FAQs

The novation agreement with your current employer ends. However, the lease can be transferred to the new employer if they agree to offer this benefit as part of your salary package.

Make an offer to purchase the vehicle and payout the lease (including the residual value amount).

You do not need to use your car for work purposes to be eligible for a Novated Lease. Both work and private use vehicles can be managed under a Novated Lease Agreement.

When you sign up for a Novated Lease you agree to a ‘residual amount’ at the end of the lease. This is a government regulated calculation which equals the amount the vehicle is worth at the end of the lease term.

At the end of the lease you can pay the residual amount and own the vehicle outright, extend the term of the lease for a further period or alternatively you can sell the car and use the funds to pay out the residual.

New: Access our buying power or negotiate with your own dealer

Some used vehicles: There are restrictions on used vehicles, speak to your Novated Consultant for more details

Your existing vehicle: Under a Sale and Leaseback agreement

To own the vehicle you must agree to pay a ‘residual’ which is the amount that remains owing on the at the end of the lease.

Alternatively, your 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.

Depending on your individual circumstances you may be eligible for a second Novated Lease. Speak to your Novated Consultant for more details.

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.

Making repayments this way can also reduce your overall taxable income, to give you more money in your pocket.

A lease arrangement also gives you more options at the end of the lease period. You may pay out a residual and own the vehicle, extend the lease for a further term or upgrade to a new vehicle – all without the hassle of having to dispose of the vehicle yourself.

FleetChoice will calculate the running cost budgets on your chosen vehicle based on how many kilometres you expect to travel each year. If your circumstances change and you find you are driving more or less than expected, we can revise your budget to reflect your current use.

At the end of your lease, we reconcile your Novated Lease and return any unspent budget to your employer, who will process it back to you less PAYG.

You can keep track of your budgets through our online portal.

The FBT regime was developed as a way of taxing non-cash benefits which are received in place of cash wages. The provision of an owned or leased car is an example of such a benefit.

Without the FBT regime, employers could provide non-cash benefits to their employees free of tax. Employers have been made responsible for administering fringe benefits and for payment of the liability.

No. With a Novated Lease arrangement a vehicle can be purchased net of GST which gives you an immediate saving of 10%.

Plus, the running costs of your vehicle are also GST free.

If you go on unpaid leave for any reason (including maternity leave), you will need to continue paying the finance rental and running costs yourself.

Once you return to paid work, your Novated Lease can recommence being deducted by your employer from your pay and you can again access the potential tax savings and convenience.