novated leasing

Frequently Asked Questions

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  • Explore a Novated Lease - a hassle-free, cost-efficient method to obtain a new or used vehicle. Benefit from tax advantages, substantial cost savings and a single, consistent payment deducted from your salary each pay run to cover both the vehicle and its operational expenses.

  • With a Novated Lease, you have the freedom to select your preferred vehicle, whether new or used. Novated Finance Australia can assist in sourcing the car through their dealer network, potentially securing significant discounts on the vehicle's price.

  • Discover the fully budgeted Novated Lease, encompassing all vehicle running costs based on your designated travel rate. This includes repayments, servicing, maintenance, fuel, insurance, and more. Tailor the lease to match your needs and receive detailed monthly reports to track budgets.

    We also offer Non-Maintained Novated leases where you only include the finance portion of the vehicle.

  • Unlock various advantages:

    1. Reduce Taxable Income

    2. No GST on the car's purchase price or running costs

    3. Cost-effective vehicle purchases through partnered networks

    4. Discounted fuel rates

    5. Fixed payment cycle covering all running expenses

  • Choose a term ranging from 1 to 5 years, with the option to refinance the residual value at the lease's end.

  • Select the vehicle you want to lease Complete a credit application

    Once credit is approved, you sign the novated lease documentation and provide required verification documents (E.g. drivers license) depending on the financiers requirements. If insurance and/or fuel card is included additional documentation may be required for signing.

    We will contact your Employer and send them the onboarding documentation (this is only applicable if the employer is not already onboarded with us) and the deed of novation for signing

    We will send payroll advice to your payroll team or supplier (if outsourced), so they know the amount to deduct each pay

    Contract settles with financier and Vehicle is picked up/delivered

  • A novated lease in Australia involves an agreement between an employee, their employer, and a finance company. The employer deducts lease payments and running costs from the employee's pre-tax income, making it a tax-effective way to finance a vehicle.

  • In a novated lease in Australia, the employee owns the lease, not the employer. The employee takes the lease with them if they change jobs, but the employer facilitates the payments.

  • The best length for a novated lease depends on your circumstances and preferences. Shorter leases may have higher monthly payments but offer more flexibility, while longer leases may have lower payments but require a more extended commitment.

  • A novated lease can cover fuel expenses, but it's essential to clarify this with your employer and review the terms of your specific lease agreement.

  • Novated lease terms can vary, but they typically last from 1 to 5 years. The length of the lease is negotiable and depends on your preferences and financial situation.

  • The Australian Taxation Office (ATO) provides guidelines on how novated leases work in terms of taxation. It's essential to consult with a tax professional or visit the ATO website for specific information.

  • The amount of tax saved on a novated lease varies depending on your income, the value of the car, and your personal tax situation. Consulting with a tax professional is advisable for an accurate estimate.

  • Costs included in a novated lease may consist of lease payments, fuel or charging (depending on the type of vehicle), insurance, registration, maintenance, and other running expenses. These costs are typically deducted from your pre-tax income.

  • An example of a novated lease might be an employee entering into an agreement with their employer to lease a new car for a set term, with the lease payments and running costs deducted from the employee's pre-tax income.

  • The process involves:

    • Vehicle selection

    • Completion of a credit application

    • Signing lease documents and providing necessary verification

    • Coordination with the employer for onboarding

    • Financer contract settlement and vehicle handover

  • Yes, finance is subject to approval from the financier who will conduct a credit check

  • When changing jobs, you can transfer the lease to your new employer or make direct finance payments if novated leases are not offered.

  • Follow a streamlined process by visiting preferred suppliers, notifying them that the lease is managed by Novated Finance Australia, and have them contact our dedicated service line (1300 001 418) for budget-approved work.

  • Under a budgeted Novated Lease, Novated Finance Australia manages and pays for the registration, ensuring a hassle-free experience for you. Confirmation emails are sent to you when your registration is renewed.

  • Upon lease completion, select from three options:

    1. Commence a new lease

    2. Refinance the residual value

    3. Own the vehicle outright

  • A Novated Lease is a tax effective way to purchase a car, using pre-tax dollars. You do carry the financial risk and the responsibility of the residual value at lease end when doing a Novated lease.

  • In most instances a Novated lease is worth it as it can offer tax benefits and convenience. However, is it always important to assess your own financial situation before proceeding with any finance product.

  • At the end of a novated lease, you have options, such as returning the car, extending the lease, or purchasing the vehicle. The choice typically depends on your preferences and circumstances. The responsibility of the Residual Value sits with the employee and not the employer or finance company.

  • Novation agreements offer complete transferability. In the event of an employee departing from their current job or facing termination, they retain the ability to continue making payments for a novated lease, as the lease responsibilities shift directly to the employee rather than relying on their employer. If your new employer does not do novated leasing, you can revert to making direct finance repayments to the financier.

  • The residual value or “balloon” is set by the Australian Taxation Office.

  • A novated lease is an agreement between an employer and an employee to finance a vehicle using pre-tax income. A car allowance, on the other hand, is a fixed amount of money given by the employer to cover vehicle-related expenses. You can use your car allowance to do a novated lease.

  • A novated lease can be taken out for a period of between 1 to 5 years.

  • A novated lease is not a loan but a lease agreement. It allows an employee to lease a vehicle and have the lease payments and running costs deducted from their pre-tax income, making it a tax-efficient way to finance a car.

  • You can often pay off a novated lease early, but it's essential to check the terms and conditions of your specific lease agreement, as some may have penalties or restrictions for early termination.

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