Novated Leasing

Flashcards about Novated Leasing

Novated Lease

A way to bundle your car costs into one simple payment that comes out of your salary before tax. It includes registration, servicing, fuel, tyres, insurance—even car washes and roadside! GST savings and possible tax benefits, depending on your income and vehicle.

Maxxia-sourced vehicles

Fleet discounts, GST savings, and full support

How to save money with a novated lease?

Reduce taxable income, covers running costs, means you don’t pay GST on the car or its running costs.

Residual Value Options

Trade in, refinance, pay it out and own the car

What's Included in a Lease?

Finance, servicing, rego, fuel or EV charging, tyres, comprehensive insurance, roadside assist

Lease Terms

Typically 1 to 5 years — longer = cheaper fortnightly deductions

What if I leave my employer?

Pay the lease directly to the financier, payout or refinance the car. If you move to another Maxxia-supported employer, the lease can transfer

How do I save money?

Reduces your taxable income, Covers running costs (fuel, rego, servicing, tyres, insurance), Means you don’t pay GST on the car or its running costs

Second Hand Vehicle Rules

Vehicle must be under 8 years old at lease start and must be under 12 years old at lease end.

Prepaid via Lease Budget

Registration, Scheduled servicing & maintenance, Insurance (if bundled), Roadside assistance, Tyres (if selected), Electricity (EV) or fuel (petrol/diesel)

How Running Costs Work

Customer contributes a fixed monthly amount. Fuel/EV card is issued for direct use. Reimbursements are submitted via Maxxia app for out-of-pocket items.

Luxury Car Tax (LCT)

Luxury Car Tax (LCT) is a tax on cars with a GST-inclusive value above the LCT threshold. It applies to vehicles sold or imported into Australia, including those acquired via novated lease.

Residual Value

The estimated value of the vehicle at the end of the lease term. Set as a percentage of the vehicle’s initial cost and must meet ATO minimums to be compliant.

FBT Rules

EVs < $89,332 exempt from FBT if first used after 1 July 2022

Soft Check

Occurs during quoting, portal access, or pre-approval enquiry - Does not affect credit score.

Hard Check

Happens once a finance application is formally submitted - Will appear on the customer’s credit report.

State EV Subsidy

State rebates aren’t available on novated leases in most states

Charger & Installation Packaging Exclusion

Charger hardware and install can’t be packaged; claiming electricity requires separate meter