What is a novated lease?
A novated lease is an Australian Taxation Office approved way of paying for a car using some of your
pre and post-tax income. This means you could pay less tax and have more money to spend on the
things that matter.
A novated lease with Smart, is one of the most cost effective and easiest ways to buy and run a car.
Our buying power can help you save on the purchase price of a new car, plus you pay no GST 2 on the
purchase price.
Ongoing running costs like your finance payments, fuel, registration and insurance are bundled and
mostly deducted from pre-tax. We then pay most bills on your behalf.
You could save thousands with a novated lease.
Save when you buy
Skip the GST on the cars purchase price to save an instant 10% 2
Our network of over 700+ dealers means we can negotiate the best possible price
for your new car.
Save when you drive
Use your pre-tax and post-tax salary to pay for fuel, registration, insurance and
servicing, saving you hundreds or thousands every year.
Save on time
The convenience of all your finance and expenses bundled into one simple
payment on payday.
Access to our Vehicle Disposal Program where we take care of selling your current
car. 3
- Teams and individuals employed by Smartgroup Benefits Pty Ltd received recognition and awards at the 2023 CSIA Australian Service.
Excellence Awards. Smartgroup Benefits Pty Ltd provides staff and services to companies within the Smartgroup Group of companies, including Smartsalary Pty Ltd.
2. GST is not payable on the purchase price of a vehicle financed through a novated lease (GST savings are calculated on the FBT base value of the vehicle, up to the claimable limit [$6,334 in the 2024-25 financial year] unless exempt).- Vehicle Disposal Program membership fee applies. See https://www.smart.com.au/novated-leasing/services/vehicle-disposal-program/ for more details.
Never a better time to lease an EV
Significant Savings – 100% Fringe Benefit Tax Free
The Electric Car Discount introduced by the Government in 2022 provides an FBT exemption for
Electric Vehicles (EVs) financed under a novated lease that cost below the luxury car tax threshold:
$91,387 in the 2024-25 financial year.
This EV discount means you can salary package the finance plus running costs out of your pre-tax
salary.
Applies to all new EVs purchased after 1 July 2022, or for second hand EVs first registered after 1
July 2022 which are either:
- Battery electric vehicles and,
- Plug in hybrid vehicles (PHEV) - only available up until 1 April 2025, with exemptions being
applied for existing leases until they expire.
Benefits of an EV
EVs are powered by electricity from batteries rather than petrol. They have several advantages over
traditional petrol-powered cars.
| Reduced fuel costs |
| A battery Electric Vehicle runs solely on battery power. Even with a hybrid vehicle, your fuel costs could be substantially reduced. |
| Lower maintenance costs |
| EVs require less maintenance than traditional petrol-powered cars. They have fewer moving parts, so there are fewer things that can go wrong. Some EVs have as few as 20 moving parts. Additionally, EV owners do not need to worry about oil changes, spark plugs, or other routine maintenance items. |
| Greener & more sustainable |
| EVs produce fewer emissions than traditional petrol-powered cars, which can help reduce air pollution and greenhouse gas emissions. Additionally, if the electricity used to charge the EV is generated from renewable sources, the vehicle is considered zero-emission. |
| Top of the range technology |
| EVs typically have instant torque, so they can accelerate quickly and smoothly. They also tend to be quieter than petrol-powered cars. |
Compare cars and quote online 24/7
Explore the benefits of salary packaging a car through a novated lease – obtain a new quote any
time, day or night, in just a few minutes.
- Compare different cars, features and prices with multiple quotes
- Easy to understand breakdown of costs on a pay cycle basis
- Tax savings outlined over the life of your novated lease
- No obligation and hassle free
Frequently asked questions
- How does vehicle leasing work?
A novated lease allows you to bundle your finance and running costs into one
simple payment. By doing this, not only do you get a new car, but you also benefit from potential tax savings. You pay a portion of your vehicle’s costs out of your salary before tax is calculated. This reduces your taxable income and increases the money you have to spend.
Whether you’re looking to buy a new or used car, getting started is easy and
unlocking your potential savings doesn’t come at the cost of choice, flexibility and convenience. Please note the vehicle lease benefit is now available to temporary staff in addition to permanent staff.
- What is the
Electric Car
Discount?
With the Electric Car Discount provides an FBT exemption for EVs that cost below the luxury car tax threshold of $91,387 in FY2024-2025.
This means you can salary package the finance plus running costs out of your
pre-tax salary. This could reduce your taxable income, resulting in you paying less tax than you would have otherwise. This is not available on petrol cars.
- How does
Fringe Benefits
Tax (FBT) apply
to Novated
Leases?
Novated leases are required by law to have a certain amount of Fringe Benefits
Tax to be paid – it’s why pre and post tax payments are needed. With the Electric Car Discount, a novated lease on an eligible EV is FBT exempt, meaning you don’t pay any post-tax contributions – for EV’s retailing up to the Luxury Car Tax threshold of $91,387in FY2024-2025.
FBT exemption available to eligible electric vehicles up to the luxury sales tax limit ($91,387 in FY2024-2025) GST saving calculated on the FBT base value of the vehicle, up to the claimable limit unless exempt).
