Electric vehicle FBT exemption · Fortnightly cost · 2026–27 ATO rates
Vehicle price (drive-away)
Annual salary
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Running costs, interest rate and base value are auto-filled with market estimates. Open Advanced options below to fine-tune them
Fortnightly Pre-Tax Cost
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Annual Income Tax Saving
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Net Benefit Over 5 Years
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How is my take-home pay calculated?
Your take-home pay is gross income minus income tax, Medicare Levy, and HECS repayment. Super is paid by your employer on top, so it does not reduce your take-home pay.
Why does my result differ from my payslip?
Payslips use ATO PAYG withholding tables which round to weekly/fortnightly cycles. Small differences are normal and reconciled at tax return time.
Can I compare 2025-26 and 2026-27 rates?
Yes. Use the Tax Year selector above the calculator. From 1 July 2026, the $18,201–$45,000 bracket dropped from 16% to 15%, saving up to $268 per year.
Are these calculations an estimate?
Yes. Results are accurate estimates based on ATO rates. They do not account for individual deductions or investment income. Salary sacrifice to super is supported on the Full-time tab. Consult a registered tax agent for personalised advice.
What are the 2026-27 income tax rates?
0% up to $18,200 · 15% on $18,201–$45,000 (reduced from 16%) · 30% on $45,001–$135,000 · 37% on $135,001–$190,000 · 45% above $190,000. Plus 2% Medicare Levy.
What is the Low Income Tax Offset (LITO)?
LITO provides up to $700 tax reduction for earners under $37,500, phasing out by $66,667. Applied automatically. No claim required.
What is PAYG withholding?
Your employer deducts estimated tax each pay cycle. The ATO reconciles the total when you lodge your tax return, resulting in a refund or bill.
What is the $1,000 instant tax deduction?
From 2026-27, workers can claim a $1,000 standard deduction without keeping receipts. It reduces taxable income when lodging your tax return.
When do HECS repayments start?
Repayments begin when income exceeds $67,000 (2025-26) or $69,528 (2026-27). Below the threshold, no repayment is required regardless of debt balance.
How does the marginal repayment system work?
From 2025-26, you only pay on income above the threshold, not your entire income. On $80,000 (2025-26): 15% of ($80,000 − $67,000) = $1,950/yr. Far less than the old system.
What was the 20% HECS debt reduction?
All HECS-HELP balances were automatically cut by 20% as at 1 June 2025. A $30,000 debt became $24,000. No action was required. The ATO processed it automatically.
Does salary sacrifice reduce HECS repayments?
No. Reportable super contributions are added back to repayment income. Salary sacrifice does not reduce your HECS obligation.
What is the super rate in 2026-27?
12%. Your employer must contribute 12% of ordinary time earnings into your super fund. This is paid on top of your salary and does not reduce take-home pay.
Salary inclusive vs exclusive of super?
"$80,000 inclusive of super" = base $71,429 + $8,571 to super. "$80,000 plus super" = $80,000 base + $9,600 employer super contribution on top.
How are Working Holiday Makers taxed?
15% on the first $45,000. Above $45,000: resident rates apply (30% to $135,000, then 37% to $190,000, then 45%). No Medicare Levy. No HECS repayment.
What is the tax-free threshold?
Australian residents can earn up to $18,200 tax-free. With LITO, the effective threshold is about $22,867. Non-residents and WHMs pay tax from dollar one.
Can some working holiday makers use resident tax rates?
Some working holiday makers from certain countries with a tax treaty non-discrimination clause (e.g. the UK) may be eligible for resident tax rates instead of the flat 15% rate, depending on individual circumstances (see Commissioner of Taxation v Addy). This calculator uses the standard WHM rate. Check with the ATO or a tax agent if you think this may apply to you.
What is a novated lease?
A three-way arrangement between you, your employer, and a finance company. Your lease payments and running costs are deducted from your pre-tax salary, which can lower your taxable income.
Are electric vehicles exempt from FBT (Fringe Benefits Tax)?
Eligible battery and fuel-cell electric vehicles first held from 1 July 2022, and priced below the fuel-efficient luxury car tax threshold ($91,661 for 2026-27), are exempt from FBT. Plug-in hybrids are excluded from 1 April 2025.
If my EV is FBT-exempt, why does it still affect my HECS and Medicare?
Even when no FBT is payable, the benefit is still a Reportable Fringe Benefits Amount (RFBA). This amount is added to your income for HECS/HELP repayments and the Medicare Levy Surcharge, so those can go up.
What is the Employee Contribution Method (ECM)?
For petrol or diesel cars (not FBT-exempt), you contribute part of the cost from your post-tax salary to reduce the FBT taxable value to nil, so no FBT is payable.
What is a residual (balloon) payment?
The amount owing at the end of the lease, set by ATO minimum percentages based on the lease term (for example, 28.13% for a 5-year lease). At the end you can pay it out, refinance, or trade in.
How accurate is the novated lease calculator?
It uses current ATO 2026-27 rates and market-average estimates for interest and running costs, which you can adjust. For an exact result, open Advanced options and enter the figures from your lease quote.
How accurate is this calculator?
Very accurate for standard employees. Uses ATO official rates, the 2025-26/2026-27 HECS marginal system, and 12% SGC. Differences may occur with deductions, FBT, or investment income.
How often is the calculator updated?
Rates are reviewed each July when the ATO publishes new rates. An automated monitor checks for ATO changes and notifies the team. Report discrepancies using the feedback button.
Found an error?
Use the "Report an issue" button below the results. We review all feedback and update the calculator promptly.