Save $1,000s with a novated lease

Get the best deal on a novated lease

How much is the car you wish to novate?

Get your free quote from our expert team

After receiving this, you'll see why more and more Australians are choosing to novate their next cars.

What is a novated lease?

A novated lease is the most cost-effective way to acquire and run a car.

It's a three way agreement between you, your employer and Novated Lease Australia.

A novated lease is an automated discount on your new car - you do not have to pay the GST on the purchase price of the car, instantly saving you thousands of dollars.

You can also include all of the running costs of the car, including fuel, registration, maintenance and insurance. This further increases the huge savings you can make with a novated lease.

Salary sacrifice car
squiggle

How does a novated lease work?

Just like other forms of car finance, there are typically a number of payments over a fixed term, with a residual (or balloon) payment due at the end of the lease. Each party to the agreement – employer, employee, and financier – will play a specific role.

The employer

Agrees to make regular, automated payroll deductions from the employee’s pre-tax salary. Our expert team helps set everything up.

The employee

Agrees to pre-tax salary deductions, in exchange for the use of the vehicle. The vehicle can be used for business or entirely for personal use.

The financier

Procures the vehicle, establishes the lease and manages the administrative, contractual and compliance aspects of the transaction.

How does a novated lease work

Huge extra EV savings

You can now buy and run an eligible electric vehicle (up to the luxury car tax threshold) through a novated lease and be exempt from fringe benefits tax (FBT).

This supersizes the already considerable savings.

The example shown is the cost of buying and running a Tesla Model 3 RWD over 5 years, compared to using traditional car finance and buying the car outright using cash. (The calculation is based on a driver in NSW with $120,000 pre-tax salary, 15,000km driven annually and car loan interest rate of 7.5% p.a.)

Electric vehicle novated lease fringe benefits tax saving example compared to car loan and buying car outright

Thanks to the major fringe benefits tax incentive, EVs and PHEVs are in high demand. Here are some the most popular eligible vehicles below the luxury car tax threshold.

Press go

on that new EV

Tesla Model Y Novated Lease Australia

We also help customers every day with fantastic deals and major tax savings on Australia's best-selling non-EVs.

Novate

a bestseller

Ford Ranger Novated Lease Australia

Quick-fire novated lease questions

Learn more about how a novated lease works from start to finish. Our expert consultants can also answer any questions, so you can sign up with confidence.

Find my best dealFAQ questions

Yes, right now, people more than ever are getting used cars through a novated lease instead of waiting for a new car deal. Buying a used car from a dealership will still see you save the GST on the purchase price.

Novated leasing approval is dependent on your capacity as a borrower much like traditional finance. This means you need to illustrate your ability to meet regular repayments over the term of the lease. 

For example, as it is entirely dependent on your personal living situation, expenses and dependents, you could gain approval for a $30,000 vehicle on a yearly salary of $45,000.

The amount you can borrow for a vehicle will vary depending on the lender. In general, the minimum novated lease amount is between $5,000 and $10,000, while higher amounts are subject entirely to the repayment capacity of the applicant. 

Novated lease agreements may exceed $100,000 but very rarely exceed $150,000.

Get expert answers to more of the common questions in our novated lease explained guide.

The term of the lease agreement is flexible, to suit the employee.

Generally, terms of one to five years are available under a novated lease. The shorter the term of the salary packaging agreement, the higher the residual.

You have a few options available at the end of your novated lease term:

  • Pay the residual amount (including GST) at the end of the lease term to own the car outright.
  • Sell the car (either privately or through a dealer) and if the sale price is higher than the residual amount owing, you get to keep the profit tax free.
  • If you want to keep the same car and continue enjoying the tax savings, we can help you to refinance the residual amount for another term.

If you leave your job during the term of your novated lease, or are fired from your position by the employer, you will still be responsible for making payments on the vehicle. 

The lease will be de-novated, where the running costs are removed from the agreement and repayments work much the same way as a standard car loan. 

Salary sacrificing a car through a novated lease can be suitable for a business owner who is also an employee of their own company, but it’s only an option if the business owner is receiving a salary from the company they own.

If you are planning to leave your current employment to start your own business, you can transfer your novated lease, provided you are paying yourself a salary.

If you are self-employed – i.e. are not paid a salary or paying yourself a salary through your own company – you will need to look at alternative forms of vehicle finance.

Yes, our team members are located all throughout Australia.

Our head office is in Sydney and we have further locations in Melbourne, Perth, Brisbane and Adelaide.

Get the best deal on a novated lease
Find my best deal

The most popular cars being novated right now

TeslamgbydknhyundaiMazdaToyotapolestarBMWFordNissanIsuzu
NovatedLeaseAustralia.com.au
Our Office Locations

NSW

Level 3, 201 Miller St, North Sydney, NSW, 2060, Australia

VIC

Suite 3, Level 2, 1 Taylor Street, Moorabbin, VIC, 3189 Australia

Company

Novated Lease Australia Pty Ltd

ABN: 69 659 639 004

ACN: 659 639 004

© 2023 by Novated Lease Australia