Salary Sacrificing to Buy a Car

Salary sacrificing allows you to pay for certain goods or services before your income tax is taken from your salary. It's an arrangement between you, your employer and a goods or services provider. By paying from some of your before-tax salary, your taxable income is reduced, meaning you could pay less tax and keep more of what you earn. Depending on your industry, there are few things you could be eligible to salary sacrifice.

When you use salary sacrificing to get a car, it’s known as a novated lease - a convenient, tax-effective way to drive the car you want while simplifying all your running costs.

If you choose an eligible electric car, thanks to the Federal Government's Electric Car discount, all your cars' payments are made before-tax, which means you could take home even more pay. Find out more about the Electric Car Discount.

With Fleetcare, salary sacrificing a car is easy.

1. Choose your car
   Pick the car you want - new, used, or even your current one.
2. Apply and we’ll handle the rest
   Complete your finance application and we’ll set up the novated lease agreement with your employer.
3. Enjoy the drive (and the savings)
   Take delivery of your car and start enjoying the ease, budgeting benefits, and potential tax savings of salary sacrificing with Fleetcare.

Your regular lease payment - which includes finance and all running costs - is then automatically deducted from some or all of your before-tax pay depending on the car you choose. That means one seamless payment covering:

• Car finance
• Fuel or charging
• Registration and insurance
• Servicing and tyres
• Roadside assistance

Because everything is bundled into one easy payment, it’s simpler to stay on top of your regular car costs - from fuel or charging to insurance and servicing. Fleetcare will help you manage your lease every step of the way.

You can also salary sacrifice an electric or plug-in hybrid car through a novated lease - just like a petrol or diesel one.

Eligible EVs may qualify for the Electric Car Discount, allowing for 100% before-tax payments on eligible zero and low-emission cars that meet ATO requirements. That could make salary sacrificing an EV even more affordable and potentially save you thousands more.

Your lease can also bundle charging costs, rego, insurance, tyres and servicing into one easy before-tax payment - plus optional support for home charger setup and access to Australia’s largest public charging network through Chargefox.

With Fleetcare, switching to an EV is simple, cost-effective and ready for the future. Check out our current EV deals to see what’s available right now.