A smarter way to own and run your car
If you're thinking about buying a new or used car, novated leasing could be a smarter way to get behind the wheel. By paying for your vehicle and eligible running costs through your salary, you could save on tax and make managing your car expenses easier.
But how does it actually work, and is it right for you?
What is a novated lease?
A novated lease is a three-way agreement between you, your employer and a finance provider.
Instead of making car repayments directly from your take-home pay, your employer makes agreed payments through your salary packaging arrangement. Depending on the vehicle and lease structure, payments may be made using a combination of pre-tax and post-tax income.
You can choose a vehicle that suits your lifestyle, whether that's a new family SUV, a used car or an electric vehicle.
What are the benefits of novated leasing?
- Tax savings
By paying eligible vehicle expenses from your pre-tax salary, you may reduce your taxable income and save on income tax. Your actual savings depend on your circumstances and the tax treatment of your lease. - Savings on vehicle purchase price
AANT Salary Packaging's national fleet buying power provides access to competitive pricing on new vehicles, potentially helping you save on your next car. - Simpler budgeting
A novated lease can combine vehicle finance and eligible running costs into regular payments, making it easier to plan your expenses. - Flexibility and choice
Choose from a wide range of new and used vehicles, with lease terms suited to your needs. - Local support
With AANT Salary Packaging, you'll have access to an experienced Territory-based team to help you through the process.
How does a novated lease work?
Getting started with AANT Salary Packaging is straightforward.
Choose your vehicle
Select the new or used car that suits your needs and budget.
Get a personalised quote
We will help you understand the finance options, running costs and potential tax savings based on your circumstances.
Set up your lease
Once approved, the novated lease arrangement is established between you, your employer and the finance provider.
Enjoy your vehicle
Your employer facilitates agreed salary deductions, while AANT Salary Packaging provides support with your vehicle and lease arrangements.
What costs can be included in a novated lease?
Depending on your arrangement, a novated lease can include:
- Vehicle finance repayments
- Fuel or eligible EV charging expenses
- Registration and insurance
- Servicing and maintenance
- Tyres and other eligible running costs
Bringing these expenses together can help make vehicle ownership more manageable.
What happens if you change jobs?
Changing employers doesn't necessarily mean you need to give up your vehicle. Depending on your circumstances, you may be able to transfer the novated lease arrangement to your new employer. Alternatively, you may need to make repayments directly or explore other options with your finance provider.
It's important to understand your obligations before entering into a lease.
Is novated leasing right for you?
Novated leasing can be an attractive option if you're looking for potential tax savings, convenient budgeting and flexibility when choosing your next vehicle. However, it's worth considering the total lease costs, applicable tax treatment, residual payment and your employment circumstances before making a decision.
AANT Salary Packaging can help you understand your options and find an arrangement that suits your needs.