Thinking about buying your next car?
Before taking out a traditional car loan, it's worth exploring whether salary packaging could be a more affordable option.
With a novated lease, eligible employees can pay for their vehicle and running costs through their salary, with potential tax benefits along the way.
And you don't have to work for the government or use your car for work to explore the benefits.
A smarter way to pay for your next car
When you own a car, there's more to consider than the purchase price. Insurance, registration, servicing, tyres and fuel all add to the cost of keeping your vehicle on the road.
A novated lease brings these expenses together into regular payments through your salary, making it easier to manage your motoring costs.
Depending on your circumstances, you could also benefit from tax savings and AANT's fleet buying power, which may help reduce the purchase price of your vehicle.
How does salary packaging a car work?
A novated lease is an arrangement between you, your employer and a finance provider.
Instead of paying for your car and running costs separately, your employer makes agreed deductions from your salary to cover your lease payments and budgeted vehicle expenses.
These can include:
- Vehicle finance
- Registration and insurance
- Servicing and maintenance
- Tyres
- Fuel or electric vehicle charging
Depending on your vehicle and circumstances, some costs may be paid from your pre-tax salary, helping reduce your taxable income.
AANT Salary Packaging helps Territory employees explore their options and guides them through the process.
What could you actually save?
The amount you could save depends on your individual circumstances, including:
- The car you choose: its purchase price and eligibility for available tax benefits
- Your annual salary: which influences your potential tax savings
- How far you drive: your estimated annual kilometres and running costs
- Your lease term: how long you choose to lease your vehicle
That's why general savings figures don't always tell the full story.
The best place to start is with an estimate based on your own circumstances.
Frequently asked questions
- Do I need to be a government employee?
No. While many Northern Territory Government and public sector employees salary package through AANT, novated leasing is also available through a range of private sector workplaces. Your employer needs to support the arrangement.
- Do I have to use the car for work?
No. A novated lease vehicle can be used for everyday driving, including commuting, family trips and personal travel.
- Do I need to choose a car before using the calculator?
No. You can enter an approximate vehicle price to explore what might suit your budget. The AANT Salary Packaging team can help you explore vehicle options when you're ready.
- How accurate is the calculator?
The calculator provides an estimate based on the information you enter and the assumptions used. Your final payments and savings may vary depending on vehicle pricing, your circumstances, tax treatment and lease arrangements.