Assumptions & other conditions applicable to the Novated Lease Calculator

  1. Your Employer is an incorporated company and registered for GST.
  2. You (as Employee/Vehicle Driver) will not use the vehicle for any business purpose.
  3. The current Individual Income Tax Rates have been used assuming you are an Australian resident for Tax purposes and that the full Medicare Levy of 1.5% applies.
  4. There is no purchase option but the residual value is payable if the vehicle is not returned to Street Fleet at the end of the lease. However, at or just before the lease ends, you can make an offer to buy the vehicle.
  5. Your quoted Gross Salary is equal to your Taxable income (ie gross cash salary excluding benefits).
  6. There is no change to the company or individual tax rates or the Medicare levy during the period in which the vehicle is leased.
  7. The Retail Price does not include on road costs or luxury car tax however an allowance for these costs is included in your quote estimate. The default state for this estimation is Victoria, Australia.
  8. The "Running Costs" used in the Calculator are based on a reasonable estimate for the vehicle type selected and may vary to some extent to those running costs included in a formal Novated Lease quote.
  9. The Fringe Benefit Tax Rates are based on the Statutory Cost Method and default to the current standard applicable rates under Australian Taxation law.
  10. Typically, the range for residual values for Novated Finance Leases are those appearing in the Residual Value Range column below. The residual value percentages used by the Calculator (as shown below) reflect the safe harbour "Minimum Residual Value" percentages as set out in Australian Tax Office determination TD 93/142.
    However, the actual residual value that will be incorporated in a formal Novated Lease quote will likely differ from the Calculator figure as it will more accurately reflect the estimated market value at lease end of the particular vehicle being leased.

    Terms

    Residual Value range

    Calculator Residual %

    1 Year

    63.75% - 70%

    65.63%

    2 Years

    52.50% - 60%

    56.25%

    3 Years

    41.25% - 50%

    46.88%

    4 Years

    30.00% - 40%

    37.50%

    5 Years

    18.75% - 30%

    28.13%

  11. All payments and rentals are on the basis of being monthly in advance. It is also assumed that the vehicle will be sold at or immediately following lease end.