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Novated Leasing helped Emily save thousands on her car

The challenge: Find a cost-effective solution to upgrade Emily’s car.

Emily, working at AANT, was looking to upgrade her car but wanted a cost-effective solution that wouldn't impact her monthly budget. Although she had heard about novated leasing, she wasn’t sure how it worked or whether it would benefit her.

Like many employees, Emily was paying full price for fuel, insurance, registration, and servicing out of her after-tax salary. With increasing living costs, she wanted to find a way to manage vehicle expenses more efficiently while also reducing her taxable income.

Couple looking at new car

Additionally, Emily wasn’t sure:

  • How much she would actually save compared to financing a car through a bank loan.
  • If she could package all vehicle expenses into one simple payment.
  • Whether her employer supported salary packaging for cars.
     

The solution

Emily reached out to AANT’s novated lease specialists, who provided a personalised quote. The team guided her through the process, liaising with her employer to set up the payroll deductions.

Key benefits Emily received

  • No upfront costs – Emily didn’t need a large deposit to get started.
  • Pre-tax salary deductions – Her car payments and running costs were paid before tax, increasing her take-home pay.
  • GST savings – Emily didn’t pay GST on the car purchase price, fuel, servicing, and insurance.
  • One simple payment – Fuel, rego, servicing, and insurance were all included in a fixed monthly amount.
  • No minimum kilometres required – Emily could drive as little or as much as she wanted.
     

The results

  • $5,000 in tax savings per year – by using pre-tax salary for vehicle expenses.
  • $5,500 saved on GST – by purchasing a new car through a novated lease.
  • $1,000 per year saved on GST for vehicle running costs.

“I didn’t realise how much I was overspending on my car until I switched to a novated lease. The process was incredibly easy, and I’m saving thousands every year. I only wish I had done it sooner!”
— Emily
 

 

Conclusion

For employees like Emily, a novated lease is a smart financial move, helping them:

  • Reduce taxable income
  • Bundle vehicle expenses into one payment
  • Save on GST and running costs

Thinking about a new car?

Start saving thousands on your next vehicle today with novated leasing.

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