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.