FAQs
Straight answers.
Everything people ask before, during and after a novated lease. If it isn't here, call us — we'd rather answer a quick question than have you guess.
The basics
What is a novated lease, in one paragraph?
A car lease in your name that your employer pays from your salary, mostly before tax, for as long as you work there. The car's running costs are bundled in, GST-free. You choose and drive the car; we manage the finance, the budgets and the paperwork. See how it works.
Who is eligible?
Any PAYG employee whose employer offers (or agrees to offer) novated leasing. Casual and part-time employees can be eligible subject to the employer's policy. Sole traders and contractors paid on invoice are not, because there is no employer to novate to.
Does it suit everyone?
No. It suits people who would otherwise finance a car, expect to remain employed through the term, and benefit from pre-tax treatment. The saving grows with your marginal tax rate and is largest on an eligible EV. The calculator compares the lease with buying privately so you can see whether it stacks up for you.
What cars can I choose?
Any new, demonstrator or used passenger vehicle that meets the ATO definition of a car (fewer than nine seats, under one tonne payload), subject to your employer's policy on price, body type and age. You can also novate the car you already own through a sale-and-leaseback.
Do I have to use the car for work?
No. The tax rules assume private use. There are no logbooks and no business-use test.
Can I have more than one novated lease?
Yes, if your employer's policy allows it and your take-home pay remains above their threshold.
Cost and savings
What's included in the package?
Finance repayments, fuel or charging, servicing and maintenance, tyres, comprehensive insurance, registration and CTP, roadside assistance, and our management fee. All running costs are budgeted for your term and kilometres and carried GST-free.
How is the per-pay amount calculated?
Nine steps: on-road cost, residual, finance repayment, running-cost budgets, GST removal, FBT taxable value, the pre-tax/post-tax split, division by pay periods, and the tax comparison. The calculator page walks through each one, and the Disclosure Pack on every quote shows the actual figures.
What is the residual, and who sets it?
The residual (balloon) is the amount outstanding at the end of the term. The ATO sets minimums by term — 46.88% at 36 months, 28.13% at 60 — and we use those unless your funder requires more. It's fixed on day one and never changes.
Are there fees?
Our management fee ($33 a month) is inside the package and shown on every quote. Funders may charge an establishment fee and a monthly account fee, also disclosed on the quote. There are no fees for claims, documents or support.
What if I drive more or less than I budgeted?
Budgets are reconciled each year. Under-spend is refunded through payroll; over-spend is drawn from other budgets first, and you can restructure at any time to change the kilometres.
Does it affect my superannuation?
No. Since 2020, super guarantee is calculated on your salary before any sacrifice, so packaging a car doesn't reduce your super.
Does it affect HELP/HECS, Medicare levy surcharge or family payments?
It can. Income tests for these use "adjusted taxable income", which adds back reportable fringe benefits. For a non-EV lease with ECM the reportable amount is usually nil; for an exempt EV the grossed-up benefit is reportable even though no FBT is paid. The calculator shows the reportable amount so you can factor it in.
Tax and FBT
Why is part of my deduction post-tax?
A car provided through salary is a fringe benefit. Its taxable value under the statutory formula is 20% of the car's base value each year. If you contribute that amount from post-tax pay — the Employee Contribution Method — the taxable value drops to nil and no FBT is payable. The rest of the package comes out pre-tax. Eligible EVs have a taxable value of nil to begin with, so they have no post-tax portion.
Which electric vehicles are FBT-exempt?
Battery-electric and hydrogen fuel-cell cars first held on or after 1 July 2022 whose first retail price was below the fuel-efficient luxury car tax threshold ($91,387 in 2025–26). Plug-in hybrids stopped qualifying for new arrangements on 1 April 2025. Use the checker.
Do I need to keep a logbook?
No. The statutory formula doesn't require one. You do need to submit an odometer reading each 31 March, which takes a minute in the portal.
Who pays the FBT?
Your employer is liable for FBT, but with ECM the amount is nil, so in practice nobody pays it. Your post-tax contribution is what makes that work.
Getting started
How long does it take?
A self-serve quote takes minutes. Consultant confirmation is within one business day. For an in-stock car, e-signature and settlement usually complete within a week; deductions then start on your next available pay run. Cars on order start when they're delivered.
My employer doesn't offer novated leasing. What now?
Send them our employer page or ask us to contact them. There's no cost and very little administration; many employers go live within a week of first contact.
Do I need to find the car myself?
You can, or we can source it. Our dealer network provides fleet pricing on most makes; you're welcome to bring your own quote and we'll use whichever is better.
How long is my quote valid?
Pricing is locked for 30 days once a consultant confirms it. After that it expires and can be re-quoted in one click at current pricing.
Is there a credit check?
Yes. The finance partner assesses the application on its own policy. The platform collects the information once and passes it through; you don't fill in a separate application.
During the lease
How do claims work?
Photograph the receipt and lodge the claim in the portal. Servicing, fuel, charging and registration are approved automatically within budget and reimbursed by EFT the next business day; repairs and tyres need a quick pre-approval. Full table on the driver support page.
Can I change the term or kilometres mid-lease?
Yes — a restructure. Your consultant issues a new schedule and Disclosure Pack; the residual stays the same.
What happens if I change jobs?
The novation with your old employer ends and the lease reverts to you. You pay it by direct debit until you novate it with your new employer, or pay it out. See changing employer.
What if I go on parental or unpaid leave?
Deductions pause when there's no salary. You can pay by direct debit for the period, or your employer can deduct from any paid leave. Tell your consultant before the leave starts and we'll set it up.
Can I swap the car mid-lease?
You can request a vehicle swap from the portal. We provide a break-cost estimate and, if you proceed, a new quote on the replacement car.
End of lease
What are my options at the end?
Renew on a new car, extend the lease on the same car, pay the residual and own it, or return it and let the sale settle the residual. The portal shows all four with the numbers 90 days before the end.
What if the car is worth less than the residual?
If you keep or refinance the car, it doesn't matter. If you return it, any shortfall between the sale price and the residual is payable by you — which is why residuals are set at the lowest lawful level. Historically, most cars sell above their ATO minimum residual.
Can I sell the car privately at the end?
Yes. Pay the residual (the payout figure is in your portal), take ownership, then sell it however you like.
The platform and your data
Is my data stored in Australia?
Yes. The platform runs on Microsoft Azure in Australian regions; data is encrypted in transit and at rest. See security and compliance.
Who can see my quote and salary?
You, your assigned consultant, and — only if your employer has turned on approval gates — the manager and administrator approving the quote. Funders receive the application data needed to assess it. All access is logged.
Can I use the portal on my phone?
It's designed for it. Add it to your home screen from the browser and it behaves like an app, including push notifications and offline access to emergency contacts.
Do you use AI to make decisions about my lease?
No. Pricing and eligibility are deterministic calculations. Where we add assistants — natural-language vehicle search, receipt extraction — they only read data, never write it, and a person or the calculation engine makes every decision.
Still have a question?
Call, email, or send us the numbers from the calculator and we'll come back within one business day.