Can I Claim Car Wash on a Novated Lease?

Yes, you can claim car washes on a novated lease. Under a novated lease agreement, all running costs related to your vehicle are typically covered, including fuel, servicing, registration, insurance, and yes, car washes. This is one of the key advantages of a novated lease – it consolidates the ongoing expenses of maintaining your car into one simple payment, often taken out of your pre-tax income.

A novated lease operates as a salary packaging arrangement between you, your employer, and a leasing company. As part of this setup, the leasing company pays for your car’s running costs, and these expenses are covered by your salary deductions. This means expenses like car washes, which are part of maintaining your vehicle, can be claimed as part of the arrangement.

Why Should You Claim a Car Wash?

Claiming a car wash on a novated lease not only helps you maintain the appearance of your car but also ensures it stays in good condition, which is especially important if you intend to sell or trade it in at the end of the lease. By including car washes in your novated lease expenses, you won’t have to pay out of pocket for this regular upkeep.

It’s worth noting that the specifics of what you can claim might vary slightly depending on your novated lease provider or employer policies. However, car washes are generally considered an eligible expense under most novated lease agreements in Australia.

How Do You Claim a Car Wash?

To claim a car wash, you usually just need to keep receipts or submit the cost through your novated lease management platform, depending on the processes in place with your employer and leasing company. The expense will then be deducted from your pre-tax salary, helping you to save on tax while ensuring your car is kept in top condition.

Ready to get more from your novated lease? Contact us today to find out how we can help you maximise the benefits of your novated lease, including the convenience of claiming car maintenance costs like car washes.