Home/
Novated leasing with Smart

Novated lease for employers

Novated leasing is one of the most convenient ways to buy and run a car and can benefit both your organisation and your employees.

Enquire now
hero_header.png

What is novated leasing for employers?

A novated lease for employers is a way for your organisation to offer novated leasing as a salary packaged car benefit – whether the car is new, used or already owned.¹ An employee’s pre-tax income can be used for car finance and bundled running costs, which can help reduce income tax and GST. SmartTM can help manage it all for you, including transitioning a lease to or from another employer. In addition, novated leasing may be:

Offered by any employer
Convenient and offer potential tax savings for employees
ATO-approved and minimal cost to you , as the employer

FAQs

An employee has terminated their employment. How is their leasing arrangement managed going forward?
Does Smart provide Fringe Benefits Tax (FBT) management to ensure employees do not incur FBT liabilities?
An employee is taking extended unpaid personal leave, how do they manage their lease payments during this period?
What will a novated lease for employers cost our business to provide?
What is the procedure for claiming GST?
What are the benefits of a novated lease for the employer?
Can you get a novated lease without employer involvement?
What is a novated lease without employer involvement?
What are typical novated lease employer obligations?
Do all employers offer novated lease options?
How does a novated lease for employers work?
What are the novated lease benefits for employer decision-makers?

Visit Smart FAQs for more answers

We’re here to help

Helpful links

Important information

This is general information only. Before entering into any salary packaging or novated leasing arrangement, employees should consider their own objectives, financial situation and needs, and seek appropriate legal, financial or other professional advice based upon their own particular circumstances. The availability of benefits is determined by the employer. Conditions and fees apply. Smartsalary Pty Ltd, ABN 24 096 796 100, a SmartTM company.

 

^ Fringe Benefits Tax (FBT) exemption available for eligible electric or hydrogen cell vehicles purchased through a novated lease up to the Luxury Car Tax limit ($91,387 in FY 2025‑26). See the Australian Taxation Office website for full eligibility criteria.

 

* GST is not payable on the purchase price of a vehicle financed through a novated lease (GST savings are calculated on the FBT base value of the vehicle, up to the claimable limit [$6,334 in FY2025‑26] unless exempt).

 

1. To package a used or current car, certain financier requirements must be met. Exact age requirements and minimum value depend on which financier you choose.

 

2. PWC. The Future of Work: What Workers Want Report. 2021. Click to view.