Tesla Novated Lease

  • Save $1,000s per year on the cost of a Tesla
  • Pay $0 Fringe Benefits Tax on eligible models
  • Get an accurate novated lease quote tailored to you

How much is the Tesla you're looking to novate?

Tesla Novated Lease
Tesla Novated Lease

Tesla novated lease benefits

Best match guarantee

Up-front GST saving on your Tesla (up to $6,191)

Consolidating debt

Make 100% of your lease payments with pre-tax salary (no FBT)

Novated Lease

Pay $0 GST on packaged running costs (e.g. charging)

Australian Customer Support

100% Australian customer support at every stage

Shopping around for the right novated lease can save you thousands of dollars in interest and fees.

In our Tesla novated lease guide:









Novated Lease Pricing on Popular Tesla Models

VehicleEstimated drive-away priceUp-front GST savingWeekly novated lease costTotal tax saving during lease

Tesla Model 3 (RWD)





Tesla Model 3 (Long Range)





Tesla Model 3 (Performance)





Tesla Model Y (RWD)





Tesla Model Y (Long Range)





Important: Vehicle price estimates as at July 2023. Calculations assume a NSW driver with an annual pre-tax salary of $120,000 and 15,000km driven annually over a 5-year lease. Estimated vehicle running costs include charging, comprehensive car insurance, servicing, registration and tyres.

benefits of an electric car novated lease

Package your running costs with a Tesla novated lease

A Tesla novated lease can be set up to include pretty much all running costs in your regular lease payment (deducted from your pre tax salary).

This can be convenient for budgeting and means you save more income tax and pay no GST on your regular car costs.

With a Tesla novated lease deal, you can package:

Bear in mind some related costs cannot be included, such as the cost of installing a battery or fast charger in your home.

novated lease companies

How does a Tesla novated lease work?

If you choose to finance your Tesla with a novated lease, this is what to expect:

  • The lease company purchases your choice of Tesla on your behalf and provides you with unlimited personal use of the vehicle.
  • The regular lease payments for the Tesla are deducted by your employer from your pre-tax salary each pay cycle (including car running costs).
  • You can choose a Tesla novated lease term between 1-5 years with fixed payments during the term.
  • When the novated lease term ends, you can own your Tesla outright by paying the residual value, then sell it and upgrade to a newer model with a new novated lease if you want. You can also choose to extend your existing lease for a new term.
Tax implications

FBT exemption on eligible Tesla novated leases

For Teslas Model 3 and Model Y variants valued below the luxury car threshold ($89,332 for FY 2023/24), your novated lease will be exempt from fringe benefits tax (FBT).

This is thanks to a government incentive aimed at increasing take up of low-emission vehicles in Australia. It reduces the cost of a Tesla or other eligible electric vehicle novated lease by thousands of dollars per year.

This is because 100% of the novated lease payments on your Tesla can be made using your pre-tax salary. Ordinarily some of the novated lease payments need to come from after-tax salary to offset the FBT.

Tesla models eligible for novated lease FBT exemption

Here are the models that are eligible for the FBT exemption at the time of writing:

  • Tesla Model 3 (RWD)
  • Tesla Model 3 (Long Range)
  • Tesla Model 3 (Peformance)
  • Tesla Model Y (RWD)
  • Tesla Model Y (Long Range)

The example below shows the impact of the FBT discount on the overall cost of a Tesla Model 3 (RWD) through a novated lease compared to buying it with a car loan and buying the vehicle outright with cash.

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Get a quick novated lease quote

See how much you could save on your Tesla plus running costs with a novated lease. Get a personalised, no-obligation quote today.


Tesla novated lease FAQ

Yes you can. In fact, the Tesla Model 3 is one of the most popular vehicles for novated leasing in Australia. You can acquire more or less any model of passenger vehicle through a novated lease, even a used car.

There are particular benefits for novated leases on eligible electric vehicles, as they are exempt from fringe benefits tax.

The residual value of your Tesla at the end of the novated lease will depend on the purchase price of the vehicle and the length of the lease term. The novated lease company facilitating your lease will explain how much you will need to pay.

The minimum residual values on novated leases are set by the ATO. For example in the 2023/24 financial year the minimum residual value on a 5-year novated lease is 28.13%.

In other words you would need to pay 28.13% of the vehicle’s purchase price (including GST) as a one-off final payment in order to own your Tesla outright. Alternatively you could extend the lease and refinance the residual into a new term.

Yes this is a common option for people who take out a novated lease. What typically happens is the trade in amount is used to pay off the residual value on the lease. If the trade in value is higher than the residual you can keep the profit, tax-free.

You could then upgrade to a newer Tesla model and begin a new novated lease to maintain the tax savings.

A novated lease on an electric vehicle, including eligible Tesla models, is particularly appealing due to the generous FBT exemption currently in place. Most people stand to make considerable tax savings with a Tesla novated lease.

However, you will need to factor in your own circumstances, including your income and how much you drive your car. Getting a personalised quote will help you get a better idea of whether a Tesla novated lease will be worth it for you.

Novated lease guides and resources

Find out more about the possible savings, benefits and things to watch out for, plus your range of options with a novated lease in Australia.

Written by

Shaun McGowan Money.com.au founder

Loans Expert

Shaun McGowan

Reviewed by

Sean Callery Editor Money.com.au


Sean Callery