Novated Lease for Teachers & Department of Education Employees

See how you can save with a novated lease as a teacher, childcare worker or other Dept of Education employee.

Written byBevan GuestReviewed bySean Callery

How can a novated lease benefit education workers?

The vehicle can be used entirely for your personal use.
Novate your choice of a new or used vehicle.
There's a GST saving on the vehicle purchase price — a discount of up to $6,334 straight away.
Make part of your repayments using your before-tax salary so you pay less tax – this is known as salary sacrificing your car.
Add car-running expenses like insurance, rego, fuel/electricity, servicing, and tyres to your pre-tax repayments.
Save GST on eligible ongoing car running costs too.
If you choose an eligible EV or PHEV, the lease will be exempt from fringe benefits tax.
If you move employer, your lease can move with you.
Choose from a range of options to suit your needs when the lease term ends.

How much can Department of Education employees save with a novated lease?

Time for a quick maths lesson ; ) The tax savings with a novated lease can be significant, whether you're a senior educator or just starting your career.

Consider this hypothetical scenario where a Department of Education employee buys a Tesla Model 3 RWD with a purchase price of $66,100.

As you can see, the potential savings are significant.

We've based the calculation, on a five-year lease, a NSW-based driver, an annual pre-tax salary of $120,000, a car loan interest rate of 7.5% p.a. and car running costs (insurance, registration, servicing and tyres) based on 15,000km driven annually. The vehicle is eligible for the FBT exemption.

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

Find my best deal

Huge extra savings for EVs and PHEVs

An increasingly popular option for teachers and other education workers we help is to novate a zero or low emission vehicles. This is due to the generous fringe benefits tax (FBT) exemption that's available. It means you and your employer pay no FBT, which adds up to thousands in extra savings.

You can view a full list of the vehicles that are eligible for the FBT exemption to see what options are available.

How Novated Lease Australia can help education workers

We regularly help teachers and other educators get the best deal on a novated lease. We may be able to help even if your employer (e.g. a state government department) has an existing salary packaging provider.

In that scenario (known as a self-managed novated lease), we are often able to secure much more competitive novated lease deals for than the main salary sacrifice provider can, while minimising the management fees in the process.

"The other companies were quite satisfied in quoting excessive costs and simply failed to follow up in a prompt manner, if at all. NLA, Eddie and their support team have been excellent to deal with and all in all I have had a very easy and painless introduction to novate leasing. I have no hesitation in recommending NLA and Eddie." - Chris Kalmar

We regularly work with employees in the education system at federal or state/territory level, including in the ACT, NSW, NT, Qld (excluding Qld Gov employees), SA, Tas, Vic and WA. We can:

Assist you in purchasing a vehicle by using our fleet purchasing power to secure a discount on the regular price.
Find the most suitable novated lease offer from our selection of finance providers.
Calculate your car-running expenses based on your estimated car usage and include them in your lease budget.
Take care of all the admin and collaborate with your employer and salary sacrificing provider to optimise your lease for maximum tax savings.
At the end of your lease, guide you through your options and help you with the next steps.