How novated leasing works
Partnering with FleetPartners makes taking out and managing a novated lease simple. Here's how it's set up.
A three-way arrangement
You, your employer and FleetPartners enter the novated lease agreement. FleetPartners pays for the car and sets up the budgets for your running costs, your employer deducts your lease payments directly from your salary, and you get to enjoy the open road in your dream car.
Pre-tax payments reduce your taxable income
Because your payments can be made partly from your pre-tax salary (or all before tax if you're using a novated lease to get an eligible electric car), your taxable income is reduced, which means you pay less income tax on a lower amount.
Everything bundled into one payment
Finance, fuel/charging, insurance, registration, servicing and tyres are all included in a single payment. No more stressful budgeting and no more unexpected bills.
Example: Toyota RAV 4 Cruiser AWD
Your gross salary: $110,000
Novated lease from $318/wk*
including budgeted running costs
Save up to $13,251 over 5 years
Choosing an EV?
Battery electric vehicles under the Luxury Car Tax threshold may be entirely FBT-exempt, meaning your entire payment could come from pre-tax salary for even greater savings
The benefits of leasing with FleetPartners
From your first novated lease quote to the end of your lease term, a FleetPartners novated car lease is designed to save you money and remove the stresses of car ownership.
Income tax savings
Payments taken in part from your pre-tax salary reduce your taxable income, so you could pay significantly less income tax over the life of your lease.
GST savings on purchase
Save GST on the purchase price of a new car (up to the ATO limit).
GST savings on running costs
Save GST on fuel, servicing, tyres, insurance and more over the life of your lease.
One bundled payment
Finance, fuel, registration, insurance, servicing and tyres, all rolled into a single payment.
Your choice of car
Score a new or used car, or even novate your existing car via a ‘sale and leaseback’ arrangement. You choose the make, model, colour and accessories, FleetPartners does the rest.
National buying power
Competitive pricing through our national dealer network means you're unlikely to get a better deal elsewhere.
No hidden fees
There's no brokerage or commission payable on top of your finance rate with a FleetPartners novated car lease.
End-to-end support
From sourcing the vehicle and negotiating a great price to managing insurance, rego and accident support through the life of your lease, we're here to make your journey easy. We can even help you sell your car at the end of your lease.
Calculate your potential novated lease savings in minutes
Every situation is different. Our novated lease calculator gives you a personalised savings estimate in minutes - just enter the car you want and your salary.
Save even more with an electric vehicle novated lease
Thanks to the Federal Government's Fringe Benefits Tax (FBT) exemption, if you use a novated lease to get behind the wheel of an eligible electric car, your entire novated lease payment comes from your pre-tax salary - including all running costs. For many people, that means saving thousands more on tax every year, and the opportunity to drive an EV for the same cost as a cheaper petrol equivalent.
This FBT exemption is only available through a novated lease.
The EV FBT exemption arrangements are changing from 1 April 2027. If you're considering securing an eligible electric vehicle through a novated lease, it's worth acting quickly to benefit from the current exemption. Get in touch to discuss your options.
Tesla Model Y Premium Model — weekly cost comparison
Novated lease (FBT exempt, paid from pre-tax salary):
including budgeted running costs
from
$225/wk*
Traditional car loan (paid post-tax):
finance only; running costs paid separately
from
$374/wk*
Example saving on a Tesla Model Y:
$30,168
over 5 years*
Your saving could be higher or lower depending on your salary and vehicle choice *Novated lease: $110,000 salary, QLD, 12,000km/yr, 60-month term, ECM method. Car loan figure for illustration only; assumes 7.2% p.a. interest over equivalent term. Individual results will vary.
Our latest novated lease deals
By taking advantage of our exclusive dealer relationships, FleetPartners offers competitive novated leasing deals across Australia's most popular vehicles.
