Benefits of a Novated Lease

Novated Lease is a “type of motor vehicle lease common in Australia that allows a business to lease a motor vehicle on behalf of an employee, with the responsibility of the lease lying with the employee and the lease payments being made from the employee’s pre-tax income”  (

It is a three-way agreement between the employer, employee and lease company. The employee leases the vehicle from the lease company, in return the employer takes the obligation of the lease for the employee. Usually, employers deduct the payments from the employee’s pre-tax income. This is also more commonly known as salary package.

Benefits to the employee

  1. Income Tax Savings
  2. GST savings on the car’s purchase price
  3. If the employer has many vehicles under this scheme, the employee has access to volume discounts
  4. More car range of  your choice (as compared to a company car arrangement)
  5. Employee retains the vehicle and can be transferred to another employer
  6. The lease provider will assist in car maintenance (usually included in the welcome pack. There is also an option of having your preferred supplier deal directly with the service provider for payment on your behalf)

Benefits to the employer 

  1. An effective option to provide salary increase to the employee with minimal cost implication to the business.
  2. More cost-efficient than operating a whole fleet of company vehicles.
  3. The employer does not assume any risk of the vehicle (as compared to a company car arrangement)

Benefit to the lease provider

  1. Provide services for a fee or commission.

Do you know that Roverworks is an accredited supplier for maintenance, parts and repair for Novated Lease Vehicles. Just bring them over to the shop and we can sort it out for you! No need to queue up to two weeks with the service provider. We can repair your vehicle, right here, right now without voiding your warranty. Call our shop now at (02) 6241 8777.

Roverworks is Canberra’s top choice for automotive repairs, parts and maintenance. Our mechanic team specialises in Land Rover and Range Rover models, in addition to servicing of 4x4s, off-road and other car models. Visit our shop for a quick check-up or consultation, repairs, maintenance and parts.