FAQs

The employee selects the vehicle for a Novated Lease within the criteria as set by the ATO, the value agreed to by the employer and subject to the vehicle being suitable security by a lender.

Interest rates on Novated Lease for second-hand cars is subject to individual lender assessments of the credit position and score of the business.

The amount required to be salary sacrificed with Novated Lease includes the monthly lease payments, insurance, registration and servicing costs of the vehicle.

If an employee with a salary sacrificed Novated Car Lease leaves the employer prior to the end of the lease term, they need to come to an arrangement with the employer re ownership of the vehicle. The employee may be required to pay-out the outstanding repayments and residual to take ownership.

Vehicles subject to Novated Leasing must meet Australian Taxation Office guidelines for salary packaging. In addition, the employer must agree to the amount that is spent on the vehicle and the lender must approve the amount for the financing.

Novated means transferred to. In the case of a Novated Lease, the loan is transferred from the employee to the employer.

A residual can be included in a Novated Used Car Lease. Residual amounts can be subject to lender and ATO guidelines.

Terms of up to 7 years are available for vehicle leasing. Exact terms will depend on lender approval for a specific used vehicle.

Both employer and employee must agree to a Novated Lease before the finance arrangement can proceed.

A Used Car Novated Lease is taken out in the name of the employer business.

No. Employees on a range of salary bands may consider salary packaging.

At the end of a salary packaging leasing term, when the employer has finalised the payments and residual, the vehicle is transferred into the name of the employee.