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Novated Leasing

Get smart and save tax

More choice • Less tax • More savings
Start the ball rolling on your novated lease

You could save thousands on your vehicle with a novated lease.

So how does it help your business? A novated lease lets you buy a car with your pre-tax wage, not your net take home pay. Your car payments are deducted from your gross wage before you pay tax. That means you’re only taxed on the lesser amount. The result? You pay less tax. Plus you don’t pay any GST on the price of your new car, another win/win! Better for you, better for your business.

What is a novated lease?

A novated lease is a three-way, salary sacrifice agreement between the lender, your employer, and you – and it’s an agreement that works in your favour. The beauty of a novated lease is that it can move with you, even if you change jobs or employer. Your employer makes the lease payments on your behalf from your pre-tax wages, which can then reduce your taxable income. If you change employers, you can simply ask your new employer to transfer the agreement to them.

Here’s how it works:

A regular car loan

  1. You’re paid a gross wage.
  2. Tax is deducted at the nominated full rate.
  3. That becomes your net wage.
  4. Car payments deducted from your net wage.

With a novated lease

  1. You’re paid a gross wage.
  2. Car payments are deducted from your gross wage.
  3. Tax is recalculated on the reduced amount.
  4. You get paid.

That means you pay LESS TAX because you are taxed on the amount after your car payments have been deducted. Is that good for you?

Benefits of a novated lease – Everyone wins

Employees:

  • Save on tax
  • Save the GST
  • No deposit
  • Portable agreement if you change employers
  • Unlimited personal use

Employers:

  • Attract and retain staff, offering them a bigger choice of cars
  • No fleet management or internal lease agreements = less paperwork & hassle
  • No asset liability, so zero impact on the balance sheet
  • Never stuck with unwanted vehicles
  • No residual risk

Start the ball rolling on your novated lease

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