We’ve rounded up some of the best novated lease deals available on popular vehicle models in Australia. The estimates show the up-front GST discount on the vehicle with a novated lease, the weekly cost (which includes most car running costs), and the overall tax savings over the life of the novated lease.
To get an estimate based on your situation, or for a different vehicle, you can request a personalised quote.
Get personalised pricing for a Mazda BT-50 novated lease.
*Vehicle price estimates as at June 2023. Pricing assumes a buyer in NSW with annual pre-tax salary of $120,000 and 15,000km driver per year. Car running costs include fuel/charging, comprehensive car insurance, servicing, registration & CTP.
A novated lease offers big tax savings, but you’ll still end up with a better overall deal if you lock in a good purchase price on the vehicle. Some novated lease companies will help you find a car and may be able to negotiate a discount for you. But remember you can also shop around car deals yourself.
Another option is to get a novated lease on a used car. The advantages are pretty much the same and you could avoid paying the new-car premium.
You’ll save more overall if you package your car running costs into your novated lease deal through what’s known as a fully-maintained novated lease. This means as well as paying for the car itself, you’ll get a GST discount and save income tax on costs like fuel/charging, insurance, servicing, registration & CTP. This is a big factor in the plus column when weighing up the novated lease pros and cons.
While it can be convenient to have all your vehicle running costs included in the lease payments, make sure you're not paying over the odds. For example, your lease provider may have a preferred insurance partner. But it’s usually possible to sort the insurance yourself and then claim the cost back from your novated lease budget so you still get the tax benefit.
An electric vehicle novated lease offers major extra savings if the vehicle is below the luxury car tax threshold. This is because the lease will be exempt from fringe benefits tax. EVs generally have lower running costs anyway.
If you’re getting a novated lease, don’t make the mistake of overlooking the interest rate on the finance. Ask your provider about the rate you’ve been quoted for and compare it to what other novated lease companies can offer, and what car loan rates are available. If your quoted rate seems high by comparison, ask why.
Novated lease companies usually charge a weekly or monthly admin fee. It’s unlikely you’ll be able to avoid this fee entirely but if you can, keeping this as low as possible, will mean a better novated lease deal overall and the more you'll save compared to buying a car with a car loan.
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.