Novated leasing: your route to savings
Novated leasing
A novated lease is an easy and cost-effective way to acquire and run the car of your choice. In addition to the thousands you could save on a new car,
you could potentially enjoy significant tax savings with an SG Fleet Novated Lease.
What is a novated lease?
A novated lease is an arrangement between you, your employer, and
SG Fleet. This setup allows you to pay less income tax and save the GST on running costs.
You have the flexibility to choose the car you want—whether it’s new, used/demo, or even your own vehicle—and we’ll package it into a novated lease for you.
All your car-related expenses including finance repayments, registration, insurance, fuel, maintenance, and servicing are bundled into one regular payment deducted from your salary. This streamlined approach not only simplifies car ownership but also unlocks significant savings. Check out our in-depth guide to novated leasing here for more information.
For petrol/diesel vehicles, Hybrid Electric and luxury Electric Vehicles, a portion of your regular payment is made using pre-tax dollars. For Battery Electric Vehicles (BEVs) under the luxury car tax threshold, payments are drawn entirely from your pre-tax salary, supercharging your savings (learn more).
Benefits and features of a novated lease
Income tax savings
You’ll enjoy more money in your pocket.
GST savings
Save on your new car
You let us know what vehicle you're after and we source it for you.
Novate any car
Servicing and repairs
In addition to GST savings, our team acts on your behalf to avoid over-servicing and over-charging, plus gaining you access to further fleet discounts on parts and labour when you utilise our network.
Fuel / charging card
Additionally, you can earn points with our fuel partners’ programs.
Budgeting
No need to juggle multiple bills and expenses—it's a hassle-free experience.
Online account
Additional products and services
Frequently asked questions about novated leasing and tax
Novated leasing is a salary packaging arrangement between you, your employer and a leasing provider. You choose an eligible vehicle, and your employer makes the lease payments on your behalf using deductions from your salary.
A typical novated lease will also include a budget for eligible running costs, such as:
Registration and compulsory third-party insurance
Comprehensive insurance
Fuel or electric vehicle charging
Servicing and maintenance
Tyres
Roadside assistance
Depending on the vehicle and how the arrangement is structured, payments may be deducted from a combination of your pre-tax and post-tax salary. Using pre-tax income can reduce your taxable salary, while the post-tax component is commonly used to manage the fringe benefits tax implications of providing a vehicle for private use.
Salary sacrificing allows you to use part of your pre-tax salary to pay for an eligible benefit provided through your employer.
A novated lease is one way this type of arrangement can be used for a car. You can generally use the vehicle for both personal and work-related driving. At the end of the lease, a residual amount will remain. Depending on your arrangement, you may be able to pay the residual and keep the car, refinance it (subject to finance approval), or replace the vehicle with another one.
If you leave your employer during the lease term, the novation arrangement usually ends. Responsibility for the lease returns to you unless the lease can be transferred to a new participating employer.
Leasing a car through a novated lease can be worthwhile for tax purposes, but it may not be the best option for everyone. The potential benefit comes from paying some vehicle expenses from your pre-tax salary, which may reduce your taxable income. GST savings may also apply to the vehicle purchase price and eligible running costs.
However, tax savings should not be considered in isolation. The overall value of a novated lease depends on factors including:
Your salary and marginal tax rate
The price and type of vehicle
The lease term
Your estimated annual kilometres
Running-cost budgets
Administration fees
The vehicle’s residual value
What happens if you change employers or end the lease early
Private use of a vehicle provided through a novated lease will generally create a car fringe benefit. Although the employer is responsible for the FBT liability, the cost is commonly accounted for within the employee’s salary package, often through post-tax employee contributions.
Eligible electric vehicles can receive different tax treatment. Under the current electric car discount, eligible battery-electric and hydrogen fuel-cell vehicles and associated car expenses may be exempt from FBT. Plug-in hybrid electric vehicles generally stopped qualifying for new arrangements from 1 April 2025, although transitional rules may apply to some existing commitments.
Before proceeding, review a personalised estimate that clearly shows the pre-tax and post-tax deductions, fees, running-cost assumptions and residual value. You may also wish to seek independent financial or tax advice based on your circumstances.