Novated Lease

Is a Novated Lease suitable for me?

A novated lease is simply a three-way agreement between an employee, their employer, and the lender. The employer agrees to make car lease payments on behalf of the employee and deducts the amount from the employees pre-tax salary.

The credit risk is assessed on the employee not their employer; therefore if the employee ceases employment the novated lease is portable and can be “re-novated“ to another employer.

The employee gains from a better after tax position, and the employer gains from not getting stuck with a fleet of cars if employees move on.

The exact tax benefits vary for each individual case so please consult your financial advisor.