Novated Lease Cost for a Tesla Model Y
What a Tesla Model Y costs from your pay through a novated lease, and how much you'd save compared with buying it yourself, at salaries from $80,000 to $150,000.
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Take-home pay reduction per fortnight. Tesla Model Y Rear-Wheel Drive, from about $58,900 plus on-road costs, prices vary by state. Source: Zecar Tesla prices (October 2026).
About the Tesla Model Y
The Model Y is Australia's best-selling electric car by a wide margin. The entry Rear-Wheel Drive uses a lithium iron phosphate (LFP) battery of about 60 kWh usable. The Long Range AWD (from $68,900 before on-road costs) adds about 120 km of claimed range and is still under both the luxury car tax threshold and the proposed $75,000 cap. Tesla sells at fixed national prices online, so your lease provider buys the car direct from Tesla rather than through a dealer. It was the number 1 best-selling electric car in Australia from January to September 2026, with 35,930 sales.
At $58,900, the Tesla Model Y is a mid-priced electric car. The GST you get back on the price ($5,355) is close to the $6,353 cap, so a novated lease removes most of the GST as well as the income tax. The residual after 5 years is about $16,569. It's also under the $75,000 cap in the proposed FBT changes, so a new lease signed between 1 April 2027 and 1 April 2029 would still be fully exempt if the change becomes law.
Tesla Model Y novated lease cost by salary
Over 5 years, with running costs of about $4,500 a year bundled into the lease.
| Salary | Pre-tax deduction a year | Take-home pay drop a fortnight | Buying it yourself a year | Saving a year | Saving over 5 years |
|---|---|---|---|---|---|
| $80,000 | $15,346 | $400 | $16,330 | $5,925 | $29,627 |
| $100,000 | $15,346 | $401 | $16,330 | $5,895 | $29,476 |
| $120,000 | $15,346 | $401 | $16,330 | $5,895 | $29,476 |
| $150,000 | $15,346 | $361 | $16,330 | $6,945 | $34,726 |
The saving grows with your salary because each pre-tax dollar saves your marginal tax rate: 30% plus Medicare between $45,001 and $135,000, and 37% plus Medicare above that. On $150,000 the Tesla Model Y saves $6,945 a year, against $5,925 on $80,000.
Over 3 years
A shorter lease has higher payments but a bigger residual ($27,612 after 3 years) to pay or refinance at the end.
| Salary | Pre-tax deduction a year | Take-home pay drop a fortnight | Saving a year | Saving over 3 years |
|---|---|---|---|---|
| $80,000 | $17,499 | $455 | $6,862 | $20,586 |
| $100,000 | $17,499 | $458 | $6,800 | $20,399 |
| $120,000 | $17,499 | $458 | $6,800 | $20,399 |
| $150,000 | $17,499 | $417 | $7,850 | $23,549 |
The electric car FBT exemption
The Tesla Model Y Rear-Wheel Drive costs $58,900 before on-road costs, well under the 2026–27 luxury car tax threshold for fuel-efficient cars of $91,661, so it's exempt from fringe benefits tax when provided through a novated lease (for a car first held and used from 1 July 2022). The threshold is tested on the car's value including GST and options, but not registration or stamp duty, so most variants and option packs stay well clear of it. With no FBT, the whole lease and running costs can come from pre-tax pay, and the provider claims back GST on the price (up to $6,353) and on running costs.
The 2026–27 Budget proposed phasing the exemption down: from 1 April 2027 only cars costing $75,000 or less would stay fully exempt, cars between $75,000 and the threshold would get a 25% discount, and from 1 April 2029 every electric car would get a 25% discount. Existing leases wouldn't be affected. This isn't law yet. An exempt car still adds a reportable fringe benefit to your income statement, which counts for HECS-HELP, the Medicare levy surcharge and some payments.
Charging vs petrol
From its battery and WLTP range, the Tesla Model Y uses about 12.9 kWh/100 km on the test cycle, or roughly 14.8 kWh/100 km in real-world driving. Driving 15,000 km a year and charging mostly at home, that's about $802 a year in electricity, against $2,194 for a petrol car using 7.5 L/100 km at $1.95 a litre: a saving of about $1,392 a year before the tax benefit. On an off-peak EV tariff or with solar, charging can cost much less.
Tesla Model Y vs similar electric cars
| Model | From | Range (WLTP) | Per fortnight at $100k | Saving a year |
|---|---|---|---|---|
| Tesla Model Y Rear-Wheel Drive | $58,900 | 466 km | $401 | $5,895 |
| Zeekr 7X Rear-Drive | $57,900 | 480 km | $401 | $5,887 |
| Kia EV5 Air Standard Range | $56,770 | 400 km | $396 | $5,808 |
On a $100,000 salary, the Zeekr 7X would cost $0 a fortnight less than the Tesla Model Y through a novated lease, and the Kia EV5 $5 a fortnight less. The Tesla Model Y has a claimed 466 km WLTP range, against 480 km and 400 km. Compare all 15 electric cars.
Assumptions
Assumes a 5-year lease (3-year figures shown separately), 15,000 km a year, a 8.5% interest rate and $500 a year management fee (the calculator's defaults), the ATO minimum residual (28.13% at 5 years, 46.88% at 3 years, of the price less GST), and running costs of $3,700 a year for registration, insurance, servicing and tyres plus charging. Charging uses real-world energy use of WLTP figures + 15%, 85% home charging at 29c/kWh (plus 10% charging losses) and 15% public fast charging at 60c/kWh. Take-home pay uses 2026–27 resident tax rates with the Medicare levy and no HECS. "Buying it yourself" means a car loan at the same rate and term with the same balloon, paid from after-tax pay. Prices are list prices before on-road costs unless marked drive-away; your lease is usually based on the drive-away price, which is higher. Running costs for the Tesla Model Y are $4,500 a year ($3,700 plus $802 charging).
Sources
- Zecar Tesla prices: price and specifications (October 2026)
- The Driven: Australian EV sales by model, 2026
- ATO: luxury car tax rate and thresholds
- ATO: proposed changes to the electric car FBT discount
Frequently asked questions
How much does a novated lease on a Tesla Model Y cost?
On a $100,000 salary, a 5-year novated lease on a Tesla Model Y Rear-Wheel Drive (from about $58,900 plus on-road costs) would reduce your take-home pay by about $401 a fortnight, including running costs. That's about $5,895 a year less than buying the car with a loan from after-tax pay. On $150,000 it's $361 a fortnight.
Is the Tesla Model Y FBT exempt on a novated lease?
Yes. At $58,900 it's under the 2026–27 luxury car tax threshold for fuel-efficient cars ($91,661), so it qualifies for the electric car FBT exemption. It's also under the $75,000 cap in the proposed changes from 1 April 2027.
How much does it cost to charge a Tesla Model Y?
About $802 a year for 15,000 km, mostly charged at home at 29c/kWh, or roughly $5 per 100 km. A comparable petrol car would cost about $2,194 a year in fuel.
Prices as at October 2026; check with the dealer. Last reviewed October 2026. These are estimates for general information only, based on 2026–27 tax rates, and aren't financial or tax advice. Lease quotes vary between providers. Check figures with your employer's packaging provider or a licensed professional.