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Novated Lease


Novated Leasing is a method of salary packaging, whereby the the customer is an employee who leases a vehicle, and the monthly lease rentals are paid by the employer using the employee’s ‘pre-tax’ salary.

How does a Novated Lease work?

The financier purchases the vehicle on behalf of, and as instructed by, the customer. A three way agreement is then entered into between the financier, the customer (employee) and the employer, whereby the customer enters into the lease, but the employer agrees to pay the lease on behalf of the customer, out of the customers ‘pre-tax’ salary. At the end of the lease the customer then has the option to either purchase the vehicle from the financier (at an amount agreed upon at the start of the lease), trade the vehicle in for a new one and take out a new novated lease, or continue on with the lease with any residual amount (again, agreed upon at the start of the lease).

Benefits to the Customer (Employee)

  • Tax effective lease option with monthly installments being paid from ‘pre-tax’ salary.
  • Full control of the vehicle, from choosing which vehicle to purchase, right through to taking the vehicle, and any equity built up throughout the term, with you if you change jobs.
  • Can use the car whenever, for whatever purpose you like, with all the benefits of effective ownership of the car.


Benefits to the employer

  • No risk of being left with the car (or lease obligation) – if the employee leaves they take everything with them.
  • Certain tax benefits may apply to the employers business.


For further information on a Novated Lease please contact us, or you may simply apply online.