New to Novated Leases?
Let's break it down for you!
What is a novated lease?
A novated lease allows you to finance a vehicle as part of your salary package and even to roll in all your car's running costs like fuel, tyres, registration, maintenance and insurance into the deal.
This can significantly reduce your taxable income which can add up to big savings come tax time. Novated leasing also gives you the added bonus of exempting you paying GST*(According to ATO limits), saving you thousands off the purchase price. Even if you are using the car for personal rather than business, you are still eligible for novated leasing. If you are looking for the smartest way to get behind the wheel of your next car, look no further than the highly experienced team at, Novated Choice.
Lease
Best value
$69,738
Outright
$79,818
Loan
$93,680
Cost of a Tesla Model 3
Lease vs Outright vs Loan
Lease vs Outright vs Loan
Save even more by buying electric
With fringe benefits tax exemptions (up to the luxury car tax threshold) now available, there has never been a better time to buy an electric car using a novated lease.
The example shown includes the cost of buying and running the Tesla Model 3 RWD over 5 years, compared to using traditional car finance or buying the car outright using cash (based on a driver in NSW with $90,000 pre-tax salary, 15,000 Km driven annually and an interest rate of 8.5% p.a).
Novated leases deduct payments and car running costs from your some of your pre-tax salary, reducing your taxable income. This often leads to big savings come tax time.
Traditionally, novated leasing has been accessible primarily to Australians employed in specific sectors like health, charities, government and corporate. But at Novated Choice, we bring the same great incentives and savings to even small and medium-sized businesses, ensuring that all working Australians can benefit from novated car leasing.
At Novated Choice, the power is in your hands. Choose between a new petrol or electric vehicles from a huge range of small, medium, SUV, sports, luxury or large sedans. You can even novate a demo or used car, as long as it's not too old, or novate your existing car or refinance existing novated leasing vehicles.
At Novated Choice, we use annual kilometers driven to forecast fuel, tyres, servicing, and insurance costs, rolling these expenses into your pre-tax deductions. Our dynamic system also adjusts to lifestyle and work changes such as moving house, changing commutes, or working from home, adapting throughout the lease term to suit evolving needs.
Most Popular Vehicles
Explore our top novated lease vehicles and streamline ownership options
Top Brand Choices
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Novated Choice Calculators
Find out what you could save
Novated Lease Calculator
The Novated Calculator allows you to adjust key figures, gain insight into what you can afford. See how novated leasing can help you take control of your financial future today
EV Lease Calculator
You've likely heard about the large savings available through the government initiative that promotes the adoption of novated lease electric vehicles as a means of reducing Australia’s carbon emissions. Learn how much you can save using the Novated Choice Electric Vehicle Calculator.
Novated lease end
What happens at the end of my lease?
End of your novated lease? Don't worry. With
Novated Choice, you choose your own happy ending
Upgrade to something new
Keep your payments steady while upgrading to a newer car.
Adjust your lease
Refinance your existing lease to lower the remaining payment.
Make it yours
Prefer to own your novated lease car outright? Pay off the residual amount of your novated lease and call it yours. With our reliable novated lease provider, you'll likely find the residual is less than the car's value at the end of the lease which means you could sell the novated lease car, clear the residual, and enjoy a tax-free bonus—potentially several thousand dollars!
GET IN TOUCH
Drive smarter, save more. Get started today!
Drive smarter, save more. Get started today!
Frequently asked questions
You can put almost any car under a novated lease: New, used, even currently owned, as long as it is under ten years old at the end of the lease term (exceptions can be made on referral).
Types: Petrol, hybrid, electric, plug-in hybrid with a carrying capacity under one tonne. Cars cannot be used for rideshare, taxi or delivery or carry 9 passengers or more.
Just like other forms of car finance, novated leasing involves regular payments over a fixed term, with a residual payment due at the lease's end. But unlike other forms or finance leases, these payments come out of your pre-tax salary, reducing your taxable income. You also save GST on the car as it is not included in the amount financed (up to a maximum amount) and your running costs are budgeted and paid in one easy regular payment.
Almost everything involved in having a car: finance, insurance, registration, fuel, charging, tyres, and servicing. We also help with sourcing the car and end-of-lease options.
You can lease a car anywhere between one to five years. Novated leasing is a fixed-term lease and not designed to be broken early, otherwise you may incur additional fees and could end up paying more than the market value of the car.
No. You can drive as little or as much as you want. Estimated distance driven is only important for forecasting running costs.
There are three options available:
1. Contact us to adjust the budget
2. Unused money can be sent back to you via your employer payroll at the end of the novated lease
3. Money can be rolled over to you if you intend to get a new novated lease car or to extend your lease
There are two options available:
1. We can make a one-off request to your payroll to have an additional amount deducted from your pay
2. We can make an ongoing adjustment to your running cost budget
No. The post-tax component (Employee Contribution Method (ECM)) removes the need to pay FBT.
The ATO does not allow a novated lease to be paid down to zero. The amount you need to pay at the end of the lease is calculated according to ATO rules applied to amount financed.
There are three options available to you:
1. Pay the balloon payment plus the remaining lease payments and buy the car outright
2. Pay lease payments directly to financier and running costs with post-tax dollars
3. We can organise transfer of the lease to new employer if they allow this
There are three options available to you:
1. Upgrade to a new car and start a new novated lease
2. Pay out the residual amount and own the car
3. Lease the same car again (re-lease) for another period of time
No. You can go to any licenced and registered service provider. Simply attach your receipt to your on-line portal as instructed and you will be refunded for the cost of works conducted.
Yes. Not only do you get all the other benefits of a novated lease, such as saving the GST on the purchase price of the car and packaging the running costs, under the government’s EV discount, your electric car will not attract fringe benefits tax (up to the luxury car tax threshold). This means the whole novated lease payment is made from your pre-tax, rather than post-tax salary, reducing your taxable income.
