Current Deals On Novated Lease Vehicles

A novated lease is a salary packaging arrangement where an employer deducts the cost of a used or new car and its associated running costs from your pre- and post-tax salary. This arrangement can provide significant tax savings and streamline budgeting for your car expenses. Click here to learn more about novated lease benefits.

A novated lease deal typically covers vehicle finance, registration, comprehensive motor vehicle insurance, fuel, maintenance and servicing. Car running costs are also included in the novated lease arrangement to help you manage the ongoing expenses of vehicle ownership with fixed lease payments.

A novated lease is calculated based on the vehicle purchase price, lease term, residual percentage outlined by ATO guidelines, and estimated running costs. Factors like your pre-tax salary, individual circumstances and the employee contribution method (ECM) can affect the final weekly cost.

By salary sacrificing through a novated lease, you reduce your taxable income, leading to potential income tax savings. GST savings are also applicable on the vehicle purchase price and ongoing running costs. For eligible electric vehicles, Fringe Benefits Tax (FBT) exemptions may further enhance your savings estimate.

The employee contribution method (ECM) means paying some of your lease costs, like fuel or maintenance, using your post-tax salary. This helps lower the amount of Fringe Benefits Tax (FBT) you need to pay, potentially increasing your overall savings. The benefits of ECM depend on your personal circumstances, including your gross annual salary and the residual percentage value of the car at the end of the lease.

Yes, eligible electric vehicles, including plug-in hybrids* like the BYD Sealion 6 or extended-range EVs like the Tesla Model series, may qualify for novated lease deals. FBT exemption applies to certain EVs that meet the following criteria, such as staying under the luxury car tax threshold.

*PHEV eligibility ends on 31 March 2025

Novated lease deals are available for a variety of passenger vehicles, such as the Mitsubishi Outlander, Mazda CX series, Ford Ranger, MG ZS, and Isuzu MU. However, commercial vehicles, including vans and minibuses, are not eligible for novated leasing. The pricing, range and availability of vehicles depend on your lease term and personal preferences.

At the end of the lease, you can choose to pay the residual value (as outlined by the assumed residual percentage), refinance, or trade in the vehicle. The residual percentage outlined in the novated lease agreement adheres to ATO guidelines.

At S.P.A., we are proud to provide a transparent and accurate service for all our novated lease options. We highly encourage every applicant to seek independent financial advice to ensure the novated lease deal suits your individual circumstances, including income tax implications and potential tax savings. Understanding the savings estimate based on your situation can help guide your decision-making process.

Budgeted running costs, such as registration, re-registration, servicing, and fuel, are estimated at the start of the lease. These costs may change due to factors like on-road costs, inflation, or changes in fuel prices. While these variable costs can fluctuate, your fixed repayment amount remains consistent throughout the lease term. If running costs increase significantly, you may wish to adjust your budget or make additional payments to cover any shortfalls.

Contact Salary Packaging Australia to request a vehicle quote. We will provide details on vehicle pricing, GST saving benefits, and a detailed savings estimate for your novated lease deal.

Yes, comprehensive insurance, maintenance, and registration can be included in a fully maintained novated lease package. This provides peace of mind by covering essential vehicle-related costs in one streamlined arrangement.

With a fully maintained package, you receive:

• Comprehensive Insurance: Your vehicle is protected against accidents, theft, and other potential risks.
• Maintenance: Regular servicing, repairs, and replacements, such as tires and batteries, are included, ensuring your car stays in optimal condition.
• Registration: Annual registration fees are managed as part of the lease, saving you the hassle of separate payments.

By bundling these expenses into a novated lease, you reduce unexpected out-of-pocket costs and simplify budgeting throughout the lease term.