How does it work?
They often say three’s a crowd, but with a novated lease, you could use your job to get a better deal thanks to your employer. Pay for your new or used car and its running costs from your pre-tax salary and reap the benefits of saving on tax and GST. Crazy you hadn’t heard of it before right?
Why novated leasing?
Save on GST
Pay no GST on the purchase price of your vehicle - saving you 10% on the price of your car.
Save on Tax
Your car repayments and running costs are paid mostly with pre-tax dollars so you enjoy a lower tax rate.
Save on Fuel
Enjoy $0.04 off per litre with your own fuel card.
Under a novated lease, you purchase the vehicle and then “novate” the finance agreement to your employer. As a result, your employer agrees to take on your obligations (repayments) to the finance company, and is responsible for all of the agreed vehicle expenses which are deducted from your remuneration as part of your salary packaging arrangement. You agree to "salary sacrifice" a portion of your earnings in return for the benefit of a car equal to that amount.