If you’ve currently got a novated lease on a gleaming new car then you’re not only are you benefitting from the convenient budgeting but also enjoying the potential tax savings. But perhaps you’ve got a great new job so you’re changing employers, or your life’s changing in other ways – you’re taking maternity leave, or other unpaid leave, and you’re wondering what happens next?
Well don’t worry, here is a guide on what you need to do when you change employers during your novated lease.
Changing employers?
Well, the good news is that it’s entirely possible to keep the lease without disruption, and Fleetcare’s here to help make it as hassle-free as possible for you.
New employer offers novated leasing
You can transfer your novated lease to your new employer’s salary packaging provider. You will likely need to sign a new agreement with their provider and sign a new deed of novation, which is the agreement between you, your employer and the financier. The new salary packaging provider should help you through this process.
New employer doesn’t offer novated leasing
You can ask your new boss if they would be interested in providing novated leasing as a workplace benefit for you and other staff. If they agree, Fleetcare can assist you and your new employer to transfer your lease and set up novated leasing for them.
We’ll make it easy for them to transfer the lease to them, while making the process seamless for your old boss as well. So, the message is if you’re leaving your current employer talk to them and let Fleetcare know in plenty of time as well.
But if they’re not open to salary packaging, then you’ll need to either end salary packaging and continue paying the financier directly, or terminate the lease early. Novated leases aren’t designed to be broken early, so both options may involve early termination fees, which vary depending on your lease terms and how far along you are in the agreement.
Taking leave without pay between employers?
If you’re taking a little leave without pay before starting your new job, then talk to us about pausing or suspending payments temporarily.
Whatever your situation, Fleetcare’s here to make it as hassle-free as possible for you.
Maternity Leave
So, what happens when there’s a happy event looming? Well, if you’re on paid maternity leave, your employer will usually continue to make the lease payments from your before-tax salary. However, if you go on unpaid maternity leave, the situation becomes a bit more complex.
Because you’re no longer being paid by your employer, the novated lease benefit ends during this time. While you’re on unpaid maternity leave, you may be required to make the finance portion of the lease payments yourself, rather than having it deducted from some of your before-tax salary. The lease reverts to a post-tax finance lease for the duration of your unpaid leave.
Extended leave without pay
If you’re taking leave without pay for any reason, say personal reasons, or travel, then the impact on your novated lease is similar. You may need to continue paying the lease payments directly to Fleetcare, so make sure you speak to us first about any potential changes to your payment arrangements to prevent unforeseen fees. If you are not receiving salary from your employer, the before-tax benefit ends, and the lease becomes a post-tax finance lease until your return to paid employment.
So to sum up, changing employers or taking time off work while on a novated lease doesn’t mean the end of the lease, but it does require some careful planning. It’s important to talk to your employer and to Fleetcare about your situation and explore your options.
Whether you're transferring the lease to your new employer, continuing the finance payments independently, or taking a temporary payment break, Fleetcare’s here to help you manage your novated lease during times of change. Understanding your rights and responsibilities will ensure that your car lease continues to work smoothly for you, no matter the circumstances.
If you have any questions or need guidance on managing your novated lease during a career change or leave period, reach out to Fleetcare on 134 333 for help that’s tailored to your situation.