Why Offer Novated Leases to Employees?

ChatGPT said: Offering novated leases is a smart, cost-effective way for businesses to attract and retain talent by helping employees save on car ownership through tax and fleet discounts. With minimal admin effort and added benefits like EV support, it's a practical perk that boosts satisfaction and aligns with financial and sustainability goals.

Why Offer Novated Leases to Employees?

In today’s competitive job market, employers are always looking for ways to stand out — not just with salary, but with meaningful, cost-effective benefits. Novated leasing is one often-overlooked but highly attractive perk.

Offering novated leases can help you attract top talent, retain valuable team members, and offer real savings to your workforce — all without adding overhead to your business. At a time when cost-of-living pressures are front of mind, novated leasing helps employees lower the cost of owning and running a car — through before-tax payments, GST savings, and fleet discounts.

So, find out why more businesses are adding novated leases to their employee benefits programs, and how Fleetcare makes it easy to offer.

1. It’s a benefit your team will actually use

   When done right, a novated lease is one of the most practical and valuable perks a business can offer. Employees can use their before-tax salary to lease and run a car — which could mean lower income tax and access to fleet-level discounts on a new car, as well as potential GST savings for fuel, maintenance, insurance, and more.

   Staff can choose a new, demo, used or eligible existing car plus, and bundle all the regular running costs into one regular payment from their salary. Better yet, you don’t need to be on a high salary to benefit.

2. It boosts retention — and reduces hiring costs

   According to AON Insights, 32% of employees cite benefits as a reason to stay with their organisation and 29% cited them as a reason to leave.

   That’s a big deal when you consider the average estimated cost of employee turnover in Australia can range from 30% to 150% of their annual salary, depending on seniority and training time.

   Offering novated leases as part of your benefits program helps boost employee satisfaction and loyalty. At Fleetcare, we often hear feedback that it’s the “thing that sealed the deal” for many staff.
    

3. Minimal Cost, Minimal Effort for Your Business

   This is the part many businesses don’t realise: offering novated leases is not costly to a business.

   Fleetcare makes setup and management easy. We handle everything — from quoting and compliance to employee education and payroll coordination — so there’s minimal admin burden on your HR or finance team.

   Employees cover the cost themselves through salary packaging. You simply deduct the agreed amount from payroll and remit it to Fleetcare. Additionally Fleetcare support end of FBT year reporting.

   If you are in the mood to add up potential costs, Business Victoria has a handy calculator to add up the potential costs of employee turnover.

4. You’ll look good as an employer (and mean it)

   Offering novated leases sends a message that you care about your people and their financial wellbeing. It’s a powerful recruitment and brand positioning tool, especially as Australians become more benefits-conscious.

   According to SEEK, workplace culture is a top priority for Australian job seekers, with 73% saying it matters—and 61% saying they'd turn down a job if the culture wasn’t right. Offering meaningful benefits like novated leasing can show your business values its people and help your job ad stand out from the pack.

5.  It’s good for your sustainability goals

   If your business has ESG or environmental targets, novated leasing can help support them.

   With Fleetcare, your employees can use the Electric Car Discount (FBT exemption) to lease eligible EVs — potentially saving thousands while reducing their emissions. Fleetcare’s consultants are also available to support staff through the transition to low- or zero-emission vehicles, including home charger reimbursements.

Why Fleetcare?

We’ve helped thousands of Australian businesses implement novated leasing programs seamlessly, with:

• Dedicated account managers for your company
• Employee education (including info packs, Q&A sessions, and co-branded materials)
• No payroll disruption — we align with your existing cycles
• A one-stop shop for your business’ fleet and novated needs

We’re also Australia’s largest independent fleet management company, which means we can pass on the kind of buying power and expertise that makes a real difference for your staff.

Want to offer novated leasing to your team?

Fleetcare makes it easy to get started. Whether you’ve got one car or a growing fleet, we’ll help you roll out a novated lease offering that boosts retention, supports financial wellbeing, and gives your business a competitive edge.