Our customer service team welcome your questions because we know that your needs are never going to be exactly the same as someone else’s. However, there are some general questions that we can answer for you now, to give you the basics.

What is a novated lease?

Novated lease, salary package, salary sacrifice… it’s all the same!

A novated lease is the smart option to consider when purchasing your next car. It is an agreement between you, your employer and a financial provider where you ‘lease’ your vehicle and your employer is responsible for making your repayments out of your pre-tax salary. It allows you to have the running costs (like fuel and services) deducted in the same repayment and some employers will even allow you to claim back the GST on those same costs. This means you receive more take-home salary compared to those who take our traditional finance options (like a bank or credit union). There is flexibility with a novated lease – you can upgrade your vehicle at any time during the contracted period or at the end you can ‘pay out’ the contract and own your vehicle.

Where do I start?

If you choose to enter a novated lease, there are a few simple steps you need to take before getting your new car.

First you need to check if you are eligible (see the next question for more information). After this, give our novated lease experts a call on 1300 738 601 and follow the prompts to have a chat about your needs. They’ll then guide you through the process until you have the keys to your new car.

What are the advantages of a Fleet Network novated lease?

There are many ways to purchase a car: dealer finance, personal loan, home loan offset or cash payment. No matter how good the deal may seem, none of these can offer the additional tax and GST savings of a novated lease.

A Fleet Network novated lease offers advantages to both the employee (the person who will be owning the car) and the employer (who will arrange the salary package).

Employee advantages:

>     Repayments taken from your pre-tax income mean you save on tax and receive a greater take-home salary.

>     Significant savings on the new car purchase price through national fleet pricing discounts.

>     Save GST on the purchase price of the vehicle and its running costs*. (*Subject to Employer policy).

>     Ultimate private use; you choose the car you want and how it’s used but get the benefits associated with a company car.

>     Save time and stress when sourcing and procuring a new car.

>     Gain access to dealerships Australia-wide, ensuring you get the vehicle of your choice.

>     At Fleet Network, you aren’t just another number. Our representatives will work with you from beginning to end, and remain available to you after you’ve received your car.

>     Work directly with professionals passionate about cars – we don’t deal in anything else.

>     Access to a range of exclusive Fleet Network benefits.

Employer advantages:

>     It costs nothing to you the employer, but provides thousands of dollars of benefits to your employees.

>     Effectively increase employee salaries with no additional salary costs to the company.

>     Raise the value of your company in the eyes of your employees.

>     Reward employees’ hard work with minimal effort on the part of the company.

>     Retain, Reward, Remunerate – a very effective way to attract quality new employees at no additional cost.

>     No financial risk or liability to employers; if an employee leaves, then the deed of novation ceases and responsibility for the lease payments reverts to the employee.

Is it too good to be true?

Hundreds of thousands of Australians benefit from salary packaging and novated leases every year. Salary packaging is an extremely popular way to get more out of your pay.

Many employers within the private and public sector offer salary packaging as an incentive to retain and reward their staff. The types of things you can salary package, and how much, depends on what your employer offers, as well as what the Australian Taxation Office (ATO) allows for your particular industry.

Fleet Network have been offering novated leases on vehicle purchases for more than 20 years. It’s worth asking one of our experienced representatives to give you some options.

Do I drive enough kilometres to have a novated lease?

You don’t have to drive a lot to benefit from a novated lease. Whether you drive fewer than 10,000 or more than 50,000 kilometres a year, a novated lease is a great way to finance a car.

Changes to legislation mean that the amount of kilometres travelled is now less important for novated lease drivers. For example: with a novated lease on low kilometres, Kim earns $60,000 a year (excluding the employer’s super contributions) and is considering leasing a new car valued at $34,000 over four years. Kim estimates the car will travel 15,000 kilometres a year and intends on paying for the lease and running costs with a combination of pre-tax and post-tax dollars. By choosing to salary package the car, Kim’s disposable income could increase by $231 a month – or $2,772 a year.

How do I know if I’m eligible?

To be eligible for a novated lease you must:

>     Be a permanent employee – you cannot be in a probationary employment period.

>     Your employer must be willing to enter into the agreement via a deed of novation.

If your employer would like more information, please follow this link.

Do I have to involve my employer?

Yes you do. Your employer is responsible for deducting your repayments from your pre and post-tax salary. This is why it is generally called a ‘salary sacrifice’.

To save tax, do I need to use my car for business?

No, not at all. Even though your employer is helping you to buy the car, it belongs to you as a private purchase.

What documents will I need?

To enter into a Fleet Network novated lease, you will need to supply the following:

>     A valid Australian driver’s license

>     Current pay slips.

>     Completed settlement documents, which Fleet Network will supply you with.

Can I buy a used car?

Yes. You do not have to purchase a brand new car in order to enjoy the advantages offered by a novated lease agreement.

