Novated Lease Ute: The Best Utes for Work, Travel, and Salary Packaging

Utes have always been a popular choice in Australia—for tradies, site supervisors, regional workers, and even families who want space and flexibility. But high upfront prices, running costs, and tax complexity can make it hard to manage without financing.

A novated lease ute solves this by spreading the cost across your pre-tax salary and bundling running costs into one regular deduction. If your employer allows salary packaging, you can get into a new or used ute without a large deposit or separate loan. Ute leasing works across industries, from mining to construction to local councils, and applies whether you need your ute for work, lifestyle, or both.

How a Novated Lease Ute Works

A novated lease ute is a salary packaging arrangement where your lease and running costs are deducted from your pay before tax. This lowers your taxable income while giving you full access to a work-ready vehicle.

Here’s the structure:

1. Choose your ute – New or used. Single cab, dual cab, 4x2 or 4x4.

2. Pick your lease term – Typically 1 to 5 years.

3. Structure your package – Include rego, insurance, tyres, fuel, and servicing.

4. Pay via salary – Your employer deducts pre- and post-tax amounts.

5. Use it for work or lifestyle – The vehicle is yours to use for both.

Whether you're driving between job sites in WA or towing gear on weekends, a novated lease gives you the tools to make it affordable and consistent. You also avoid interest-loaded commercial loans or lump-sum out-of-pocket costs.

To understand every step of the process, visit the About Novated Leasing page.

Who Should Use a Novated Lease Ute?

Not everyone leasing a ute is a tradie. A novated lease ute applies to employees in many sectors where transport is essential, and vehicle expenses add up fast.

Site Supervisors and Construction Workers

If you move between multiple sites, carry tools, or need a 4x4, a ute lease saves you from financing a vehicle yourself. You can bundle extras like canopy setups, bull bars, and tow packs into the lease.

FIFO and Mining Workers

Many FIFO workers in WA lease utes for their R&R periods. Novated lease terms allow short or long commitments, and packages can be tailored for high-kilometre use or remote servicing needs.

Councils and Government Employees

Ute leasing works for council and public sector employees with approved salary packaging. Many local government departments allow employees to lease dual-cab utes as part of their benefits.

Small Business Employees

If your employer offers novated leasing, you don’t need to be a sole trader or ABN holder. You just need an employer willing to enter a novation agreement. Many small businesses now include leasing in their HR setup.

Top Utes for Novated Lease in 2025 in Australia

The following models are popular novated lease ute options for 2025. Each brings a different mix of price point, fuel use, and purpose—whether you need to tow, haul, or travel long distances.

Isuzu D-MAX

The Isuzu D-MAX has built a reputation as a solid all-rounder. It suits both commercial and personal needs. Known for its towing power and low servicing cost, it’s popular for novated leasing because of its value at delivery and residual value at lease end.

• Available in 4x2 and 4x4

• Multiple cab styles

• Suitable for regional and metro driving

• Often used by electricians, plumbers, and landscapers

• Compatible with packaged accessories

Its running costs are predictable and generally sit well within most salary packaging limits. You can include rego, servicing, and insurance without pushing your budget.

Toyota Hilux

The Toyota Hilux is one of the most common utes leased under salary packaging in Australia. It holds resale value, fits strict FBT rules, and suits both city and site use. Many government departments approve the Hilux for fleet and novated lease use.

• Available in WorkMate, SR, and SR5 trims

• 4x2 and 4x4 available

• Known for long-term reliability

• Popular among state transport, health, and utilities workers

Lease providers can include off-road modifications and dual battery systems if needed. The Hilux also qualifies for multiple tax brackets depending on setup, which helps structure your lease cost effectively.

JAC T9 Ute

The JAC T9 ute is a new option gaining ground in the ute leasing market. It’s one of the more affordable dual-cab diesel utes, with standard tech features and strong towing specs. It’s an option for drivers who want lower lease repayments and newer tech inclusions without pushing into premium territory.

• Budget-friendly driveaway price

• Diesel engine with turbo

• Entry-level option for novated lease beginners

While not yet common in fleets, it’s starting to appear in private novated lease requests—especially for people looking at 2- or 3-year lease terms and planning to upgrade quickly.

Things to Consider Before Leasing a Ute

Before you choose a novated lease ute, it’s important to match the vehicle to your actual job requirements and driving habits. Utes are built for different uses, and the wrong setup can affect your repayments, servicing needs, and lease value over time. This section breaks down the key areas that impact the total cost and suitability of your ute under a novated lease.

Payload and Use Case

Utes come in a wide range of builds. Some are designed for hauling heavy equipment, while others are built to carry passengers or handle light-duty tasks. Your choice should reflect your actual day-to-day use—not just what’s popular.

