December 30, 2025
Is a Novated Lease Worth It in 2026?
1
min read
The 2026 Novated Lease Value Index is a practical guide to help employees decide if a novated lease is actually worth it.
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!
What fees should I watch out for in a novated lease quote?
Look closely at admin fees, finance rates, early termination fees, insurance mark-ups, inflated running-cost budgets and dealer delivery costs. Small differences can shift the weekly cost noticeably, so compare quotes side-by-side and run them through a calculator to check the true total cost.
Do certain car models consistently offer better novated lease deals?
Yes. EVs under the LCT threshold, high-volume models with strong fleet discounts, and vehicles with low servicing costs usually produce the best value. Popular examples include EV hatchbacks, mid-size SUVs and top-selling hybrid models.
How can Leaselab help me negotiate a better vehicle price?
Leaselab works with a national dealer network, so you get access to fleet-level pricing rather than retail sticker prices. We compare stock, quotes and availability across multiple dealers to secure sharper drive-away prices, often the biggest factor in reducing your total lease cost.
What factors impact the weekly cost of a novated lease?
Weekly costs depend on the vehicle price, interest rate, residual value, running-cost estimates, lease term, insurance, km assumptions and whether the vehicle qualifies for EV FBT exemptions. Fully-maintained packaging and EV incentives can significantly reduce your effective cost per week.
If you have questions, you can call us at any time on 1300 888 594, or request a callback or email us.
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