However, because a car is a depreciating asset we can only offer a novated lease agreement for used vehicles no more than five years old. This is to protect you and ensure that your car still holds value when it reaches the end of the lease agreement period.

How can I work out what my savings will be?

The best way to get an accurate savings calculation is to call one of our experienced representatives on 1300 738 601.

What can I do if the quote is higher than I expected?

If you receive a quote which is more than you initially thought, we encourage you to contact our team. We will work with you to prepare further quotes.

Can I choose the insurance company? I might be able to get a better deal elsewhere.

Yes you can choose the insurance company and Fleet Network actually recommends this. If you decide to source your insurance from your own provider we will allow for this in your quote so that you can pay for the insurance yourself and then submit a reimbursement through your online account.

Can I set my residual lower than recommended?

This may be possible; however the Australia Taxation Office prescribes minimum and maximum amounts that the residual can be set at. These minimum and maximum amounts depend on the original purchase price of the vehicle so please see the table below on residual percentages.

Depending on the kilometres you travel per annum, in some cases travelling more than 30,000 kms per annum the residual can be set lower as agreed by the financier.

In order to minimise the chances of having to make up a shortfall, it may be beneficial to set the vehicle residual lower than the expected value at the end of the lease, rather than higher.

Residual amounts table:

Lease term
(in years)
Minimum residual

(% of vehicle value)

Maximum residual

(% of vehicle value)

1 65.63 75.00
2 56.25 65.00
3 46.88 55.00
4 37.50 50.00
5 28.13 40.00

What happens if I lose my job?

We can transfer your novated lease to a finance loan with the financier. Your novated lease is fully portable; if you are moving to another organisation/department which allows salary sacrifice, the lease can be fully transferred via a ‘renovation’.

What happens at the end of the lease?

Fleet Network will contact you to discuss the upcoming conclusion of your lease. You have several options when it comes to your vehicle:

>     Get Fleet Network to arrange an immediate changeover to a new car.

>     Refinance the residual with Fleet Network and continue leasing provided the car is no more than eight years old.

>     Pay out the residual, keep the car and cease leasing.

>     Pay out the residual, sell the car yourself and cease leasing.

What is FBT?

Fringe Benefit Tax (FBT) is a tax that is paid on certain benefits that employers can provide their employees. A novated lease is a type of FBT. FBT is separate to income tax and is based on the taxable value of the benefit you have been provided with.

How does FBT work?

Fringe Benefit Tax is a tax which is based upon the value of the benefit you receive for your private use, in this case, a novated lease vehicle. The calculation of liability is made from the cost of the vehicle and the annual kilometres.

Once I’ve entered a novated lease, can I choose where the car is serviced?

Yes, as long as the service agent is a certified mechanic.

Can my family drive the car?

Yes they may, however you will remain responsible for how the vehicle is driven and cared for. Fleet Network recommend you include additional drivers on the comprehensive insurance policy included in the lease.

I have some expenses that I paid for. Can these be paid back to me?

Yes, provided they are legitimate vehicle operating expenses and you have a valid tax invoice. Provide these and the bureau that manages your package will reimburse you the expenses paid.

What happens if I don’t spend my entire budget?

If your account is in credit, Fleet Network will reimburse the full amount of the credit to your employer who will then pass this on to you through the normal payroll system.  If you decide to enter into a new novated lease, it is possible for this credit to be rolled over to your replacement vehicle costs.

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“We have a big family and when we first started dealing with Greg from Fleet Network earlier this year he pushed and pushed to get us into a car big enough for us all and one that would work within our budget. He just wouldn’t give up! We now drive a Hyundai iMax, which is perfect for us. We rang him up so many times with questions but nothing was ever a hassle for him. When Greg went on holiday and Jodie took over it was exactly the same – they were phenomenal. They really did go above and beyond what they had to do in order to help us. Would we recommend Fleet Network? We already do recommend them, to everyone. They have been just so friendly and helpful and worked so hard for us. We can’t thank them enough.”

Troy and Karen , State Government Employee, New South Wales

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“The vehicle is everything we thought it would be as it’s our third Santa Fe, second diesel. A lot more refined than the earlier model, none the less both Joanna and myself are very happy with it. Right from the start when we spoke with Tim nothing was too much trouble and if there was a query then our contact persons were only too happy to attend to our questions with the utmost professionalism and courtesy. I have passed on to other staff members your company name and hopefully they will be in touch with yourselves in the future.”

Phil , Corrective Services

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“Yes, everything is going great for this vehicle so please thank Frank Agostino, Vicki Scott, Sasha Carruthers and Tammie Maciejak for all their help.”

