Novated leasing, answered
Every answer here is written to make sense on its own, so it reads the same quoted elsewhere as it does on this page.
The basics
What is a novated lease?
A three-way agreement between you, your employer and a financier. Your employer pays the lease out of your salary, so the cost comes out before income tax rather than after it.
How much can I save?
It depends on what you earn and what you drive. The saving comes from paying with pre-tax salary, so the higher your marginal rate, the larger it is. An electric car under the luxury car tax threshold also avoids fringe benefits tax.
Changing circumstances
What if I leave my job?
The lease is yours, not your employer’s. You can take it to a new employer who offers packaging, or keep paying it yourself.
Employers
Does my employer have to offer it?
Yes. The deduction runs through their payroll, so they need an agreement in place first. If yours does not have one, we can approach them.
Still wondering what it would cost you?
Pick a car and you will have a figure in about a minute. Nothing is committed and nobody calls you until you ask.
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