Novated FAQs
Still have questions? Read through our helpful FAQ's
or Contact Us and we can help find your answer.
What is a Novated Lease?
A Novated Lease could be a flexible and convenient way to finance and run your car. The three way agreement between you, your employer and FleetPartners allows you to package the finance and running costs associated with your car, directly from your salary. This allows you to potentially save on GST and income tax on the use of your car.
Why choose a Novated Lease?
A Novated Lease is flexible, convenient and offers you great benefits:
- Save on the purchase price of a vehicle by accessing our buying power
- Tax savings: save GST on the purchase price, as well as GST on running costs
- Access our preferred supplier network and save on ongoing maintenance and tyres
- Convenient payments straight from your salary
- Enjoy the convenience of FleetPartners managing your vehicle expenses for you
- Enjoy the flexibility of designing the package to suit your needs
What is included in my Novated Lease?
Your Novated Lease includes your car finance and could include the following running costs:
- Fuel
- Servicing/maintenance
- Tyre replacements
- Registration renewals
- Comprehensive insurance
- Roadside assistance
- Accident management
We also offer a range of products designed to give you peace of mind, and to protect your car from wear and tear.
What kind of car can I choose?
The choice is yours!
- New – access our buying power or negotiate with your own dealer
- Used vehicles
- Your existing vehicle under a Sale and Leaseback
There are restrictions on used vehicles, speak to your novated consultant for more details.
How is my Novated budget calculated?
FleetPartners will calculate the running cost budgets on your chosen vehicle based on how many kilometres you expect to travel each year. If your circumstances change and you find you are driving more or less than expected, we can revise your budget to reflect your current use.
At the end of your lease, we reconcile your Novated Lease and return any unspent budget to your employer, who will process it back to you less PAYG.
You can keep track of your budgets through our online portal, MyCar.
How are the running costs managed?
FleetPartners do it all for you! Fuel cards are issued for your convenience; servicing, maintenance and tyres are organised and paid for directly to the supplier.
If you have opted for FleetPartners to arrange your comprehensive insurance you can be assured that your cover is in place for when you drive away. If you choose to include your own comprehensive insurance in the package, you can simply pay your insurer and claim the cost back as a reimbursement.
We can pay registration renewals directly or again, you can pay it yourself and claim the cost back through the package.
We want to make things as easy as possible for you. A Novated Lease can be a paperless transaction once the package begins, and you have the ability to review and adjust your budget at any time.
What happens if I change jobs?
There are a number of options to consider if you change jobs during your lease term:
- You could transfer your novated lease to your new employer
- Continue to make your monthly lease payments under the existing finance agreement (less any previously included running costs)
- Make an offer to purchase the vehicle and payout the lease (including residual value amount).
What happens if I go on unpaid leave?
If you go on unpaid leave for any reason (including maternity leave), you will need to continue paying the finance rental and running costs yourself. Once you return to paid work, your Novated Lease can recommence being deducted by your employer from your pay and you can again access the potential tax savings and convenience.
What happens at the end of my lease?
FleetPartners will contact you before your lease is due to end and walk you through options. These may include:
- Paying the residual value amount and take full ownership of the vehicle.
- Refinance the residual for an additional term.
- Upgrade! You may find it costs no extra to enter into a new lease on a new car
What is Fringe Benefits Tax (FBT)?
The FBT regime was developed as a way of taxing non-cash benefits which are received in place of cash wages. The provision of an owned or leased car is an example of such a benefit.
Without the FBT regime, employers could provide non-cash benefits to their employees free of tax. Employers have been made responsible for administering fringe benefits and for payment of the liability.
If I have an accident do I have to sort it out?
This is a traumatic event and with one phone call we can take care of everything. From advising the driver on the scene and handling all the necessary documentation, to the repair process and handing the keys back to the driver. We even liaise with your insurer to arrange the repair estimates as well as manage the repair agent to ensure the downtime is kept to a minimum.
If the vehicle breaks down what am I covered for?
You can choose to have Accident and/or Breakdown management added to your contract. Call OneCall and we will arrange for someone to come out to either repair your vehicle on the roadside or tow it to an agent who can get you on your way again.
If the vehicle has to stay at the garage we can arrange for you to carry on to your destination or return home. Should you need a temporary vehicle we provide you a temporary vehicle service to keep you mobile.