Craig , WA Health

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“This is the third car that I have bought through Fleet Network. I change my car every three years and this time I wanted a VW Beetle convertible, my dream car, and there was only one left in Australia. Fleet Network managed to find the car for me and get it sent over from the dealer over east. They were fantastic. They then held onto it for me while I got my other car ready for exchange, a process that was delayed due to hail damage from the storms. There were further delays as things got held up with the insurance company but Fleet Network was brilliant. They kept me up-to-date with everything and waited while I got it all sorted out. I would definitely recommend them. They are really friendly and helpful and everyone I have spoken to has been brilliant.”

Colleen , WA Health, Western Australia

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“Everything is fantastic with my car and the service I have received was great, can’t thank you enough. Thanks Carole, I do appreciate your follow up. Well, so far everything is ok, if I have any queries I will definitely contact you. The customer service was quite good, I was impressed by consistent and up to date communication throughout the process.”

Memory , NT Dept Children and Families

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“Everything is going well with my vehicle, I love it. I am more than happy with the assistance that I received during the process and would happily recommend Fleet Network to others.”

Jo-Anne , QLD Dept of Communities

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“I first started dealing with Fleet Network in 2002 when I got in touch and spoke to Matt. I was a bit wary as I had never financed a car this way before but Matt talked me through everything and put me at ease. I told him the things I was looking for in a car and before I knew it he had arrived with a Toyota Corolla for me to test drive. I tested it, he went through the costs, which were almost negligible, and the car has been going beautifully ever since. It’s been passed through the family but Matt was right, it was exactly what I was looking for and has been a great car. Since then I have bought 3 more cars through Fleet Network. I can’t recommend them highly enough – they are really good people, so friendly and they always follow through on their promises. Everyone I know who has dealt with them has commented that Fleet Network really do care.”

Antonio , Department of Education, Western Australia

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“I’d like to thank you and the Fleet Network team for the professional and friendly assistance I received throughout the process and renewing my car. The whole team ensured I knew everything that was happening and a special thanks to the lady who I signed the final paper work with on the hand over day, she was so nice. I have since mentioned you guys and the service you provide to a few of my friends and hope that if they choose to go down this path then they will certainly be looked after. Once again thank you all so much, I will see you all again at the end of my lease for a new one, apparently my son will have his licence by then and has already claimed my car.”

Shirley , WA Education

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“Everything great with my new car. Customer service was excellent was a pleasure doing business with your company.”  

Theresa , NT Dept of Health

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“This is the third vehicle we have bought from Fleet Network. We keep going back because we get such great service and good value for money from the vehicles we buy. We’ve currently got a Honda Odyssey Luxury, which is a great family car. We always do our own research first and then just call them up and tell them what we want. They source it, give us the price, do all the paperwork and then we just go and pick it up. It’s so simple. The hardest part is choosing the car we want! As to recommending them, anytime we have friends looking for a car we recommend Fleet Network. They’re a good company and everyone we recommend has had a good experience.”

Garry , Department of Indigenous Affairs, Western Australia

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“Everything is going very well. The whole process was excellent and I am very happy. Thank you.”

Mark , Army

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“I would like to say a big thank you to Sasha who provided me a very valuable service, she has been very patient, friendly and always providing me up dates on my current vehicle on order. I currently work for defence and as you probably do not know our movements can be stressful at times and have requested to have my vehicle delivered to me before the delivery date of December 12. Even though Sasha has been informed by Holden that the said due date will still occur on December 12, she is trying really hard to have this vehicle delivered to me at the earliest opportunity due to my transfer taking place on December 16. Once again thank you and I am looking forward to doing business with you during the course of my lease through Fleet Network and I will highly recommend your company to Defence and to family members.”

Rudsyn , Defence

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“Can I just say that I love driving my new car. Thank you and your staff very much for your assistance. Ann is so looking forward to meeting with you. We are all going to be driving new cars in this office at this rate. Thanks again.”

De , WA Dept of Human Services

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“Jodie and Tim were excellent to work with, they helped me understand exactly what I needed to do and Jodie guided me through the whole experience expertly and patiently.”

Sarah , Dept of Education

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“I would like to say a very big thank you to Sean and Sherren for providing me with really outstanding customer service.”

Karen , WA Transport

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“Sasha at Fleet Network was exceeding professional and is really looked after me extremely well!!! My first contact was with Steve Asher and then Frank rang me and worked towards satisfying all my requirements! Would highly recommend them to anyone, which I have already done on three occasions already!”

Kevan , Qld Education

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“Your customer service during the leasing process was outstanding, as it was last time. We would not hesitate to lease through Fleet Network again when our lease is up.”

Jason , WA Education

SPEAK TO OUR NOVATED LEASE EXPERTS TODAY.

WE ARE DEDICATED TO GETTING YOU THE BEST RESULT.

“Thanks Jodie, I would just like to say that you have been fantastic with your help through this whole car process and I really appreciate everything that you have done.”

Donna , WA DOCS