Novated Lease
A Smarter Way to Drive – With Your Employer’s Support
Looking for a cost-effective way to finance your vehicle through your salary? A Novated Lease is a three-way agreement between you, your employer, and a financier that allows your employer to pay for your car and related expenses — straight from your pre-tax salary.
What is a Novated Lease?
A Novated Lease is a salary packaging arrangement where your employer covers your car finance and running costs as part of your remuneration package. This lease can run from 12 to 60 months, offering flexibility and convenience — without the upfront financial burden.
Types of Novated Lease
Fully Maintained Novated Lease
All vehicle expenses are bundled into your salary package, including:
Non-Maintained Novated Lease
The lease covers only the finance. You (the employee) are responsible for paying maintenance and other running costs directly.
Flexibility of a Novated Lease
A novated lease gives both the employer and employee added flexibility:
- Choose any car you like (new or used, depending on lender policy)
- If you leave your job, the lease simply transfers back to you
- The car does not appear on the employer’s balance sheet
- Simplifies car ownership without long-term commitment
Tax Benefits of a Novated Lease
One of the biggest advantages of a novated lease is the tax saving:
Lease and running costs are paid from your pre-tax income, reducing your taxable salary
Employers can claim GST credits on lease payments and vehicle expenses. The GST on the car’s purchase price is handled by the financier — no upfront payment from you. Potential to increase your take-home pay depending on your financial situation.
Want to Explore a Novated Lease?
Let our experts guide you through how a novated lease can benefit your financial goals. We’ll help you find the right plan, the right car, and the right savings.