On this page
Enter the figures from the provider
Ask the provider to separate pre-tax deductions, post-tax contributions, administration costs and the expected reportable fringe benefit. Enter the pre-tax deduction and reportable benefit in the calculator, then subtract any post-tax payments separately when you build the full budget.
A lower taxable salary may reduce income tax. A reportable benefit may still affect HELP, surcharge tiers and other income-tested arrangements. “FBT-exempt” does not mean “ignored for every income test”.
Why a $10,000 salary deduction needs the reported benefit too
Take a fictional $120,000 salary and a quote showing a $10,000 annual pre-tax deduction and $18,868 reportable benefit. With HELP, our model lowers annual cash salary after tax and repayments by $8,539.
Taxable income falls from $119,000 to $109,000, but HELP repayment income becomes $127,868 after the reported benefit is added. The quote’s reportable amount is an input, not something inferred from the lease payment.
This example has no post-tax employee payment or separate fee. It does not establish FBT eligibility, value the vehicle or price the whole lease. Add those quoted costs and the residual before comparing it with a car loan.
| Salary measure | Without quote | With quoted amounts |
|---|---|---|
| Taxable income | $119,000 | $109,000 |
| HELP repayment income | $119,000 | $127,868 |
| Compulsory HELP | $7,421 | $8,751 |
| Annual cash salary after liabilities | $82,789 | $74,251 |
Qualifying electric cars have specific rules
The current exemption can apply to qualifying battery electric and hydrogen fuel cell cars when the conditions are met. Eligibility includes the relevant first-held-and-used date and luxury car tax conditions.
New plug-in hybrid arrangements generally stopped qualifying from 1 April 2025, although certain existing financially binding commitments can continue. Do not assume every electrified vehicle qualifies.
Price the whole commitment
Add finance costs, provider fees, insurance, registration, servicing and the residual payment at the end. Compare the same car, distance and ownership period with an ordinary loan or cash purchase.
Check what happens if you change jobs, take unpaid leave or want to end the lease early. A salary-linked arrangement can be less flexible than the monthly deduction makes it look.
Watch the proposed changes, but do not price them as law
Treasury consulted in September 2026 on proposed changes to electric car fringe benefits tax treatment from April 2027 and later. As at 2 October 2026, those proposals are not treated as enacted rules in this calculator.
If a provider quotes a contract spanning the proposed dates, ask how the agreement would respond to a rule change. The ATO’s current eligibility guidance remains the starting point.
Sources you can check
Sources checked for this page on 3 October 2026. Statistics keep their own measurement dates.
- ATO: electric cars exemption
- Treasury: proposed changes to electric car FBT
- Moneysmart: salary packaging
- ATO: study and training loan repayment thresholds
- ATO: Australian resident income tax rates
- ATO: Medicare levy reduction for low-income earners
- ATO: Medicare levy surcharge thresholds and rates
- Tax Reform Act 2026: standard work deduction
- Official 2026 indexed HELP repayment amounts