1300 114 647

Fully Maintained Novated Lease

Novated Leasing allows companies to lease or vehicles on behalf of their employees, with the employee assuming responsibility for the lease and the repayments. Repayments are made from the employee’s pre-tax salary, affording them attractive tax benefits as well as vehicle management and flexibility over the duration of the lease.

There are lease terms from 24 to 60 months available, with a convenient monthly lease payment that may even include running costs such as insurance, registration and even fuel (when running costs are included this is called a Fully Maintained Novated Lease.) Additionally, there is flexibility in setting the residual value of the vehicle*, as well as the option to purchase the vehicle outright at the end of the lease term.

* Subject to Australian Taxation Office minimum residual value guidelines- see FAQ’s

Employees holding a novation agreement with their employer can benefit from the following advantages:

  • Employees can have their choice of vehicle
  • Repayments are deducted from the employee’s pre-tax salary- providing attractive tax benefits
  • Novated Leasing Rates are fixed for the term of the lease
  • Employee keeps equity built up in the vehicle
  • Novated leases are able to be transferred to another employer


What’s a residual value and do you have to have one?

All Novated Leases have a residual value or loan balance at the end of the finance term of the lease. This is an Australian Tax Office requirement. The residual value is a percentage of the cost price and is itemised at the commencement, and doesn’t change over the term. The payments over the term reduce the loan balance down to the residual. The payments each month are structured in this way, so note that it’s not an extra cost, i.e. you are not paying off the car, and then paying a residual.

At the end of the term when the residual is payable you can choose to trade‐in the car, sell the car privately, pay out the residual, or refinance the residual and continue the novation.

What can you buy with a Novated Lease?

Across our suite of lenders the parameters extend to:

  • New cars from a franchise dealer
  • Used cars up to 12 years old from a dealer
  • Used cars up to 12 years old from a private seller
  • New motor cycles from a franchise dealer
  • Used motor cycles up to 12 years old from a dealer
  • Used motor cycles up to 12 years old from a private seller