Novated Lease on an $90,000 Drive-Away EV
What an electric vehicle with a $90,000 drive-away price actually costs on a 3-year novated lease, by salary. On a $120,000 salary it works out to about $1,309 a month — $302 a week — with running costs included and a tax saving of $7,395 a year. Because the car price behind that drive-away is $85,034 — above the $75,000 cap that applies from 1 April 2027 — a lease starting after that date gets a 25% FBT discount rather than the full exemption.
Cost by salary
| Salary | Per week | Per fortnight | Per month | Tax saving / yr |
|---|---|---|---|---|
| $90,000 | $302 | $604 | $1,309 | $7,395 |
| $120,000 | $302 | $604 | $1,309 | $7,395 |
| $150,000 | $282 | $564 | $1,222 | $8,445 |
| $190,000 | $271 | $542 | $1,175 | $9,012 |
| $200,000 | $256 | $511 | $1,108 | $9,812 |
| $220,000 | $236 | $471 | $1,021 | $10,861 |
Enter your own drive-away price and state in the novated lease calculator for an exact figure. These rows use Victorian on-road costs: $3,707 stamp duty on an $90,000 drive-away, plus about $1,260 for registration, CTP and plates. Stamp duty varies a lot by state — the same car attracts roughly $1,200 in Queensland and $3,900 in Western Australia.
The cost falls as salary rises because the lease is packaged from pre-tax income, so a higher marginal tax rate makes each pre-tax dollar save more. Note that $90,000 and $120,000 give the same figure: both sit inside the 30 per cent bracket, so the saving per dollar is identical.
EV vs petrol, and what changes in 2029
| Salary | EV / month | Petrol / month | EV from Apr 2029 |
|---|---|---|---|
| $90,000 | $1,309 | $1,763 | $1,650 |
| $120,000 | $1,309 | $1,763 | $1,650 |
| $150,000 | $1,222 | $1,727 | $1,589 |
| $190,000 | $1,175 | $1,727 | $1,589 |
| $200,000 | $1,108 | $1,687 | $1,523 |
| $220,000 | $1,021 | $1,687 | $1,520 |
An FBT-exempt EV is packaged entirely from pre-tax salary. A petrol car at the same price needs post-tax contributions (the Employee Contribution Method) to cancel out Fringe Benefits Tax, which is why it costs more — $1,763 a month against $1,309 on a $120,000 salary. From 1 April 2029 the full exemption ends for every eligible EV and is replaced by a 25 per cent FBT discount, lifting the cost to about $1,650 a month. Announced 5 May 2026 and not yet legislated.
Assumptions used
Drive-away price $90,000 in Victoria, which works back to about $85,034 for the car after $3,707 stamp duty and roughly $1,260 registration, CTP and plates. 3-year term at 7 per cent interest, no establishment fee and no lease management fee. Annual running costs of $3,900: $600 charging, $1,800 comprehensive insurance, $900 registration and CTP, and $600 tyres and maintenance. Amount financed $83,647 after the GST credit, with a residual of $39,214 owing at the end of the term. Figures use 2026–27 tax rates and assume an Australian tax resident with no HECS-HELP debt.
Frequently asked questions
How much does an $90,000 drive-away EV cost on a novated lease?
On a $120,000 salary it is about $1,309 a month — $302 a week — over a 3-year term, with charging, insurance, registration and maintenance included and a tax saving of $7,395 a year. On $220,000 the same car costs about $1,021 a month because a higher marginal rate makes each pre-tax dollar go further.
Why do I enter the drive-away price and not the list price?
Because the drive-away price is the figure on your dealer quote. The calculator works backwards from it using your state's stamp duty rules to find the car price, which is what the GST credit and the FBT threshold are actually based on. An $90,000 drive-away in Victoria means about $85,034 for the car plus $3,707 stamp duty and roughly $1,260 for registration, CTP and plates.
Is an $90,000 drive-away EV still FBT-exempt after April 2027?
No. The $75,000 cap from 1 April 2027 applies to the car price excluding on-road costs. An $90,000 drive-away works out to about $85,034 for the car, which is over the cap, so a lease starting on or after 1 April 2027 gets a 25 per cent FBT discount instead of the full exemption. Start the lease before that date and the full exemption applies for the whole term.
Why is the cost the same on $90,000 and $120,000?
Both salaries sit inside the same 30 per cent marginal tax bracket, so every pre-tax dollar saves the same amount of tax. The cost only drops once a higher bracket is reached — which is why the figure falls again at $150,000 and $200,000.
What is the residual owing at the end?
$39,214. That is the ATO minimum residual of 46.88 per cent of the amount financed ($83,647) over a 3-year term. You pay it to own the car outright, or you can re-lease or sell the car to cover it.
Run your own numbers
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