FAQs

Find answers to common questions about finance, loans, and leasing services at Jade Finance. Our FAQs cover a wide range of topics to help you make informed decisions.
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Novated Lease Residual Values FAQs

  • The ATO residual values apply to all types of vehicles.

  • A residual amount is due to be finalised at the end of the leasing term.

  • The ATO has the percentages for residual over different terms, they are:

    • 1 year lease term, 65.63% residual;
    • 2 year term, 56.25% residual;
    • 3 year lease, 46.99% residua;
    • 4 year lease term, 37.5% residual; and
    • 5 year lease, 28.13% residual.

  • Interest applies to the full amount of a Novated Lease including the residual.

  • The residual value is a percentage of the value or price of the vehicle over varying lease terms. The residual can be calculated prior to applying for finance or advised with a quote.

  • A residual is the percentage of the price of the vehicle that is set aside for payment at the end of the term. It is set by the ATO.

  • The ATO sets minimum fixed percentages for residuals which typically are not usually negotiable. But some lenders may negotiate higher residuals.

  • The residual can affect the amount payable each month.

  • Yes, GST is applied to lease payments and the residual.

  • The residual value owing can be paid from after-tax not salary sacrificed funds or refinanced. Another option is to hand the vehicle back to the lender.

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