Novated Car Lease | Car Loans Finance | Australia

A Novated Car Lease is a consumer car finance option that allows employees to include a car as part of their salary package.

A Novated Lease is an agreement in place between an employee, their employer and a financier. Under a Novated Car Lease, the employer pays the lease payments on behalf of the employee as part of their salary package.

As part of the arrangement, the lease payments, running costs and any applicable Fringe Benefits Tax (FBT) are all deducted from you gross salary (pre-tax) and tax is then calculated on the remaining salary.

A Novated Car Lease can be one of the easiest and most cost-effective ways for an employee to finance a vehicle.

However, make sure you speak to your accountant about your individual financial circumstances and potential tax implications prior to making any decisions regarding Novated Car Leases.