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Discover how Australian employees can save up to $50,000 on their vehicles with a novated lease.
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What is a Novated Lease
A novated lease is a specialised financial arrangement in Australia that allows employees to lease a vehicle through a salary packaging scheme. This means that the employee-novated lease is facilitated by an agreement where the employer takes responsibility for the lease payments directly from the employee's pre-tax salary.
The novated lease benefits for employees include tax savings and the flexibility to drive a new car without upfront costs. This novated lease's meaning reflects a tri-party agreement between an employee, an employer, and a finance company, making it a unique and beneficial finance option for acquiring and maintaining a vehicle.
How Does a Novated Lease Work for Employees?
A novated lease allows employees to lease a vehicle using salary packaging, where lease payments are deducted directly from your pre-tax salary. This reduces your taxable income and provides access to a brand-new or used vehicle at a more affordable price. With the payments covering both the lease and operational expenses like maintenance, fuel, and insurance, it’s a simple and tax-effective way to drive your dream car.
Why choose a novated lease?
Choosing a novated lease offers many advantages for employees.
Save big with novated leasing benefits
Novated leasing allows you to save on taxes while driving the car you love. With flexible payment options, you can enjoy hassle-free car ownership.
Drive your dream car with ease
A novated lease lets you drive the car you’ve always dreamed of. With simple, affordable payments, getting into your dream vehicle has never been easier.
Flexible payment options with novated leasing
With novated leasing, enjoy flexible payment plans. Whether you prefer low monthly payments or a tailored solution, novated leasing is the best option.
Stress-free driving experience
Novated leasing includes all the essentials, from insurance to maintenance, ensuring hassle-free car experience. Drive with peace of mind and no unexpected costs.
What Are the Benefits of a Novated Lease for Employees?
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Tax Benefits
A novated lease electric car allows you to make payments from your pre-tax salary, lowering your taxable income and providing significant tax savings.
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Fixed Weekly Cost
With a novated lease electric car in Australia, you enjoy the peace of mind that comes with one predictable, manageable weekly payment, making budgeting and financial planning easy.
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Access to Premium Vehicles
80% of customers are surprised to find that their dream electric car comes with the same weekly cost as a more standard vehicle, thanks to the employee benefits of a novated lease.
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Lower Vehicle Purchase Price
Through Novated Finance Australia, you gain access to an extensive network, ensuring competitive pricing and great deals on a range of vehicles, including novated lease electric cars.
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Included Car Costs
Fuel (or charging), servicing, and registration are included in your novated lease electric car, significantly reducing ongoing costs and eliminating unexpected expenses.
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Fast Approval Process
Get into the driver’s seat faster with our streamlined 4-hour approval process*, ensuring a quick and hassle-free experience for employees looking to lease an electric car.
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Flexible Lease Terms
Enjoy the flexibility of choosing lease terms that suit your needs, with options ranging from 1 to 5 years, allowing for manageable payments and flexibility at the lease’s end.
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Seamless Integration with Payroll
Your novated lease payments are directly deducted from your pre-tax salary via payroll, making the process smooth and effortless without any additional administrative burden on your part.
Get the Best Novated Lease Deals
Looking for a cost-effective way to drive the latest vehicles? Novated leasing offers unbeatable benefits, combining tax perks with reduced running costs. With a novated lease for employees, you can drive electric or hybrid cars while enjoying a seamless experience with insurance, maintenance, and more covered.
Have you got any questions?
If you have any questions about novated leasing or how it can benefit you, our team at Novated Finance Australia is here to help! Whether you need more information about the leasing process, the vehicles available, or the tax advantages, we're happy to assist.
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Novated leasing is a specialised financial arrangement in Australia that allows employees to lease a vehicle through salary packaging. With this agreement, the employer makes lease payments directly from the employee’s pre-tax salary, reducing taxable income and offering potential tax benefits.
This three-party agreement involves the employee, employer, and a finance company, providing a cost-effective way to acquire and maintain a vehicle. Novated leasing covers all vehicle-related expenses like fuel and maintenance, making car ownership simple and financially advantageous for employees.
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Yes, both new and used vehicles can be leased through a novated lease.
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A novated lease can offer significant savings by reducing your taxable income and offering GST savings on the vehicle purchase and running costs. .The key savings come from salary sacrificing your lease payments, meaning they are deducted from your pre-tax salary, reducing your income tax. Additionally, you avoid paying GST capped at $6,334, on the purchase price of the vehicle and potentially on running costs like fuel, servicing, and insurance.
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A novated lease can include vehicle repayments, fuel, insurance, registration, servicing, and maintenance.
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Lease terms typically range from 1 to 5 years, depending on your preferences.
Save on tax and get into your dream car with a novated lease
Access the secret to how Australians are instantly saving up to $50,000 on an EV
