Novated Leasing


A novated lease (more commonly known as salary packaging) allows an employee to lease a car, with their employer making payments on their behalf before tax.

There are three parties involved in a novated lease – the employer, the employee and the finance company. Under this agreement, the employer agrees to pay the monthly lease payments on behalf of the employee and the employee agrees to have this done on their behalf (taking less income home or ‘salary sacrificing’ the amount of the repayment plus some other costs such as insurance and on-road costs).

There are different benefits for employers and employees that make novated leasing attractive:

Employee Benefits:

  • Your choice of term between 1 and 5 years
  • Choose the car that best suits your needs – not just a fleet car
  • The security of a fixed interest rate and fixed monthly repayments
  • You can take the vehicle and lease with you if you change jobs
  • Repayments are made from pre-tax income rather than your after-tax income
  • Equity built up in the vehicle is yours, not your employers
  • Possible tax benefits

Employer Benefits:

  • Avoid the residual risk and surplus vehicles that come with fleet ownership
  • Provide attractive remuneration packages that include a vehicle
  • Less admin than fleet management
  • Reduced Payroll Tax and WorkCover premiums

To get started, complete an online query now and one of our Business Managers will be in touch shortly, or call us on 1300 522 355.