Volvo C40 Recharge Novated Lease

  • Save $1,000s per year with a novated lease on a Volvo C40
  • Pay $0 fringe benefits tax on eligible variants

How much is the Volvo C40 you want to novate?

volvo c40 recharge novated lease
volvo c40 recharge novated lease

What you get with a Volvo C40 novated lease

Consolidating debt

Save $6,191 in GST on the upfront vehicle purchase price

Best match guarantee

Pay $0 GST on packaged running costs

Novated Lease

Eligible Volvo C40 novated leases are exempt from FBT

Shopping around for the right novated lease can save you thousands of dollars in interest and fees.

In our Volvo C40 novated lease guide:









Volvo’s C40 Recharge is an all-electric compact SUV, with manufacturer’s recommended price starting from around $79,000, plus on-road costs for the ‘Plus’ variant.

It’s in the higher end of the electric SUV market in Australia, but importantly it’s priced below the luxury car tax threshold. That makes it eligible for the fringe benefits tax exemption on an electric car novated lease.

Alongside Volvo's first ever electric vehicle model, the CX40, the C40 forms part of a growing range of EVs offered by the Swedish manufacturer. It says it plans to become a fully-electric car company by 2030.

But just how much can Aussie drivers save on a Volvo C40 with a novated lease?

Volvo C40 novated lease pricing

VehicleEstimated drive-away priceUp-front GST savingWeekly novated lease costTotal tax saving during lease

Volvo C40 Recharge Plus





Important: Volvo C40 price estimate as at June 2023. Novated lease cost estimate assumes a buyer in NSW with annual pre-tax salary of $120,000 and 15,000km driven annually. Estimated vehicle running costs include charging, comprehensive car insurance, servicing, registration and tyres.

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How a novated lease on a Volvo C40 works

Acquiring a Volvo C40 through a novated lease means you’ll be able to pay for the car plus more or less all of your running costs through your pre-tax salary. This means big income tax savings.

Through this arrangement (sometimes called car salary sacrificing) you lease the Volvo C40, with the payments deducted by your employer and paid directly to the leasing company each salary cycle.

At the end of the lease you can own your Volvo C40 outright by making the final residual payment.

Hyundai IONIQ 5 running expenses

What car running expenses can be included with a Volvo C40 lease?

The car running expenses you can include in your Volvo C40 novated lease include:

  • Charging
  • Registration and CTP
  • Comprehensive car insurance
  • Servicing
  • Tyres
  • Car washes

Bear in mind some related costs can’t be included. For example, the cost of installing a home battery or fast charger for your Volvo C40 cannot be packaged with your lease.

Tax implications

Volvo C40 variants eligible for the novated lease FBT exemption

Based on current estimated pricing from the manufacturer, the Volvo C40 Recharge Plus is eligible for the FBT exemption on an electric car novated lease. This means considerable further savings.

However, drivers considering the C40 Recharge Ultimate variant are currently not eligible for the exemption. On the road costs take its drive away price above the luxury car tax threshold in Australia.

Pricing for vehicles are subject to change and delivery costs will vary depending on your location. Check with your novated lease provider about your eligibility for the novated lease FBT exemption based on the exact Volvo C40 variant you have your eye on.

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Volvo C40 novated lease FAQ

Particularly if the Volvo C40 variant you’re considering is eligible for a fringe benefits tax exemption, there are significant tax savings available on a novated lease versus a car loan, or even buying the car with cash.

But the saving do vary from person to person and whether it’s worth getting a novated lease on a Volvo C40 will come down to your own situation. You’ll need to consider the overall pros and cons of a novated lease, plus factors like your salary and how many kilometres you drive annually.

The residual payment on your Volvo C40 novated lease will depend on the purchase price of the vehicle and the length of your lease. As an example, the residual payment on a C40 Recharge Plus with a 5-year novated lease (purchase price: $86,316) would be $24,887.60 (inclusive of GST) or 28.13% of the purchase price. This is based on the minimum residual value rates set by the ATO.

Remember you’ll need to use after-tax money to make the residual payment on your Volvo C40 novated lease.

Alternatively, at the end of your novated lease, you will have the option of renewing the lease on the same vehicle. If you do that, you won’t need to make the residual value. Instead, you’ll be refinancing it into the new lease.

Novated lease guides and resources

Find out more about the possible savings, benefits and things to watch out for, plus your range of options with a novated lease in Australia.

Written by

Shaun McGowan founder

Loans Expert

Shaun McGowan

Reviewed by

Sean Callery Editor


Sean Callery



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