FAQ: What are the benefits of a Novated Lease for an employee?
What are the benefits of a Novated Lease for an employee?
Novated Leasing, commonly called salary packaging a car, means that your car lease payments are deducted from before-tax wages by your employer. Compared with paying your car from your net salary after tax, you generally pay less tax - resulting in more disposable income. It's just like getting a pay rise, and it doesn't cost your employer a cent!
Novated Leasing can also save you time and money when it comes to buying your chosen vehicle, purchasing fuel, servicing and maintenance, reporting and much more.
Generally, Novated Leasing offers you greater flexibility in the type of vehicle you choose to drive. Rather than having to select from a limited range of company car options, you're able to choose your own vehicle that meets your budget and lifestyle needs (subject to your employer's vehicle policy).
Finally, under a Novated Lease, if you change employer you don't need to hand your car back - your Novated Lease can be transferred to a new employer, or into your own name if required.