An employee leases a car through a novated lease provider like Novated Lease Australia.
The vehicle can be used for business purposes, or entirely for personal use.
As the employer, you are part of the agreement and commit to deducting the regular lease payments from the employee’s salary payment and remitting them to Novated Lease Australia. This happens as part of your normal payroll cycle.
The obligations under the lease are ultimately with the employee (the lease or vehicle do not go on the company balance sheet). If the employee leaves, the lease leaves with them.
The process can be easily automated and incorporated into your payroll processes and software.
It’s sometimes used as an alternative to having a company fleet of vehicles or offering a car allowance to staff.
Offer a novated lease to your employees
Attract and retain staff
Offer an employee perk that can save your employees thousands of dollars per year.
Cost effective and simple
We handle most of the admin and ensure there’s no direct cost to your business.
Low obligation for your business
If an employee decides to leave, so does their novated lease.
Novated leasing for employers: How it works
Offering novated leasing to your employers is a simple-to-administer and cost-effective company benefit. It allows your employees to drive their car of choice while saving thousands of dollars in GST and income tax, at little or no cost to your business.
Here's how it works:
As an employer what do I need to do?
You simply agree to the novated lease agreement, take regular automatic deductions from the employee’s salary and remit them to Novated Lease Australia.
