Benefits to Employees

What is a Novated Lease?

A novated lease has become an increasingly popular form of vehicle financing over recent years. It is a 3 way agreement between the employee, their employer and the financer where the employee “novates“ their obligations under the lease to their employer. The employee salary sacrifices some of their Pre Tax income and the employer agrees to be responsible for making the lease payments to the financer.

Because it is still your car, if you change jobs then you can take the Novated Lease and the car with you. At the end of the lease you have the choice to purchase for the residual and keep, sell or trade.

It combines many features of more traditional forms of vehicle finance to deliver benefits for both the employee and employer.

Benefits to the employee:

Greater flexibility with the choice of vehicle
Financing of the vehicle may be paid with pre-tax dollars
 

Benefits to the employer:

  An easy and cost-effective way to add value to an employee’s remuneration package
  We arrange all lease documentation & requirements
  We can integrate with motor vehicle acquisition, fleet management and salary packaging

If you wish to abtain a quote, go to Novated Lease Enquiry

Go to ATO website for FBT car calculator to learn about the taxable value of a car fringe benefit.