From checking your employer's policy to signing the novation deed and planning for lease end — a complete walkthrough for Australian employees.
Confirm your employer offers salary packaging and novated leasing. Most employers with 20+ staff do, but policies vary. Ask HR or payroll for their novated lease policy, any vehicle restrictions, and whether they use a preferred provider.
Select the car you want — new or used — and obtain novated lease quotes from at least two providers. Compare interest rates, monthly deductions, residual values, admin fees, and what's included in a fully maintained package.
Submit a finance application through your chosen provider. You'll need proof of income, employment details, identification, and consent for a credit check. Most providers offer digital applications with approval within hours.
Once approved, you sign the lease agreement with the financier and a deed of novation with your employer. This legally transfers your payment obligations to your employer for the duration of your employment.
The finance company purchases the vehicle and arranges delivery. Your employer begins deducting lease payments from your salary each pay cycle — a mix of pre-tax and post-tax (ECM) amounts depending on vehicle type.
From day one, understand your residual value and end-of-lease options. Start planning 6–12 months before lease end whether you'll buy, refinance, trade in, or upgrade to a new vehicle.
Four paths when your novated lease term finishes — buy, refinance, trade-in, or sell.
What to compare when evaluating Maxxia, SG Fleet, Smartleasing, and other providers.
Both can be novated — but terms, rates, and FBT treatment differ.
Tick these off before you sign a novated lease agreement.
| Item | What to confirm |
|---|---|
| Employer salary packaging policy | Written confirmation that novated leasing is available and any restrictions |
| Two or more lease quotes | Compare rates, residuals, admin fees, and included running costs |
| Drive-away price breakdown | Base price, options, GST, dealer delivery, stamp duty, on-road costs |
| FBT / EV eligibility confirmation | Especially for EVs near the $75k or $91,387 thresholds |
| Finance pre-approval letter | Valid approval with stated interest rate, term, and conditions |
| Novation deed (signed) | Signed by you, employer, and finance company |
| Comprehensive insurance | Active before delivery — often packaged in the lease |
| Residual value on quote | Must meet or exceed ATO minimums for your chosen lease term |
| Pre-tax vs post-tax split | Understand your ECM component for non-EV vehicles |
| End-of-lease options documented | Refinance, buyout, and trade-in terms explained in writing |
Use our ATO-compliant calculator, upload a fleet provider quote, or ask NOVA — all free.