The three-way agreement
A novated lease connects three parties: you, your employer and a financier. You pick the car. The financier funds it. Your employer deducts the lease from your salary and pays it across. That deduction is the clever part.
Where the savings come from
- Pre-tax salary. Part of your lease is paid before income tax, lowering your taxable income.
- GST off the car. You do not pay GST on the vehicle purchase price, up to the claimable cap.
- GST off running costs. Fuel or charging, servicing, tyres and insurance are packaged GST-effective too.
Running costs, bundled
Rather than paying rego, insurance, servicing and fuel separately across the year, they are estimated and rolled into your single lease payment. One number, taken from your pay, covers the lot. You reconcile the estimate over time so you are never over or under paying for long.
The end of the lease
At the end of the term there is a residual, a set final amount. Pay it to own the car outright, trade it in, or start a fresh lease on something new. You choose at the end, not the start.
The fee that is usually hidden
Here is the part the industry does not advertise: most providers earn their margin inside your interest rate. You see a low headline rate and never learn the real cost. We charge one flat $1,500 fee and show you the effective rate, so the true cost of finance is on the table. See it for yourself in the calculator.