If you’ve completed your probation period at work and your employer is happy to enter into the agreement with us, you’re eligible.
Yes. It’s a salary sacrifice arrangement, so your employer must be involved.
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 10 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.
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.
Yes. We always try to find a competitive insurance quote on your behalf, but it is possible to source your own insurance. Just bear in mind that standard car insurance may not provide you the same level of cover like Guaranteed Asset Protection or Lease protection Insurance. If you're not sure about your insurance options, just speak with one of our friendly consultants.
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 %
When you come to the end of your lease, you have four options:
- Trade in, trade up - Trade in your existing vehicle to Fleetcare (or sell it privately) and upgrade your car with a new lease.
- Double down - Double your savings by refinancing your existing vehicle and leasing a new vehicle at the same time.
- Refinance - Refinance your residual payout for another lease term.
- Payout - Payout the residual amount and the car is yours.
Need more information about what to expect at the end of your Fleetcare Novated Lease?
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.
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.