Frequently Asked Questions
For Employees
How do I save money with a novated lease?
A novated lease allows you to use your pre-tax salary to pay for your car and its running costs, reducing your taxable income. This can lead to income tax savings. You also benefit from fleet discounts, GST savings on the purchase price (for eligible buyers), and potentially better deals on servicing, tyres, and fuel.
Can I choose my own car?
Yes, you can lease a new, used, or even your existing car (subject to age and condition limits). We’ll help guide you through what qualifies.
Tell me about the Electric Vehicle rebates.
If you lease an eligible electric vehicle under the Luxury Car Tax threshold ($89,332 for EVs in 2024–25), you may benefit from the Fringe Benefits Tax (FBT) exemption, which can save you thousands. Additionally, some states offer upfront rebates or stamp duty waivers—we’ll help you navigate what applies in your area.
What happens if I change jobs?
If you change employers, the lease becomes your responsibility. You can either pay directly or transfer the lease to your new employer if they allow novated leasing.
Do I own my car at the end of the lease
At the end of the term, you have the option to pay a residual value (balloon payment) and own the vehicle, refinance it, or trade it in for a new lease.
How do I save money with a novated lease?
A novated lease allows you to use your pre-tax salary to pay for your car and its running costs, reducing your taxable income. This can lead to income tax savings. You also benefit from fleet discounts, GST savings on the purchase price (for eligible buyers), and potentially better deals on servicing, tyres, and fuel.
For Employers
Why should our business offer novated leasing
It’s a no-cost, low-risk employee benefit that enhances your salary package offering, boosts overall job satisfaction, and helps attract, engage, and retain top talent in a competitive market.
Is it complicated to manage?
Not at all. Our leasing provider handles all administration, including contracts, servicing, and reporting. Your payroll team will receive clear instructions and full support to set up and manage pre-tax deductions, making the process simple, seamless, and hassle-free for your business.
Does it cost anything to set up and run?
There are no upfront costs or ongoing financial obligations for your business. Your payroll simply deducts lease payments from the employee’s pre-tax income, streamlining the process while delivering valuable tax benefits and savings for your staff. It’s an easy, efficient way to offer more without increasing your employment costs.
What are the tax benefits to the business?
Novated leasing can help reduce your payroll tax and workers’ compensation liabilities by lowering your employees’ gross salaries. It’s a smart way to offer valuable benefits while potentially decreasing your business’s tax burden. Plus, employees enjoy income tax savings through pre-tax salary deductions, making it a win-win for everyone.