Everything you need to understand Australia's salary packaging arrangement — from the three-party agreement to FBT, GST savings, and end-of-lease options.
Australia's unique three-way salary packaging arrangement that lets employees lease a vehicle from pre-tax income.
Pre-tax deductions, Fringe Benefits Tax, and the Employee Contribution Method explained.
Roles and responsibilities of the employee, employer, and finance company.
Full exemption now, phased wind-back from 2027, and grandfathering rules for existing leases.
Fleet quotes show a large "savings" total. That number measures tax packaging — not whether you end up ahead compared with cash, a loan, or keeping your current car.
ATO minimum balloon payments, GST at lease end, and your options when the lease finishes.
An honest assessment of when salary packaging a car makes sense — and when it doesn't.
Answers to common questions about employer approval, vehicle choice, job changes, and tax treatment.
Read the full EV exemption guide — announced in the 2026 Federal Budget. Existing leases are grandfathered.
| Phase | Period | FBT treatment (new leases) |
|---|---|---|
| Phase 1Current | Now → 31 Mar 2027 | Full FBT exemption for eligible EVs below LCT threshold ($91,387) |
| Phase 2 | 1 Apr 2027 → 31 Mar 2029 | Full exemption for EVs ≤ $75,000; 25% FBT discount for $75,001–$91,387 |
| Phase 3 | From 1 Apr 2029 | 25% FBT discount for all eligible EVs below LCT threshold |
Read the full residual values guide — payable from after-tax income at lease end, plus 10% GST.
65.63%
12 months
$39,378 on $60,000
56.25%
24 months
$33,750 on $60,000
46.88%
36 months
$28,128 on $60,000
37.50%
48 months
$22,500 on $60,000
28.13%
60 months
$16,878 on $60,000
Use our ATO-compliant calculator, upload a fleet provider quote, or ask NOVA — all free.