Novated Lease FAQs

Frequently asked questions

General questions

  • A novated lease is a popular finance option which enables employees to package the costs associated with owning and operating a private vehicle into their salary. This allows for a more convenient and streamlined process of car ownership, with payments and running costs deducted from pre-tax income. By reducing taxable income, a novated lease can result in significant tax savings, making it a cost-effective option for many individuals.

    A novated lease can provide a practical, hassle-free solution for employees looking to purchase and maintain a car while also enjoying financial benefits.

  • Not sure if a novated lease is suitable for you? Here are some reasons why it's the simple and obvious choice!

    • Enjoy significant income tax savings through pre-tax salary deductions.
    • Save money on the upfront purchase of a car with GST savings.
    • Reduce ongoing costs with GST savings on running expenses, such as maintenance and servicing.
    • Take advantage of fleet discounts on new car purchases and ongoing discounts on servicing, maintenance, and tyres.
    • Get access to fuel discounts to save even more on your driving expenses.
    • Benefit from the ultimate in convenience, with all finance and running costs bundled into one easy payment that's deducted directly from your salary.

    By choosing a novated lease, you can save money on an expense you already have, simplify your car ownership experience, and enjoy a range of exclusive discounts and benefits. So why wait? Start exploring your novated lease options today and experience the difference for yourself!

  • In general, yes. It is possible to have a novated lease for yourself, your spouse or partner, and even your children. However, the specific policy of your employer will ultimately determine if it’s possible for you to have multiple novated leases. For more information, please do not hesitate to contact us.

  • A novated lease covers the finance for your vehicle, as well as the associated running costs. You would have a budget for expenses such as fuel, servicing, maintenance, tyres, registration renewals, comprehensive insurance, and roadside assistance. This makes managing your finances simpler as you don’t have to pay out these expenses from your own pocket.

  • You can choose to lease a brand-new car, a second-hand vehicle or even your own personal vehicle! It is important to note that second-hand vehicles may have age restrictions, and there may be minimum financed amounts to consider. If you would like to learn more, we recommend speaking to one of our knowledgeable consultants who can provide you with all the details you need.

  • Residual value is the amount owing (incl gst) at the end of your lease term. The residual is determined by your lease term and guidelines set by the Australian Taxation Office.

    It's important to keep in mind that you'll need to pay the residual value in full at the end of your lease if you want to take full ownership of the vehicle. However, if you prefer to keep the lease going for an additional term, you may choose to refinance the residual amount.

    If you have any questions about residual value or leasing a car in general, feel free to reach out to us. Our friendly team is always here to help!

  • We consider factors like your lease term and expected travel distance to calculate an accurate running cost budget covering fuel, maintenance, and repairs. If your circumstances change during your lease term, such as driving more or less than expected, we can easily adjust your budget to align with your situation more accurately and to avoid any surprises.

    Reach out to our team for assistance or inquiries at 1300 408 046 or [email protected]. We're here to help.

  • You will have access to an online portal and mobile app, allowing you to view information about your account whenever you need it. Additionally, we proactively monitor your expenditure during the entire lease duration, and if necessary, we may reach out to you to adjust and align your budgets accordingly.

    Our aim is to provide you with easy and instant access to your account information through our user-friendly online portal and mobile app. We are committed to monitoring your spending throughout the lease term, and we may contact you to discuss any necessary adjustments to ensure your budgets are aligned with your needs and goals.

  • If your vehicle needs servicing or maintenance, don't worry - we've got you covered. Simply book an appointment by giving us a call on 1300 13 13 16 or emailing us at [email protected] and we’ll take care of the rest.

    Thanks to our strong relationships with suppliers all over the country, we'll negotiate on your behalf the best service at the best price and take care of paying the invoice for you directly from your account balance. It’s that easy!

    If you have any questions or concerns, please don't hesitate to reach out to our friendly team. We're always happy to help.

  • If your vehicle needs new tyres, we've got you covered! Simply book an appointment with us by giving us a call at 1300 13 13 16, or send us an email at [email protected].

    Because of our great relationships with suppliers all over the country, we’ll negotiate on your behalf the best possible deal and we will take care of paying the invoice directly from your account balance. It’s that easy!

    If you have any questions or concerns, don't hesitate to reach out to our friendly team. We're always happy to help and answer any questions you may have.

  • If you find that your situation has changed, please get in touch with us via phone on 1300 13 13 16 or email [email protected], and we can update your budget based on how much time is left on the lease.

  • When your employment ends, your novated lease will also end on the last day of your employment.
    If you are looking to leave your employer, it is important to let us know so we can outline the options available:

    • Transfer your lease to your new employer
    • Move to a finance lease if you are between jobs – you’ll pay the running costs from your own pocket. When you return to work you can simply renovate the lease with your new employer
    • Payout the remaining balance on your lease
  • As you near the end of your lease term, we will be in touch with you to discuss the options available to you. There are three main options:

    • Trade in or sell your car and upgrade to a new vehicle.
    • Refinance the residual amount owing on your car. If you're not ready to part ways with your current car, you can choose to refinance the residual amount owing on your lease.
    • Payout the residual value and take full ownership of the car.

    Our team will be available to answer any questions you may have about these options and help you make an informed decision that suits you. So please don't hesitate to get in touch with us towards the end of the lease.

  • Fringe Benefits Tax (FBT) is a tax that is paid by your employer for any benefits provided to you instead of salary or wages. If you have a novated lease or salary packaging arrangement, you may be required to pay the FBT as the employee receiving the benefit. However, in a novated lease, the Employee Contribution Method is often applied to offset any FBT. If you have any questions or concerns about FBT, we recommend reaching out to your employer or a qualified financial advisor for guidance.

  • The Employee Contribution Method allows you to make post-tax payments towards the novated lease to offset FBT. This is the most common method used but is dependent on your employer and the industry you work in.