Novated Leasing for Employees

See the impact on your take-home pay

The potential benefit of a novated lease can be seen in your take-home pay compared to paying for a car from after-tax income.

Here’s a quick example:

If you’re earning $85,000 annually and choose a car worth around $39,700 on a 5-year novated lease, driving 15,000km per year:

• Your take-home pay could increase by $43 per week
• This could add up to $2,236 per year
• Over 5 years, that's $11,180 more in take-home pay

Disclaimer: Income tax savings are dependent on your taxable income and individual tax status. GST savings are dependent on your employer’s policy and accounting treatment of GST. Figures may vary based on individual circumstances and are subject to change.

Why more employees are choosing novated leasing

Novated leasing is becoming a popular way for employees to manage their car expenses more simply and potentially more cost-effectively.

With a novated lease, you could:

• Reduce your taxable income and pay less income tax
• Save GST on eligible car and running costs
• Access fleet pricing on new cars through Fleetcare
• Make budgeting easier with more predictable car expenses
• Drive a new car more often through upgrade opportunities
• Spend less time managing multiple car-related bills
• Take advantage of potential EV incentives, including the Electric Car Discount for eligible cars

How novated leasing works

A novated lease is a finance arrangement between you, your employer and a provider like Fleetcare.

What’s included in a novated lease?

A novated lease can include a range of car-related expenses in one package.

This may include:

• Finance for a new, used or eligible existing car
• Fuel or charging
• Registration and insurance
• Servicing
• Tyres and driver support
• Ongoing support from Fleetcare

Is a novated lease right for me?

A novated lease may suit employees who want a more convenient way to manage their car costs and are considering a tax-effective way to structure car expenses.

It can be a good fit if you:

• Want to bundle your car and running costs into one regular payment
• Prefer predictable, structured budgeting for your car
• Are considering upgrading to a new or different car
• Drive regularly and want a more streamlined way to manage expenses
• Are interested in salary packaging benefits through your employer

Before deciding, it’s important to understand how your lease structure, driving habits and employment situation may affect the overall outcome.

Fleetcare can help you assess whether a novated lease suits your needs - find out if a novated lease is right for you.

Check if it's right for me

Driving electric could save you more

You can also get an electric or plug-in hybrid car through a novated lease.

Eligible EVs may qualify for the Electric Car Discount, which allows:

• 100% before-tax payments
• Opportunity for greater savings over the life of the lease
• Lower running and maintenance costs

This could make electric cars more affordable and easier to manage, while also helping reduce fuel expenses and supporting a lower-emissions lifestyle - see how electric novated leasing works in practice.

With access to newer technology, advanced safety features and a growing public charging network, many employees are choosing EVs as a practical and cost-effective option through a novated lease.

Learn about EVs

Am I eligible for a novated lease?

Many Australian employees may be eligible for a novated lease, although eligibility can vary depending on your employment situation and employer.

You’ll generally be eligible if you:

• Are a full-time or part-time employee
• Have completed your probation period
• Receive a regular salary
• Work for an employer that offers novated leasing

You may still be eligible if you are:

• A contract or casual employee
• New to your role
• Working for an employer without an existing novated lease program

Your eligibility can also depend on factors like your income, employment stability and the type of car you choose.

If you’re unsure, Fleetcare can help you understand your options and whether a novated lease could work for you - check your novated lease eligiblity with Fleetcare.

For more novated leasing FAQs, visit our frequently asked questions page.