Save $7,000 Per Year with a Novated Lease
Which car and salary combinations save you $7,000 or more per year through a novated lease? Full table below.
Quick Answer
- Target Saving
- $7,000/year
- Cars That Qualify
- 7
- Lowest Salary Required
- $150K
- Best Option
- Kia EV6
Car & Salary Combos That Save $7,000+/Year
| Car | Type | Min Salary | Annual Saving | 5-Year Total |
|---|---|---|---|---|
| Kia EV6 | EV | $150K | $7,677.54 | $38,387.71 |
| Tesla Model Y | EV | $150K | $7,553.78 | $37,768.91 |
| Hyundai Ioniq 5 | EV | $150K | $7,267.45 | $36,337.27 |
| Tesla Model 3 | EV | $200K | $7,405.06 | $37,025.32 |
| Kia Niro EV | EV | $200K | $7,268.13 | $36,340.65 |
| Hyundai Kona EV | EV | $200K | $7,211.91 | $36,059.55 |
| BYD Seal | EV | $200K | $7,077.33 | $35,386.63 |
Verdict
The easiest way to save $7,000+ per year is the Kia EV6 on a $150K salary, delivering $7,677.54 annually. The FBT exemption is key to hitting this target.
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Frequently Asked Questions
Which cars save $7,000 per year on a novated lease?
Several car and salary combinations can hit $7,000/year in savings. EVs reach this target at lower salaries because of the FBT exemption.
What salary do I need to save $7,000 per year?
It depends on the car. Cheaper EVs like the BYD Dolphin can hit $7,000/year at lower salaries, while more expensive cars need higher incomes.
Is $7,000 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.