Novated Leases Australia

Brampton Finance helps employees explore novated leasing for a new or eligible used vehicle. We review the proposed finance, salary packaging arrangements and running-cost budget so you can compare the package with other ways of funding the car.

 

What is a novated lease?

A novated lease involves you, your employer and the vehicle finance provider. Your employer agrees to make the lease payments through an approved salary packaging arrangement while the novation is in place. Employer participation and finance approval are required.

 

Depending on the package, deductions may combine pre-tax and post-tax amounts and include a budget for running costs. A lower taxable salary is only one part of the comparison: the finance cost, package fees, tax treatment and end-of-term amount also matter.

 

Compare the whole package

Ask for the vehicle price, amount financed, lease term, repayments, provider fees and residual amount in writing. Then separate the finance costs from estimated fuel or charging, insurance, servicing, tyres and registration.

 

Running-cost budgets are estimates rather than a promise that every expense is covered. Check how actual expenditure is reconciled, how unused balances are handled and what happens if the budget is exceeded. Make sure quoted annual kilometres reflect the way you expect to use the car.

 

We can also explore vehicle finance so you can compare alternatives using the same vehicle, term and usage assumptions.

 

Understand the residual payment

A lease commonly has a residual amount payable at the end. This is a contractual amount, not a guaranteed resale value. Check the amount including any applicable GST and plan how you would meet it.

 

End-of-term options depend on the agreement and may involve paying the residual, selling the vehicle or applying for further finance. Refinancing is subject to a new assessment. Do not assume a sale will cover the amount outstanding, or that another lease will be approved.

 

Electric vehicles and tax treatment

Some electric vehicles can qualify for an FBT exemption, subject to the applicable rules. Eligibility depends on the vehicle and arrangement; an EV badge alone is not enough. An exempt benefit may still be reportable and affect income-tested obligations or benefits.

 

Plug-in hybrids generally ceased qualifying for the electric car exemption from 1 April 2025, with limited transitional arrangements. Confirm the rules applying to the vehicle and lease dates before relying on an exemption.

 

Tax settings can change. Ask your accountant or tax adviser to confirm the effect on your circumstances and check current ATO electric car guidance before committing. Brampton’s role is to assist with finance, not provide personal tax advice.

 

What if you change jobs or finish the lease early?

Check the agreement before signing. If your employment ends or your employer stops participating, payment responsibilities can return to you. A new employer would need to accept a new novation; a transfer should not be assumed.

 

Early termination can involve a payout and fees. Ask for the calculation method and consider whether you could afford the payments without salary packaging. Compare that possibility with your expected employment plans.

 

Who can apply?

Tell us your employment status, whether your employer permits novated leasing, the vehicle you are considering and the proposed term. Used-vehicle age limits, acceptable vehicle types and credit requirements vary between providers.

 

If the vehicle is mainly being acquired for your business, a different product may be relevant. We can discuss business vehicle and equipment finance and the documentation required. Your accountant should confirm the tax treatment.

 

Request a novated lease comparison

Have the vehicle quote, expected annual kilometres, employment details and any employer packaging rules ready. We will explain the finance options and information needed for a quote. Approval and final terms remain subject to the provider’s assessment.

 

Contact Brampton Finance or call 02 9389 1077. You can also browse our finance services.