What Restrictions Are There on Novated Lease Vehicles?

When you sacrifice part of your salary to finance novated lease vehicles from a reputable provider, you will have the freedom to choose the make and model of car you desire, subject to some restrictions.

Which cars can I lease?

Anyone can buy a car through a novated lease, whether this is offered by their employer or arranged independently with a leasing provider. You can usually finance any type of new car or passenger vehicle through a novated lease, and depending on your lease agreement you may also be able to package a light commercial vehicle or used car, as long as these are less than eight years old or have travelled less than 200,000 kilometres by the close of the lease term. The maximum term for a novated lease is 60 months, but the length of your agreement will be determined by the value of the car you buy.


Luxury Car Tax restrictions

If you’re interested in leasing or buying a luxury car, you will need to understand the implications that the Luxury Car Tax Limit has on novated leases. Many novated lease providers will not offer vehicles above the current LCT threshold, while leases arranged through other providers will include the LCT cost in addition to GST, which will have an impact on your monthly payments through salary sacrifice.

Novated lease vehicles in Broome

Fleet Network offers novated leasing in Geraldton, Broome, Albany and Perth, allowing people to purchase vehicles at a flat 20 per cent of taxable deductions. Find out more about how to salary sacrifice by calling 08 6555 3854.