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What is a Novated Lease?

A novated lease is a car financing arrangement involving three parties: the employee (lessee), the employer, and a finance company. The employee selects a car and, through a novation agreement, transfers the lease rights and obligations to the employer. The employer then makes lease payments using a combination of the employee’s pre-tax and post-tax salary, potentially reducing taxable income. The employee retains full use of the vehicle and is responsible for the running costs. Novated leases offer tax benefits and flexibility but require careful consideration of individual financial circumstances.

Do I need to have any business use for my car to use this service or save tax?

No, you do not need to be using your car for business purposes to save tax under a novated lease arrangement. The car is your personal vehicle and is registered in your name.

What are the advantages of a Novated lease?

The main advantage of a novated lease is the potential tax savings employees can make under a novated lease arrangement. These savings will be different for everybody and we urge you to contact our experienced team to discuss your options.

The Queensland Government strongly recommends that you obtain independent financial advice prior to entering into, or changing the terms of, a Novated Leasing arrangement.

Can I get a novated lease on a used car?

Yes. You do not have to purchase a brand new car in order to enjoy the advantages offered by a novated lease agreement. Some restrictions will apply to the purchase of a used vehicle. Our team will be able to assist you when you are ready.

What happens if I leave my job?

If you leave your workplace before the lease has expired, simply contact us and we can help set you up a new agreement with your new employer.

What sort of car can I buy?

S.P.A have established relationships with dealers across Australia to offer you the best deals on your new car purchase, with generally very few restrictions on the type and cost of the car, subject to affordability conditions set by the financier.

Is anyone else allowed to drive the car other than me?

Yes, of course. Because the car is yours and registered in your name, who you let drive your car is your decision.

How do I work out my savings?

To get an indication of your potential savings, you can use our online calculator. However, to gain a better understanding of the potential savings you can make, contact our friendly S.P.A. team for an obligation-free consultation.

Am I able to speak to someone directly to ask questions?

Call S.P.A. on 1300 786 664 and our helpful team will be able to assist you in offering the benefits of Novated Leasing to your staff. Alternatively, you can book a one-on-one chat with one of our Business Relationship Managers here.

What do I do if I lose my fuel card?

Contact us immediately on 1300 786 664 we will cancel your old card and reissue you with a new one.

Book a consultation to find out more

Find out how you can start maximising your income with a Novated lease. Click ‘Book Now’ to book a time with your Account Manager to discuss your specific situation.

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DISCLAIMER: The implications of salary packaging a motor vehicle through a novated leasing arrangement, including tax savings, will depend on your individual circumstances. The information in this publication has been prepared by Salary Packaging Australia for general information purposes only, without taking into consideration any individual circumstances. Salary Packaging Australia and the Queensland Government recommend that before acting on any information or entering into a novated leasing arrangement, you should consider your objectives, financial situation and needs, and, take the appropriate legal, financial, or other professional advice based upon your own particular circumstances. You should also read the Standard Novation Agreement, Salary Packaging Participation Agreement and the relevant Queensland Government Salary Packaging and Novated Leasing Information Booklets and Fact Forms available via the Queensland Government Arrangements Directory. The Queensland Government strongly recommends that you obtain independent financial advice prior to entering into, or changing the terms of, a salary packaging arrangement.