Novated Lease
A Tax-Effective Vehicle Financing Solution for Australian Employees
A Novated Lease is a smart and tax-effective way for Australian employees to finance a vehicle as part of their salary package. This arrangement allows employees to lease a car through their employer, using pre-tax salary (salary sacrifice) to cover repayments, potentially reducing taxable income and increasing take-home pay.
How a Novated Lease Works
1
Employee Chooses a Vehicle
Select a car that suits your needs, whether new or used
2
IFG Arranges the Lease
We finance the vehicle and structure a lease agreement.
3
Employer Makes Lease Payments
The employer deducts lease payments from the employee’s pre-tax salary.
4
Running Costs Included
The lease can cover fuel, maintenance, insurance, and registration, streamlining vehicle expenses.
5
Flexible Transfer Options
If the employee changes jobs, the lease can be transferred to a new employer or continued independently.
Benefits of a Operating Lease
- Tax Savings – Reduce taxable income by using pre-tax salary to cover vehicle expenses.
- Bundled Running Costs – Finance fuel, maintenance, registration, and insurance in a single payment.
- Private & Business Use – Employees can use the vehicle for personal and work-related travel.
- No GST on the Purchase Price – Save on upfront costs, as GST is typically claimed by the leasing company.
- Flexible End-of-Lease Options – Upgrade, extend, or buy the car outright when the lease term ends.
At IFG, we specialise in Novated Lease solutions in Australia, offering competitive rates, tailored lease agreements, and expert salary packaging advice. Whether you’re an employee looking for a cost-effective car finance solution or an employer seeking to enhance staff benefits, our team can guide you through the process seamlessly.
Get Started
Looking for the best Novated Lease in Australia? Contact IFG for a free consultation and explore how salary packaging a vehicle can benefit you.