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I am... an employee

looking to save money on buying and running my next car with a novated lease.

What is a novated lease?

A novated lease is a hassle-free vehicle leasing solution that saves you money on everything from vehicle finance, to fuel, maintenance, and roadside assistance.
It’s a salary sacrifice arrangement, which means your vehicle and associated running costs are bundled into a single payment, which is deducted from your pre-tax salary. You'll enjoy great fleet discounts, GST savings and a reduced taxable income, along with the convenience of a single payment for all vehicle expenses.

How does it work?

A novated lease is a salary sacrificing option that lets you pay for a new or used car of your choice from your pre-tax salary. It’s an agreement between you, your employer and a novated leasing company, like Fleetcare.
Once you choose your car, Fleetcare arrange the best price for you through our range of dealer networks. You complete a finance application and Fleetcare arrange a lease agreement with your employer for the vehicle. Your employer then deducts the cost of the lease from your pre-tax salary.

Does your employer already have a salary packager? We can still help!

We’re with you

No matter how much you earn, how far you drive or where you live, Fleetcare can design a novated lease to suit your life and save you thousands. Always going the extra mile, our dedicated team are on hand to manage all aspects of your lease to make sure everything runs smoothly.

Since our establishment in 1989, we are still 100% Australian owned and operated. We understand the needs of Australian drivers and are perfectly placed to help.

How will novated leasing save me money?

  • Pay less tax by paying for your new car and related expenses from your pre-tax income.
  • You’ll receive fleet discount pricing on the vehicle cost and ongoing expenses.
  • Half price car washes and the ability to earn BP Rewards points.
  • You pay no GST on the purchase price, or ongoing expenses like fuel and servicing – that’s a 10% saving right there!
  • Smooth your expenses and never have to worry about finding the money for new tyres again - it’s all included in your fortnightly or monthly payment!

Excellent service

"Initial purchase of the vehicle was seamless. The communication throughout the 6 years was excellent. Having the same account manager made the lease experience more personal and easier to deal with. Nothing was ever too hard and all requests were dealt with or answered promptly. Excellent service, thank you."
NINO, Airservices Australia

Novated Lease Lifecycle

novated lease lifecycle

Frequently Asked Questions

How do I know if I’m eligible for a novated lease?

If you’ve completed your probation period at work and your employer is happy to enter into the agreement with us, you’re eligible.

Can I only take out a novated lease agreement through my employer?

Yes. It’s a salary sacrifice arrangement, so your employer must be involved.

Do I have to buy a new vehicle to enter into a novated lease agreement?

No. You can novate a used car however, there maybe restrictions depending on the age of the vehicle (for example, if the vehicle will be older than 7 years at the end of the lease) but all used vehicles are assessed on a case-by-case basis. You can even novate your existing vehicle.

I have a trade-in vehicle. Can it come off the purchase price?

With Fleetcare, you can trade-in a vehicle as part of the process for your Novated Lease, however the trade-in funds cannot be used to reduce the lease principle.

Can I include accessories in my novated lease?

Of course you can! All Fleetcare Novated Lease customers receive a vehicle protection accessory pack included in their lease package. Our accessory packs provide great value for money and all the protection needed to keep your vehicle’s interior and exterior in great condition. For those that need that little bit more, we offer a range of vehicle protection options designed to enhance the safety and enjoyment of your vehicle. For a full list of options, click here.

If you have additional accessories or add-ons you want to include, Fleetcare can source these, as well as negotiate the best price with our fleet discounts.

Can I choose the insurance company? I might be able to get a better deal elsewhere.

Yes. We always try to find a competitive insurance quote on your behalf, but it is possible to source your own insurance. Whether you source your own comprehensive insurance or take out a Fleetcare insurance policy, you do have the opportunity to include our additional protection cover options like Guaranteed Asset Protection and extended warranty. If you're not sure about your insurance options, just speak with one of our friendly consultants.

How are residual values calculated?

The residual value is set by the Australian Tax Office and depends on the total amount financed and the term of the lease.

Term of Lease  Residual %  
12 Months  65.63%  
24 Months 56.25%  
36 Months 46.88%  
48 Months 37.50%  
60 Months 28.13%  
What happens at the end of my novated lease?

When you come to the end of your lease, you have four options:

  1. Trade in, trade up - Trade in your existing vehicle to Fleetcare (or sell it privately) and upgrade your car with a new lease.
  2. Double down - Double your savings by refinancing your existing vehicle and leasing a new vehicle at the same time.
  3. Refinance - Refinance your residual payout for another lease term.
  4. Payout - Payout the residual amount and the car is yours.

Learn more about what to expect at the end of your Fleetcare Novated Lease.

How does Fringe Benefits Tax (FBT) work?

Motor vehicle Fringe Benefits Tax (FBT) applies where a vehicle is supplied by an employer to an employee or their associate, and is available for private use.

As the employer provides the fringe benefit, they are liable for the FBT payable, however under salary sacrifice arrangements, where the employer should be no worse off than if they had offered remuneration in the form of straight salary, the employer generally charges the FBT payable to the employee’s salary package pre-tax.

You can also make post-tax, GST inclusive employee contributions which reduce the taxable value and in some cases, can result in no FBT being payable at the end of the FBT year. The taxable value of the fringe benefit is calculated using either the statutory fraction or operating method.

Fleetcare's FBT service provides a calculation under each method and identifies the most cost effective method. You should always consult with a tax professional to ensure the best outcome for your personal circumstances.

How much can I save on a novated lease compared to a car loan?

To see how much money you could save with a Fleetcare Novated Lease, check out our Novated Lease calculator.

What is a self-managed novated lease?

A self-managed novated lease is a salary packaging option that lets you find the best vehicle purchase price, select the financier with the most competitive interest rate, as well as organise your own insurance. Once the lease is set up, your employer’s nominated salary packager will manage the running costs of the vehicle.

Can I have more than one novated lease?

Yes, of course you can! You can double the benefits of a novated lease, by leasing additional vehicles for household. We call this process 'multi-lease'.

I have a novated lease with another provider. Can I transfer my lease to Fleetcare?

Yes, of course you can! This process is also known as a re-novation. It’s important to us that we make the transition for you as smooth and hassle-free as possible. Speak with our friendly team about the process on 134 333, or learn more about a lease transfer here.

My employer already uses a salary packager. Can I still novate a car through Fleetcare?

Yes, of course! If your employer already has an arrangement with a salary packager, you can still access all the great benefits of a Fleetcare Novated Lease. Learn more about novating through a salary packager.

Think a Novated Lease is right for you?

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Disclaimer: Income Tax savings are dependent on your taxable income and individual tax status. GST savings take into consideration your employers accounting methods and internal policies around GST, and passing on input tax credits.