In Australia, novated leases for Plug-In Hybrid Electric Vehicles (PHEVs) like the Model Y can offer significant tax benefits.
Get prices and availability and be one of the first to access the 2025 Tesla Model Y
See pricesTesla has launched a new sleeker version of the very popular Model Y electric SUV while offering big discounts on existing stock of the current car.
The refreshed Model Y was finally launched this month with a special Launch series, offering two variants with significant upgrades.
This introductory edition comes with more range, faster acceleration, quieter, greater comfort, updated styling, new paint options, new screens in the interior and much more.
With that out of the way, which should you consider when upgrading to a new electric SUV?
Let's look at the key changes in the new model, starting with the price. The new model starts at $63,400 for the RWD and $73,400 for the Long Range AWD before on-road costs, representing increases of $7,500 and $3,500, respectively, compared to the 2024 models.
This is quite a price jump as part of the Launch series cars that come with styling and software upgrades. These include exclusive badging, puddle lights, bespoke doorsill plates, and standard 20-inch Helix 2.0 wheels (replacing the 19-inch aero wheels on the previous RWD model).
The Long Range all-wheel-drive (AWD) Launch series also includes a software upgrade called Acceleration Boost, which improves acceleration of the car, making it zippier around town or on the highways when needed. This is normally a $3,000 option on previousl Long Range vehicles of the outgoing model.
Another inclusion in the Launch series pricing is the paint options, which, apart from White, the free option on the current model, cost between $1,500 and $2,400 on the outgoing model.
All the paints, including the new futuristic-looking Glacier Blue, are included in the price of the Launch series.
Aside from these additions, the new Model Y has been improved in many ways. On the styling front, it features a sleeker design, which takes inspiration from the company’s recently unveiled Robotaxi self-driving car.
This sleekness and a slightly larger battery have also helped improve the car’s overall range by increasing it to 466 km on a single charge while sitting on the larger 20-inch wheels.
The range would improve even further when smaller wheels are offered to Australian drivers in the coming months.
Looking at the rear, the new taillight also features a lightbar that creates a glow at night, lighting up the centre badge, which states “Tesla” instead of the logo found on the outgoing model.
Moving on to the inside, the refreshed model has plenty of upgrades, including interior ambient lighting, ventilated front seats, rear passenger controls and an entertainment screen, upgraded sound system with more speakers, powered reclining second-row seats, upgraded suspension, and improved acoustic glass.
It’s worth noting that Tesla has kept the indicator stalk, unlike the stalk-less Model 3 that replaced the indicator stalk with buttons on the steering wheel.
Looking at the performance of the two refreshed variants, the RWD variant now achieves 0-100 km/h in 5.9 seconds (down from the previous model), with a range of 466 km (up 11 km).
The Long Range AWD variant with a larger battery boasts a range of 551 km and accelerates to 100 km/h in just 4.3 seconds. RWD charging speeds have also increased to 175 kW.
Many of these subtle changes will make a big difference on the road, improving the overall driving experience of Australia’s best-selling EV.
On the other hand, the outgoing model is now offered with good discounts, making it the cheapest it’s ever been.
The new Model Y inventory in white with 19-inch wheels is priced at $53,300 before on-roads, which is a saving of $4,000.
This also makes the outgoing model $10,000 cheaper than the new Launch series, which, when leasing, will help save even more over the time of ownership.
Whichever new model suits your lifestyle and budget, talk to our team at Novated Lease Australia, and we will get you behind the wheel of a Tesla Model Y that’s right for you.
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.
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 dealIs there a minimum salary to get a novated lease?
No, there is no minimum salary to get a novated lease.
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.
Chat with one of our experts about how much you may be able to borrow.
How long will my novated lease be?
The term of the lease agreement is completely up to you.
Generally, terms of one to five years are available under a novated lease.
The length of the lease term will determine your repayments and your residual.
What's the minimum and maximum value of car I can get?
The amount you can borrow for a vehicle will vary depending on the lender.
In general, the minimum novated lease amount is $10,000, while higher amounts (up to $500k) are subject entirely to the repayment capacity of the applicant.
Chat with one of our experts about how much you may be able to borrow or check out our novated lease explained guide.
Can you help me get a novated lease anywhere in Australia?
Can I buy a used car with a novated lease?
Yes, you can buy a used car both privately or through a dealership.
Some financiers will allow the vehicle to be up to 15 years of age at least end.
Buying a used car from a dealership will also still see you save the GST on the purchase price. Find out more by visiting used cars through a novated lease
Can I get a novated lease if I work for my own company?
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.
What happens at the end of a novated lease?
You have a few options available at the end of your novated lease term:
Upgrade - most of our customers tend to upgrade their vehicle, your expert consultant can help you find the right upgrade for you and even help you sell your current vehicle to help pay out the residual. If the sale price is higher than the residual, you keep that profit - tax-free!
Extend - If you want to keep the same car and continue enjoying the tax savings, we can help you refinance the residual amount for another term of your choice.
Own outright - Pay the residual amount (including GST) at the end of the lease term to own the car outright
What happens if I leave my current job during a novated lease?
If you leave your job during the term of your novated lease, you will still be responsible for making the finance repayments 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.
If you are going to a new employer who offers novated leasing as an employee, you may be able to transfer your novated lease over under a re-novation, or request Novated Lease Australia set up as a partner.