Generally speaking, yes, as long as your employer offers Novated Leasing as a benefit or is happy to.

You can include pretty much everything.

Finance, fuel, registration, comprehensive insurance, roadside assistance, all service and maintenance as well as tyres. Or you can pick and choose.

This is a common misconception that you need to be on a high income.

Novated Leasing can offer savings for all employees regardless of their income and is simply the most tax effective way to get into a car.

No, there are two main types of Novated Leases: a non-maintained, or a fully maintained lease.

The difference is one just includes the lease finance costs whereas the other includes all associated running costs of the car bundled into the one payment.

Yes, you can novate a new car or a quality used car through a Novated Lease and you pick the car you want.

Put simply, yes.

A Novated Lease lets you use pre-tax income to pay for your vehicle repayments, which is a tax-effective strategy not available with a standard loan and the reason you will always save more doing a Novated Lease than traditional finance.

Should you change employers during the lease period the lease can be transferred to the new employer if they agree to offer this benefit as part of your salary package.

Alternatively, you are still responsible for the lease payments they would just continue from your after-tax income or you can pay out the lease.

With a Novated Lease you agree to pay a ‘residual’ which is the amount that remains owing on the vehicle at the end of the lease – to own the vehicle outright. The residual amount is determined at the start of your lease.

Alternatively, you can extend the term of the lease for a further period or you can sell the car and use the funds to pay out the residual.

You can choose terms for your lease ranging from 12 to 60 months.

You can choose a car of any make or model to suit your lifestyle, whether it’s a new or used passenger sedan or hatch, SUV or 4WD.

For FBT purposes, a car is designed to carry less than one tonne and fewer than nine passengers. Your employer may stipulate other exclusions.

At the end of your novated lease, you will have a residual amount owing. Minimum residual amounts are determined by the ATO guidelines.

Given the way these residuals are set you will often find that the market value of the car is still higher than the residual at the end of the term.

Please note: If you decide to offer to purchase your car, any payment will attract GST. This applies at lease end or upon early termination.

At the end of your lease, your budgeted expenses will be reconciled, and any remaining payments or refunds will be finalised. Both you and your employer will get a summary.

If there’s an overspend, the difference will be invoiced back to you via your employer.

If an underspend occurs, the difference will be refunded to you via your employer, who will make any required tax adjustments.

Prior to lease expiry you may be given the opportunity to purchase your car, or extend your contract.

What happens if I leave my job?

If you leave your employer, let us know straight away. If the new employer is willing to enter into a novation agreement, you can maintain all existing lease services and simply transfer your lease to your new employer. Your new employer will need to agree to and sign the novation agreement.

If your new employer does not want to enter into a novation agreement, your services, including your Fuel Card and car running costs, will cease and car payment obligations transfer immediately from your employer to you.

You will be required to continue the lease payments from your after-tax income. Alternatively, you may pay out the lease.

If you want to end your novated lease prior to the completion of the agreed lease term this is possible however the final amount owing will be determined at the time by a number of factors including the residual value of the vehicle.