petrol. For more information about the online novated lease FBT calculator, click here.
Calculate your FBT liability
Fringe Benefits Tax (FBT) is a tax that the Australian Tax Office generates to overcome past deficiencies in income tax law that enabled employers to provide non-cash employee benefits. When salary packaging a vehicle with a novated lease, you will pay FBT on the purchase price of the car as well as all operating costs.
In the most common novated lease arrangement, the purchase price of the vehicle and administration fees are calculated into the lease repayments that your employer takes out of your pre-tax salary. Running costs such as fuel, services, registration and car insurance are claimed as unreimbursed expenses with the novated lease.
The Employee Contribution Method (ECM) allows you to reduce your FBT liability further by contributing from post-tax income towards the vehicle’s running costs. If this contribution equals or exceeds the car’s taxable value, you will have no reportable FBT payments at year-end. This is a highly tax-efficient way to package a vehicle.
Calculate your monthly installments
A novated lease is a cost and tax-effective way of financing your next car. It involves a regular employee contribution from your post-tax salary to cover part of the lease and budgeted running costs, flattening out the peaks and troughs of vehicle expenses. For more information about the online novated lease FBT calculator, click here.
This allows you to offset any FBT payable, reducing your reportable fringe benefit (FBT) and overall tax bill for the year. Most salary packaging companies will provide a projection of the savings you can make from salary packaging versus. You are purchasing the exact vehicle outright. However, you must also understand your actual FBT and income tax bill.
Use our easy-to-use novated lease calculator to crunch the numbers and determine what’s affordable for you before applying with Savvy. You won’t need to enter personal information to use the calculator, and you can apply for a novated lease online fast! Savvy takes care of the rest. We will arrange services and deductions and find the best-novated lease offer to suit your circumstances.
Calculate your residual value
If you are thinking about a novated lease, it’s essential to understand the residual value requirements. This will help you determine how much your salary can be paid towards the car. The calculator below will provide you with this information.
The calculator will also calculate the GST amount for each lease instalment, employee contribution and FBT tax savings. You can also check how much you will save with a novated lease compared to a traditional car loan.
Novated leasing allows you to claim deductions for running costs, including petrol, tyres, scheduled services and registration. This is a significant difference from a car loan, where these expenses are not claimed and add to your taxable income.
The novated lease calculator will also consider employee contributions, FBT tax savings, as well as the total cost of the car, including purchase price and finance charges. The calculator will then show you the total lease cost to calculate your balloon payment. For more information about the online novated lease FBT calculator, click here.
A novated lease (salary packaging) allows you to package your car finance and budgeted vehicle running costs into one monthly payment on payday. This includes things like fuel, tyres, registration, insurance and servicing. It can also save you a lot in tax as the payments are made from pre-tax income, reducing your taxable income.
A vital component of a novated lease is the residual value, sometimes called the balloon payment. This amount you must pay at the end of your lease term is calculated based on ATO guidelines.
Novated leases are a great way to get the car you want without paying the total price upfront. However, it’s essential to consider the residual value and how you’ll manage it at the end of your novated lease term. Have a plan and speak with a qualified financial planner before you start negotiating your novated lease terms!