Save $4,000 Per Year with a Novated Lease
Which car and salary combinations save you $4,000 or more per year through a novated lease? Full table below.
Quick Answer
- Target Saving
- $4,000/year
- Cars That Qualify
- 12
- Lowest Salary Required
- $50K
- Best Option
- Kia EV6
Car & Salary Combos That Save $4,000+/Year
| Car | Type | Min Salary | Annual Saving | 5-Year Total |
|---|---|---|---|---|
| Kia EV6 | EV | $50K | $4,968.82 | $24,844.11 |
| Tesla Model Y | EV | $50K | $4,882.58 | $24,412.91 |
| Hyundai Ioniq 5 | EV | $50K | $4,698.45 | $23,492.27 |
| Tesla Model 3 | EV | $50K | $4,295.76 | $21,478.82 |
| Kia Niro EV | EV | $50K | $4,228.55 | $21,142.75 |
| Hyundai Kona EV | EV | $50K | $4,192.91 | $20,964.55 |
| BYD Seal | EV | $50K | $4,115.11 | $20,575.55 |
| Volvo EX30 | EV | $60K | $5,132.27 | $25,661.35 |
| BYD Atto 3 | EV | $60K | $4,805.86 | $24,029.28 |
| MG ZS EV | EV | $60K | $4,447.18 | $22,235.89 |
| BYD Dolphin | EV | $60K | $4,012.05 | $20,060.25 |
| MG 4 | EV | $150K | $4,705.63 | $23,528.15 |
Verdict
The easiest way to save $4,000+ per year is the Kia EV6 on a $50K salary, delivering $4,968.82 annually. The FBT exemption is key to hitting this target.
Related Pages
Frequently Asked Questions
Which cars save $4,000 per year on a novated lease?
Several car and salary combinations can hit $4,000/year in savings. EVs reach this target at lower salaries because of the FBT exemption.
What salary do I need to save $4,000 per year?
It depends on the car. Cheaper EVs like the BYD Dolphin can hit $4,000/year at lower salaries, while more expensive cars need higher incomes.
Is $4,000 per year a realistic novated lease saving?
Yes, very achievable — the table below shows exactly which combinations work.
How are novated lease savings calculated?
Savings come from three sources: income tax reduction (your marginal rate on the lease amount), GST savings (1/11th of the car price), and FBT exemption for eligible EVs. We subtract any FBT payable for non-exempt vehicles.
Should I novated lease to maximise tax savings?
If you are a PAYG employee earning over $45,000, novated leasing almost always saves money compared to buying outright or financing with a car loan — especially for FBT-exempt EVs.
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.