If you work in construction and regularly carry tools, machinery, or raw materials, you’ll need a ute with a higher payload rating and reinforced suspension. That often means looking at dual-cab or heavy-duty 4x4 models. If your work is more administrative or requires light deliveries, a 4x2 with a smaller tray could reduce lease costs and fuel use.

Your novated lease quote should reflect these differences. Accessories such as trays, canopies, ladder racks, tow bars, and toolboxes can be packaged into the lease—but they must be listed upfront. Ask for a detailed breakdown to make sure everything you need for work is included in the financing. Adding them later may not be covered under the original lease terms.

If your employer requires branding or safety equipment like reversing cameras or bull bars, include these in your lease proposal as well.

Fuel Type and Driving Distance

Fuel costs are one of the biggest variables in ute ownership. Most utes in Australia run on diesel, which provides better fuel economy and torque for towing. However, diesel prices fluctuate across states and regions. If you're driving long distances—such as between Perth and Kalgoorlie, or across rural parts of northern Queensland—your fuel usage will be higher than average.

A novated lease ute allows you to bundle fuel costs into your pre-tax salary deductions using a fuel card. If your employer permits fuel card packaging, this gives you more accurate budgeting and removes the need to pay out of pocket. Make sure your lease provider includes fuel card options and sets kilometre estimates based on real-world driving distances.

Also, consider service intervals. Diesel utes often require more frequent servicing, especially when used in dusty or off-road conditions. Your lease quote should reflect the manufacturer’s service schedule. Some providers include capped servicing packages—this can reduce unexpected costs mid-lease.

If you drive mostly in the city, fuel usage will differ from someone who’s regularly off-road. Let your lease provider know where you’ll be driving so they can build a package that reflects your average energy and maintenance needs.

Lease Term vs Vehicle Use

How long you lease your ute matters—especially if your vehicle will experience heavy use. A three-year lease on a high-use ute may be safer than a five-year term, particularly if you expect dents, tray wear, or mechanical strain. Heavy site use, rough terrain, or high-kilometre driving increases the likelihood of end-of-lease wear and tear charges.

Choosing a shorter lease gives you more flexibility to upgrade the ute as your job or role changes. It also gives you a chance to reassess your needs after two or three years—especially if your workload, employer, or driving patterns change. Some employers allow lease rollovers or early upgrades as part of their salary packaging policies.

If you prefer to keep the ute long-term, you can plan for the residual value payment at lease end. This allows you to buy the vehicle outright if it’s still in good condition. Make sure your lease quote includes the estimated residual amount so you’re prepared when the time comes.

You can also choose between fully maintained and non-maintained lease options. A fully maintained lease covers servicing, tyres, rego, roadside, and more—this is often better for high-use utes. A non-maintained lease lowers your repayments but leaves these costs to you. Your decision should be based on how much control you want over the ute’s condition and long-term upkeep.

Ute Lease Deals and Tax Efficiency

The best ute lease deals depend on:

• Your gross income

• Car price

• Lease term

• Packaged extras

• Annual kilometres

If your ute is under the FBT base value threshold and qualifies for dual-use purposes, you’ll likely get strong tax efficiency. Diesel utes with fewer inclusions tend to reduce FBT, while high-end trims may increase your post-tax cost slightly.

A novated lease provider will help you structure this around your job type, employer policy, and intended use.

Get a Ute That Works for Your Job and Income

A novated lease ute gives you a way to drive the vehicle you need—without draining your cash flow. Whether you’re towing gear, working in the bush, or hauling stock across sites, the lease structure turns scattered costs into one monthly salary deduction. No balloon payments. No lump-sum costs. Just a work vehicle that fits your life and your pay cycle.

Want to see what your next ute would cost under salary packaging?

Book a consultation with Novated Finance Australia to get a side-by-side comparison of lease terms, models, and inclusions. Our team helps you build a quote that’s right for your job, your income, and your plans for the road ahead.

FAQs

• Do toolboxes and roof racks count as lease inclusions?

  Yes, if you add them at the start and they’re listed in the quote.

• Can I use a novated lease ute for full-time business use?

  No. Novated leases are for employees using the car for mixed personal and work use—not full business use.

• What happens if I damage the tray or liner during work?

  It depends on your insurance and end-of-lease inspection. Wear beyond fair use may incur extra costs.

• Can I tow trailers or boats with a leased ute?

  Yes, as long as it’s within the towing capacity and disclosed in your insurance.

• Do leases cover regional tyre wear from gravel roads?

  If tyres are included in your package, yes. Just confirm that off-road use is allowed in your insurance.