How novated leasing works
Learn how you could save on tax by salary packaging a car.
About novated leasing
Novated leasing is ATO-approved and may help reduce the income tax you pay. It’s a three-way agreement between you, your employer and a finance company – with Smart™ doing the legwork to make things simple.
Use our calculator to see if your employer offers novated leasing.
Simple steps to lease a car you love
1. Compare cars and calculate savings
- Get quotes for your preferred car and accessories, and different lease terms.
- Compare savings against other options like a car loan or buying outright.
2. Lock in a great deal
- Apply online for finance, with a usual 24-hour turnaround time, subject to credit check.
- Sign your contract, and we’ll source your car at a great price through our 740-strong dealer network.
3. Take delivery and hit the road
- Enjoy the freedom and pleasure of having a new car, while we take care of salary deductions and payments.
- Start getting the big income tax savings possible with a novated lease.
Ways you could save
A novated lease with Smart helps you drive your salary further in many ways.
Save tax when you buy
Check out our calculator for latest deals, and take advantage of our dealer network for competitive prices. For a new car, you instantly save an extra 10% as there’s no GST on the purchase price with a novated lease.^
Save tax as you drive
Use your pre-tax dollars to pay for things like insurance, registration, fuel, maintenance and other running costs, such as car wash expenses. On top of this, you can get fleet pricing on your car’s servicing (including parts and labour) through our Vehicle Maintenance Program (VMP).
Save time and hassle
To help you get behind the wheel sooner, our complimentary car buying service can source and purchase a new car on your behalf. We can also arrange zero-pressure test drives, and even offer Smart SellTM when it’s time to sell your car.
What happens when your circumstances change?
If your circumstances change, we're here to help. Let us know and we'll talk you through your options. For example, if you change employers, you may be able to transfer your lease if your new employer offers novated leasing. You may also be able to take over the lease payments yourself, similar to a regular car loan. If you'd prefer to end your lease early, you can pay out the remaining balance (early exit fees may apply).
Changing employers
Losing your job
Taking unpaid leave
Facing financial hardship
Save even more tax with an electric vehicle
If you lease an eligible, fully-electric vehicle (EV), 100% of the lease and car costs come from your before tax income and are exempt from fringe benefits tax, thanks for the federal government’s Electric Car Discount.^^
So not only could you get the carbon efficiencies and amazing technology of an EV low-emissions vehicle, you could save thousands of dollars each year.
Learn more at a webinar
Find out more about how novated leasing works and how it could help you save.
We’re here to help
FAQs
Important information
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 seek appropriate legal, financial or other professional advice based upon your own particular circumstances. The availability of benefits is determined by your employer. Conditions and fees apply. Smartsalary Pty Ltd, ABN 24 096 796 100, a SmartTM company.
^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 [$6,353 in FY 2026-27] unless exempt).
^^ 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 ($91,661 in FY 2026-27). See the Australian Taxation Office website for full eligibility criteria.