What is a novated lease?
A novated lease is an arrangement where an employer agrees to make vehicle lease payments on behalf of an employee from their pre-tax salary. It allows employees to drive a new or used vehicle without paying the full cost upfront, helping manage personal cash flow and providing potential tax advantages.
Benefits of a novated lease
A novated lease allows employees to access a vehicle without paying the full cost upfront, spreading repayments through pre-tax salary deductions. This helps manage personal cash flow while providing access to modern, reliable vehicles and flexible leasing options.
Predictable repayments
Spread the cost of your vehicle over time with fixed, predictable repayments that suit your budget and help you plan effectively.
Potential tax benefits
Using pre-tax salary to make lease payments may reduce your taxable income, providing potential tax advantages.
Preserve cash flow
No large upfront payment is required, keeping personal funds available for other expenses.
Access newer vehicles
Upgrade to a new or used vehicle more easily, with access to modern safety, comfort, and efficiency features.
Flexible terms and options
Choose lease terms that suit your budget and lifestyle, with options for maintenance packages or additional services.
Quick and simple setup
Your employer handles the administration, making it easy to start your novated lease quickly and efficiently.
Things to consider when applying
Categories of vehicles covered
Novated leases can be used for the following purposes and business needs:
Passenger cars
SUVs and 4WDs
Electric and hybrid vehicles
Utes and work vehicles
Eligibility criteria
To qualify for a novated lease, you generally need to meet the following requirements:
Full-time or part-time employment with an Australian employer willing to participate
Satisfactory personal credit history
Being over 18 years of age
Australian citizens, permanent residents, or eligible visa holders
Able to provide Income documentation
Novated lease summarised
Loan amount
From $10,000 up to $250,000+
Loan term
12 to 60 months
Repayment schedule
Weekly, fortnightly, or monthly depending on lender
Purpose
Access a new or used vehicle without paying upfront
Security options
The lease is secured via the finance provider, with repayments deducted from salary
How to apply for a novated lease
Applying for a novated lease is straightforward if you follow these steps:
Step 1:
Determine Your Eligibility
Provide your personal and employment details. We’ll confirm whether your employer participates and review your eligibility for a novated lease.
Step 2:
Finding the Right Lender
Select a new or used vehicle that suits your needs and confirm the lease terms. We compare to see which lender is right for you. We'll then submit your application to the chosen lender and monitor its progress.
Step 3:
Approval and Settlement
Your employer signs the Novation Agreement, and the lease is set up. Lease payments are then deducted from your pre-tax salary, giving you immediate access to the vehicle.
Let's get started