NOVATED LEASE

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What is a Novated Lease?

A novated lease is a finance lease agreement between an individual (employee), their employer and a finance company. In this case, the employer makes monthly repayments on your behalf via a salary sacrifice program or car allowance.

Benefits for the employee:

No deposit payable

  • Flexibility with the choice of vehicle to meet your business & personal needs
  • You can take the vehicle with you when you change jobs
  • Tax benefits as financing may be paid with pre-tax dollars (remembering there may be Fringe Benefits Tax to consider)

Benefits for the employer:

  • An easy way to add value to an employee’s remuneration package
  • The vehicle is the responsibility of the employee so there are no costs to the employer associated with disposal of the vehicle should the employee leave.

* We recommend professional advice be sought from your accountant, before proceeding with any finance arrangement.

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