Novated Leases Australia

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Salary Packaging Your Car the Smart Way – Brampton Finance

A novated lease can be one of the most effective ways to finance a vehicle if you’re an employee who can access salary packaging. Done correctly, it can reduce your taxable income and simplify vehicle running costs into one regular payment.

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Brampton Finance helps Australians arrange novated leases across Australia, comparing options for new and used vehicles, including EVs, and structuring packages that align with your income, employer policy and lifestyle goals.

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Novated leasing isn’t “one-size-fits-all.” The real value comes from choosing the right structure, selecting the right vehicle costs to package, and making sure the numbers stack up compared to alternative finance options.

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What Is a Novated Lease?

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A novated lease is a three-way agreement between:

1. You (the employee)

2. Your employer

3. The finance provider / lessor

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Your employer agrees to make lease payments from your salary (often as part of a salary packaging arrangement). This can include:

• Vehicle finance (lease payments)

• Running costs (fuel/charging, insurance, servicing, tyres, registration)

• Optional management fees (depending on provider)

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The vehicle is typically used primarily for personal use, and you can generally choose a new or used car depending on employer rules and lender policy.

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How Novated Leasing Works (Simple Explanation)

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When you novate a lease:

• The lease repayments are deducted from your salary

• Depending on your package and rules, part of the cost can be paid from pre-tax salary, reducing taxable income

• You may also have some costs paid post-tax to meet fringe benefits requirements

• At the end of the lease term, there is usually a residual value (balloon) you can pay if you want to keep the car

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It’s essentially a structured, salary-based way to finance and run a vehicle.

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Why People Choose Novated Leases

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Australians commonly use novated leases to:

• Reduce taxable income through salary packaging (where applicable)

• Bundle vehicle costs into one predictable payment

• Upgrade vehicles more regularly

• Simplify budgeting for vehicle ownership

• Access special benefits for EVs (where eligible)

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Novated Lease vs Car Loan (What’s the Difference?)

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Novated Lease

• Paid through salary packaging

• Can include running costs

• May provide tax advantages depending on your situation

• Often includes a residual at the end

• Tied to employment (employer participates)

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Car Loan

• Standard finance product paid from your after-tax income

• Running costs are separate

• No salary packaging involvement

• You own the vehicle outright (subject to loan security)

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Brampton Finance helps you compare both options so you choose what actually benefits you — not what’s easiest.

 

Novated Lease Benefits (When It Works Best)

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Novated leasing often works best when:

• Your employer offers salary packaging

• You have stable employment

• You drive consistent annual kilometres

• You want predictable vehicle costs

• You choose a vehicle with strong resale value

• You benefit from available EV novated lease incentives (where applicable)

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Novated Lease Costs (What’s Included?)

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A novated lease package can include:

• Lease repayments

• Fuel or EV charging

• Insurance

• Servicing and maintenance

• Tyres

• Registration

• Roadside assistance

• Management fees (depending on packaging provider)

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Not every package includes everything — we tailor it to match your needs and employer policy.

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The Residual Value (Balloon) Explained

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Most novated leases have a residual value at the end of the term. This is the amount the car is expected to be worth.

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At lease end, you typically have options to:

• Pay the residual and keep the car

• Refinance the residual (in some cases)

• Sell the car and use proceeds to pay the residual

• Upgrade into a new lease

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Understanding the residual is crucial — it affects:

• monthly repayments

• total cost

• your end-of-term options

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Novated Lease Terms (How Long Can You Lease?)

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Common lease terms are 1 to 5 years. The right term depends on:

• your cash flow preference

• employer policy

• your annual kilometres

• expected depreciation

• how often you want to upgrade vehicles

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Electric Vehicle (EV) Novated Leases

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EVs have become one of the biggest drivers of novated leasing interest in Australia.

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Why?

• EVs can deliver significant running cost savings (charging vs fuel)

• Certain EV novated lease structures may provide major tax advantages (subject to eligibility and current government rules)

Brampton Finance helps you:

• compare eligible EV models and pricing

• estimate packaged running costs

• structure the lease to match employer requirements

• ensure the package is compliant and practical

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Who Can Get a Novated Lease?

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You may be eligible if:

• You are an employee (PAYG)

• Your employer offers salary packaging

• You meet lender criteria (income, credit profile)

• The vehicle meets provider policy

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If your employer doesn’t currently offer novated leasing, we can help explain the process so they can consider implementing it.

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What Vehicles Can Be Novated?

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Depending on lender and employer policy, novated leases may apply to:

• New vehicles

• Used vehicles (within age limits)

• Electric and hybrid vehicles

• Passenger cars, some utes (policy-based)

• Vehicles purchased from dealers (and sometimes private sales)

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We confirm eligibility before you commit.

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The Brampton Finance Novated Lease Process

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1. Confirm employer salary packaging policy

2. Vehicle selection and quote assessment

3. Running cost estimation based on your usage

4. Finance comparison and structuring

5. Employer paperwork and novation

6. Delivery, onboarding and ongoing support

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We manage the moving parts so it feels simple.

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Novated Leases Australia-Wide

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Brampton Finance assists clients across:
Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Hobart and regional Australia.

We handle everything remotely and coordinate with your employer and packaging provider.

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Frequently Asked Questions – Novated Leasing

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Is a novated lease worth it?
It depends on your income, employer policy, vehicle choice and kilometres driven. We run comparisons against car loans to confirm.

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What happens if I change jobs?
Usually the lease can be transferred to your new employer (if they allow novation), or you may take over payments personally. Terms vary.

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Can I novate a used car?
Often yes, depending on the car’s age, condition and lender policy.

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Do I have to include running costs?
Not always. Packaging can be tailored.

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Can I pay out the lease early?
Possible, but break costs may apply.

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Speak to a Novated Lease Specialist

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If you’re salary packaging and want to finance a vehicle intelligently, structure matters.

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Brampton Finance helps Australians compare novated leases, run the numbers properly, and build a package that fits real life — not a spreadsheet fantasy.

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Request a novated lease assessment today.

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Get Started Today

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At Brampton Finance, we help podiatrists secure the right mortgage solution — saving you time, money, and stress.

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📍 Office: Level 7, 35 Spring Street, Bondi Junction NSW 2022
📞 Phone: 02 9389 1077
📧 Email: info@bramptonfinance.com.au

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Speak to us today and unlock your home loan benefits.

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