A novated lease program is an effective way to save tax and beneficial for both employers and employees. By taking out a novated lease you are able to make your finance repayments from your pre-tax income. As your tax is reduced it effectively increases the income you take home. By taking out a fully maintained novated lease you can also pay for the running costs of your vehicle, such as fuel, servicing, registration and insurance from your pre-tax income. This realistically can save you thousands of dollars each year in tax. Novated leases aren’t just limited to the employee but also their spouse which can further increase the tax savings for the household.

Employees are attracted to novated leases as they can finance the car of their choice rather than adhering to strict company policies or sharing a company car. Employers are attracted to novated lease programs as it eliminates the need to keep company cars in stock which affects the company books as they are holding depreciating assets. Employers that offer novated lease programs can help retain staff and attract future staff members.