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.

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