Novated Lease Savings on $150K — with HECS Debt
Novated lease savings breakdown for a $150K salary with HECS debt. See how your situation affects the numbers.
HECS Impact on $150K Salary
On $150K, your compulsory HECS repayment rate is 8.5%, which means $12,750.00 per year goes to repaying your HECS debt.
A novated lease reduces your repayment income, which can push you into a lower HECS repayment bracket. This creates an additional saving on top of the standard novated lease tax benefit.
| Without Lease | With Lease | HECS Saving | |
|---|---|---|---|
| Repayment Income | $150,000.00 | $133,152.00 | |
| HECS Rate | 8.5% | 7.5% | |
| Annual HECS Payment | $12,750.00 | $9,986.40 | $2,763.60 |
Top 5 Cars to Novated Lease on $150K
| Rank | Car | Price | Fortnightly | Annual Saving | 5-Year Total |
|---|---|---|---|---|---|
| #1 | Kia EV6 | $67,990.00 | $648.00 | $7,677.54 | $38,387.71 |
| #2 | Tesla Model Y | $65,900.00 | $637.69 | $7,553.78 | $37,768.91 |
| #3 | Hyundai Ioniq 5 | $63,000.00 | $609.62 | $7,267.45 | $36,337.27 |
| #4 | Tesla Model 3 | $55,900.00 | $551.15 | $6,605.06 | $33,025.32 |
| #5 | Kia Niro EV | $55,490.00 | $538.38 | $6,468.13 | $32,340.65 |
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Frequently Asked Questions
How does HECS debt affect novated lease savings on $150K?
HECS repayments are based on your repayment income. A novated lease reduces your taxable income, which can reduce or eliminate your compulsory HECS repayment, creating an additional saving.
What are the best cars to novated lease on $150K?
EVs offer the best value due to FBT exemption. The BYD Dolphin, MG 4, and BYD Atto 3 are top picks for value, while the Tesla Model Y and Hyundai Ioniq 5 are best for those wanting premium features.
Is novated leasing worth it on $150K?
Absolutely. On $150K your marginal tax rate is 37% (plus 2% Medicare), so every dollar of pre-tax lease payment saves you 37% in tax.
Can I novated lease an EV and a petrol car?
You can novated lease any car, but EVs priced under $91,387 are FBT exempt, making them significantly cheaper to lease. A petrol car will have FBT added, reducing the saving.
What happens if I change jobs during a novated lease?
The lease transfers to your new employer. If your new employer does not offer novated leasing, you can continue making payments directly, though you lose the pre-tax benefit until you find an employer who does.
Want exact numbers for your situation?
Use our full novated lease calculator with your exact salary, car price, and lease term.
Open Novated Lease CalculatorEstimates based on 2025-26 Australian tax rates. Actual savings depend on your employer arrangement, residual value, and exact running costs. Car prices are drive-away estimates and may vary by dealer. This is general information only, not financial advice. Consult a financial adviser for personal guidance.