The 2026 Novated Lease Value Index

Your practical guide to whether a novated lease is worth it in 2026

It really all comes down to one question: “Does the total lifetime saving of a novated lease outweigh the cost of financing the car?” 

This Index helps you answer that — using real salary bands, driving habits, fuel types and the current 2026 federal policies. 

With ongoing EV FBT exemptions, high fuel prices, a rising LCT threshold and competitive rates, novated leasing is one of the smarter ways to own a car for everyday employees. 

But it isn’t right for everyone — and knowing the difference can save thousands. 

The ideal employee: Who would a novated lease work best for? 

A novated lease generally works best for:

• Salaried employees earning $70k–$180k+
• Drivers doing 12,000–25,000 km per year
• Anyone wanting to package running costs into one pre-tax payment
• EV buyers targeting the FBT exemption (if under the LCT threshold)
• People who prefer predictable budgeting and no surprise bills
• Drivers considering new or used vehicles with competitive fleet pricing

It may be less ideal for:

• Employees planning to change jobs within 12 months
• Low-km drivers where fuel savings are minimal
• People who already receive employer-provided vehicles
• Drivers wanting to heavily modify their vehicle

Find your driver profile – Based on 2026 figures  

Which driver sounds like you or your family? Explore estimated costs based on different situations below.

Please note, the figures above are estimates. In most cases, your final quote is less than displayed here.

Profile 1: The Everyday Professional – $90k salary, 15,000 km, EV  

Profile 2: The High Mile Hybrid Professional – $120k salary, 20,000 km, EV

Profile 3: The City Slicker Commuter – $80k salary, 12,000 km, Hybrid

Profile 4: The Growing Family – $140k salary, 25,000 km, Petrol SUV

Profile 5: The Tradie on the Move – $95k salary, 20,000 km, Ute 

Profile 6: The SINKs – $160k salary, 15,000 km, Premium ICE vehicle

Profile 7: The Smart Saver – $70k salary, 10,000 km, Small hatch

Profile 8: The Jobsite Jetsetter – $130k salary, 22,000 km, Hybrid Work Ute

Profile 9: The Multi-Kid Mover – $150k salary, 30,000 km, Large family SUV

How 2026 rates are affected by federal policy 

1. EV FBT exemption continues 

Eligible electric vehicles priced under the luxury car tax threshold remain exempt from Fringe Benefits Tax, remaining the single largest saving factor available through novated leasing. 

This means zero fringe benefits tax on qualifying EVs, dramatically reducing your taxable income.‍

2. LCT threshold increases again

For the 2025-2026 financial year, the LCT threshold increases to $91,387, allowing more premium electric vehicles to qualify for FBT exemption. Models that previously sat just above the cap may now become eligible for full tax benefits.

3. Interest rates stabilise, but variation between providers remains substantial

Federal policy changes, including updated consumer credit guidelines and adjusted fleet-emission targets, are creating bigger differences between lenders.

This means finance providers are pricing risk differently, so your actual rate can vary more than ever, depending on the provider.

Because of this, it’s essential to compare the full package:

• finance rate
• fleet-pricing discounts
• admin & management fees
• inclusions in your running-cost budget

Evaluating these together (not individually) gives the only accurate picture of your true cost.‍

4. Fuel and servicing costs continue to climb 

Rising costs continue pushing up the price of fuel, parts and labour across the country – showing that the value of fully-maintained novated lease packages is where it’s at! 

Bundle all running costs into one payment and you can: 

• bundle all running costs together
• lock them into one predictable payment
• pay for them with pre-tax dollars for maximum savings!

Quick checklist: Is a novated lease worth it in 2026?

Tick 4 or more, and the savings usually stack up:

• My employer offers salary packaging
• I drive more than 12,000 km per year
• I want predictable weekly running costs
• I’m considering an EV under the LCT threshold
• I keep cars for 2–5 years
• I want GST savings on running costs
• I prefer no upfront car purchase
• I want to maximise after-tax income

Smart ownership is waiting for you 

Find the perfect car with our many novated lease options. Save thousands and drive your dream car! 

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