How we work
How we work out the numbers, and how we make money
Updated
Estimates, not tax advice
Estimate only. General information, not tax advice. Every dollar figure on this site is an estimate from the published rules and the numbers you enter. It does not know your full tax position, your employer’s policy or the terms your provider will offer. Before you sign, confirm the figures with your employer, your novated lease provider or a registered tax agent.
FBT Cliff provides general information only. It does not take your circumstances into account. Check prices, terms and suitability with the provider before you buy or sign up.
What the calculator works out
A novated lease normally clears fringe benefits tax with the employee contribution method: you pay an amount equal to the car’s taxable value from after-tax salary. The exemption makes that taxable value nil, so the whole cost can come from pre-tax salary. The calculator estimates the income tax and Medicare levy that difference is worth to you each year, under three commitment windows.
- Taxable value uses the statutory formula: 20% of the car’s base value a year, less your after-tax contributions. (ATO, checked )
- For commitments from 1 April 2027 the fraction follows the Treasury exposure draft: nil at or under $75,000 until 31 March 2029, 0.15 up to the fuel-efficient luxury car tax limit, and 0.2 above it. (Treasury exposure draft, checked )
- Tax is worked out at 2026–27 resident rates with the 2% Medicare levy, on the top slice of the salary you enter. (ATO, checked )
- The low income tax offset is included. (ATO, checked )
- Reportable amounts use the 1.8868 gross-up rate and the $2,000 reporting threshold. (ATO, checked )
It leaves out lease payments, running costs, GST, provider fees, the operating cost method, the one-third reduction in base value late in a long lease, tax rate changes after 2026–27, the Medicare levy surcharge and income-tested payments. Because it taxes the top slice of your salary, the estimate runs high when packaging the rest of the lease drops you into a lower tax bracket. Figures are rounded to the nearest $10.
Where the car prices come from
Every price is one the maker published on its own Australian website, with a link and the date we read it. We record whether it is a list price before on-road costs, a price with the maker’s own delivery fee, or a drive-away price, because the FBT value is none of them exactly: it includes dealer delivery and options but leaves out registration, stamp duty and CTP. Where a price sits within $3,000 of a line, we say so. Prices change; we re-check them and update the date.
How we make money
FBT Cliff is free to use. Some links on this site are referral links: if you sign up or buy through one, we may earn a commission, at no extra cost to you. Commission never changes which providers we include or the order we list them in. There is no advertising, and no company can pay to be listed, to rank higher or to be reviewed.
A short note sits beside every link to a provider saying so. Links to providers go through an address on this site starting with /go/, which lets us switch a link to a tracked referral in one place and keeps search engines from treating it as an endorsement.
How we list providers
We list Carbar, Maxxia, Oly, RemServ, Smart in alphabetical order. We don’t rank them and we don’t recommend one. Your employer has to agree to a novated lease, and some employers work only with particular providers, so ask your payroll team first. We compare only the 5 providers listed here, not the whole market. Other products may be available that suit you better. Commission will never change the order, the calculator or what we say about a car.
What this site does not do
The consumer lease part of the National Credit Code does not apply to a lease of goods hired by an employee in connection with the employee’s remuneration, which is how novated leases are set up. (National Consumer Credit Protection Act 2009, Schedule 1, s 171(2), checked )
We give tax estimates and point you to providers. We don’t arrange leases, take applications, collect your details or pass them to anyone, and we don’t suggest a particular lease or contract for you.
Corrections
If a price, a rule or a sum is wrong, email hello@fbtcliff.com.au and we will fix it and update the date on the page. When the draft law changes or becomes law, we update the calculator and every page that relies on it.