The pre-tax portion of a novated lease reduces your taxable income. This is the actual dollar saving that produces — matched to your employer's sector, including the HECS/HELP and Medicare Levy Surcharge impact most calculators skip.
The pre-tax portion reduces your taxable income. This is the actual dollar saving that produces — matched to your employer's sector.
Includes the 2% Medicare levy, resident 2026–27 brackets. Excludes LITO and Medicare levy surcharge thresholds in the base figure — that's modelled separately below.
Reportable fringe benefits are added back to your income for HECS/HELP and Medicare Levy Surcharge purposes, even though they're not added back for income tax. If your ECM contribution doesn't fully zero out the FBT taxable value, packaging can help less than the headline tax saving suggests.
A public hospital employee and a private sector employee can end up with a very different saving on the same car.
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