A novated lease is a salary packaging arrangement that allows you to finance a vehicle using your pre-tax income. Your employer makes the lease payments on your behalf, reducing your taxable income and helping you save on tax while driving the car you want.

Most full-time and part-time employees in Australia can qualify for a novated lease if their employer offers salary packaging. If you receive a regular salary and pay tax through PAYG, chances are you’re eligible.

Not necessarily. You can novate both new and eligible used vehicles, including electric and hybrid models. However, most leases apply to vehicles under a certain age to meet lender and FBT requirements.

A novated lease typically bundles vehicle finance, registration, insurance, servicing, fuel, and tyres into one regular payment. This makes budgeting simple and ensures all running costs are covered pre-tax.

You pay for your vehicle and running costs using your pre-tax income, which can significantly reduce your taxable income. This makes novated leasing one of the most tax-effective ways to own a car in Australia.

Under current Australian tax rules, eligible EVs and plug-in hybrids are exempt from Fringe Benefits Tax (FBT), making them even more cost-effective under a novated lease. Royston Finance can help you find the best EV lease options.

The residual value is the balloon payment at the end of your lease term, as set by the Australian Tax Office (ATO). You can pay it to own the vehicle, refinance it, or trade it in for a new lease giving you flexibility at the end of your term.

Novated leases typically run for 2 to 5 years, depending on your financial goals and employment situation. Shorter terms mean higher repayments but lower interest, while longer terms offer lower monthly costs.

Yes, however fees may apply depending on your lender. If you need to end your lease early due to job change or other reasons, Royston Finance can help you refinance or settle the lease in the most cost-effective way.

In most cases, yes. If your new employer allows salary packaging, your existing novated lease can be easily transferred, ensuring you keep your vehicle and tax benefits.

Yes. Even if you don’t drive long distances, the tax savings and convenience of a novated lease can still outweigh a standard loan, especially when bundling insurance, registration, and servicing costs.

Absolutely, subject to visa subclass and expiry.