Discover the running costs you could bundle into a novated lease
Car costs can have a way of surprising even the most organised driver. One month it’s a routine service, the next its new tyres, a registration renewal or a fuel price spike you didn’t see coming. The costs of keeping a car on the road can feel unpredictable and overwhelming.
This is where novated leasing could change the game.
Unlike a standard car loan where you pay the finance and then fend for yourself with the running costs, a novated lease can bundle all usual running costs together into one regular payment. It takes the guesswork out of car expenses and replaces it with a set budget that is managed for you, often using pre-tax income - which could mean real savings over time.
But what exactly can you include in that budget? And how does paying for running costs with pre-tax salary actually save you money? In this guide we will break down the expenses you can package, how the budgeting process works and why this method of car ownership could leave you with more money in your pocket.
Most novated leases include a comprehensive package of vehicle expenses bundled into your regular lease payment. Here’s a breakdown of the specific car running costs you can typically include:
Traditional petrol costs or EV charging fees are often bundled into a novated lease.
Fuel cards can be included in your novated lease and allow for charges to be made directly to your Smart account. This means you can enjoy the tax savings, without the need to make a manual claim for reimbursement. Smart offers a variety of fuel cards for major retails. Discover more about fuel cards here.
If you have an electric vehicle (EV) you could grab a Chargefox RFID card^ and use your Smart account to access and pay for EV charging. Chargefox is Australia’s largest EV charging platform*. Chargefox brings together thousands of chargers owned by hundreds of organisations into one easy to use app so you’ll always have a place to recharge.
Routine scheduled servicing is budgeted for and can be included in your lease. This could help eliminate surprise bills and helps keep budget planning predictable.
Tyres are a safety cost that some drivers put off due to the price. A novated lease allows you to budget for tyre replacement. This could ensure that when your tread wears down, you could replace them without worrying about finding hundreds of dollars in your household budget.
Your annual rego and compulsory insurance are budgeted for in your regular payments. When the renewal notice arrives, the funds could be sitting in your account, ready to pay the bill. Smarts also offers the Rego Renewal Program, that makes registration claiming easier than ever.
Novated leases typically include comprehensive insurance – a requirement of your car finance. This can help ensure your vehicle is covered without separate monthly premiums. You also have the flexibility to choose your provider.
Emergency roadside services are often bundled, offering peace of mind and minimising out-of-pocket surprises.
Believe it or not, keeping your car clean can be part of the deal. Your budget can include professional car washing and detailing, helping you maintain the vehicle’s condition and resale value.
If you are conscious of your environmental footprint, you can choose to include carbon offsetting in your lease.
You might be wondering, how does Smart know how much fuel I will use or when I will need new tyres?
The answer lies in smart estimation. When you set up your quote, Smart will calculate a budget based on a number of things, including:
The estimates are combined into an annual running cost budget. The total is divided by the number of pay cycles in a year to create your regular deduction.
Your novated lease account functions like a bank account for your car.
You are also able to adjust it yourself in your online account. You are never penalised for driving more – you simply pay the costs you incur.
One of the biggest reasons to package your running costs is the tax savings.
When you pay for fuel, insurance, or servicing from your own pocket, you are using post-tax dollars. This means you have earned the money, paid income tax on it, and then used what is left to pay the bill. You also pay GST on top of that service.
With a novated lease, these costs are paid (at least partially) with pre-tax dollars.
Beyond the maths, there can be significant benefits of a novated lease:
A novated lease can offer a smarter way to manage the ongoing running costs of a car. By bundling your finance, fuel, insurance, registration and maintenance into one regular payment, you could gain control over your budget and help reduce the stress of unexpected bills.
To discover more reasons why a novated lease could be worth it, read this article here. If you’re ready to discover the tax savings you could get on your dream car, use the novated leasing calculator here.
This is general information only. Before entering into any salary packaging or novated leasing arrangement, you should consider your objectives, financial situation and needs, and obtain appropriate legal, tax, financial, or other professional advice based upon your own particular circumstances. This information is current as at February 2026.
^A monthly fee of $5 applies
*Source: Chargefox website: https://www.chargefox.com/