-
Hybrid
BYD
SHARK 6 PA PREMIUM 1.5 4-DOOR D/CAB UTE AWD AUT PREM UNLEADED PHEV
Ends 31/12/2026
-
Diesel
MITSUBISHI
TRITON MV GSR 2.4 4DR D/CAB UTILITY 4x4 6SPD AUT DIESEL
Ends 31/12/2026
-
Unleaded
MITSUBISHI
OUTLANDER ZM ASPIRE 2.5 5DR SUV FWD CVT UNLEADED 7SEATS
Ends 31/12/2026
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Unleaded
MAZDA
CX-30 PURE 2.0 5DR SUV FWD 6SPD AUT UNLEADED
Ends 31/12/2026
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Unleaded
HYUNDAI
TUCSON NX4.V4 - 1.6 5-DOOR SUV FWD 6SPD AUT UNLEADED HEV
Ends 31/12/2026
-
Diesel
FORD
EVEREST UB TREMOR 3.0 5DR SUV 4WD 10SPD AUT DIESEL 7SEATS
Ends 31/12/2026
-
Prem Unleaded
TOYOTA
RAV4 AXAL62R GXL 2.5 5-DOOR SUV FWD CVT PREM UNLEADED HEV
Ends 31/12/2026
-
Electric
GWM
ORA 5 EC15S ULTRA 5DR SUV FWD AUT BEV 58 KWH
Ends 31/12/2026
-
Electric
KIA
EV5 GT-LINE 5DR SUV AWD AUT BEV 88 KWH
Ends 31/12/2026
-
Electric
MERCEDES-BENZ
CLA C174 4DR COUPE RWD 2SPD AUT BEV
Ends 31/12/2026
-
Electric
GEELY
EX2 INSPIRE 5DR HATCHBACK RWD AUT BEV 47 KWH
Ends 31/12/2026
-
Electric
MERCEDES-BENZ
GLB ELECTRIC X244 5DR SUV RWD 2SPD AUT BEV 7SEATS
Ends 31/12/2026
-
Electric
BMW
IX3 NA5 5DR SUV RWD AUT BEV 87 KWH
Ends 31/12/2026
-
Electric
MERCEDES-BENZ
GLB ELECTRIC X244 5DR SUV 4MATIC 2SPD AUT BEV 7SEATS
Ends 31/12/2026
-
Electric
KIA
EV6 LONG RANGE GT-LINE 5DR SUV AWD AUT BEV 84 KWH
Ends 31/12/2026
-
Electric
HYUNDAI
IONIQ 5 NE.V7 N LINE PREMIUM 5DR SUV AWD AUT BEV 84 KWH
Ends 31/12/2026
-
Electric
POLESTAR
4 SUV 815 5DR SUV 4WD AUT BEV 100 KWH
Ends 31/12/2026
-
Electric
TESLA
MODEL Y L PREMIUM LONG RANGE 5DR SUV AWD AUT BEV 79 KWH 6SEATS
Ends 31/12/2026
-
Electric
ZEEKR
7X CX1E PERFORMANCE 5DR SUV AWD AUT BEV 100 KWH
Ends 31/12/2026
Frequently asked questions
Common questions about novated leasing in Australia, answered.
What is a novated lease and how does it work?
A novated lease is a three-way agreement between you, your employer and FleetPartners. Your car finance and budgeted running costs are paid from your salary before income tax is deducted, reducing your taxable income. The vehicle is registered in your name and available entirely for personal use. At the end of your lease, you pay the ATO-set residual value to take ownership, or you can refinance or upgrade to a new car.
How much could I save with a novated lease in Australia?
Savings depend on your salary, the vehicle you choose and how much you drive. Most people save on two fronts: income tax (by making payments partly from pre-tax salary) and on GST (up to $6,353 on the purchase price of a new car, plus GST on running costs). Choosing an eligible electric vehicle may significantly increase your savings through the government's FBT exemption. Our obligation-free calculator gives you a personalised estimate.
How does the FBT exemption work for an electric vehicle novated lease?
Eligible battery electric vehicles (BEVs) first held and used on or after 1 July 2022, where no luxury car tax has been payable, may be exempt from Fringe Benefits Tax. For eligible EVs, your entire novated lease payment could be drawn from your pre-tax salary. The Luxury Car Tax threshold for 20265-276 is $91,661. Note: eligible BEVs still attract a reportable fringe benefit amount on your annual payment summary, which may affect certain government benefits.
What is included in a fully maintained novated lease?
Your budgeted running costs can include registration, comprehensive insurance, fuel or EV charging (at a flat rate of 5.47c per km as set by the ATO), scheduled servicing and maintenance, and tyres. At the end of your lease, actual spend is reconciled against the budget - any surplus is refunded through payroll; any shortfall is payable by you.
Can I use a used car or my existing car for a novated lease?
You can lease a new car, a used car, or even a car you already own through a Sale and Leaseback arrangement. The vehicle must be designed to carry fewer than 9 passengers and less than 1 tonne load (ATO definition). For used vehicles, the car must be under 150,000km at lease start and under 12 years old at lease end.
What happens to my novated lease if I leave my job?
When you leave your employer, your novated lease reverts to a direct finance lease between you and FleetPartners. You can then continue making payments directly to FleetPartners for the remainder of the term; transfer the lease to a new employer offering novated leasing; or terminate the lease early (fees and charges apply). We will work with you and your employer to make the transition as smooth as possible.
What happens at the end of a novated lease?
At the end of your lease term, you have three options: (1) pay the residual value (the minimum residual value is set by the ATO based on the lease term. For example, for a 5-year lease, the minimum is 28.13% of the vehicle cost), after which ownership can be transferred to you by FleetPartners; (2) extend the term of your lease, provided it still meets our criteria; or (3) upgrade to a new car after finalising the lease of your existing vehicle. We can even help you sell your car if that’s what you choose to do. We’ll be in touch before your lease ends to walk through all options.
Does getting a novated lease quote affect my credit score?
No. Requesting a quote - even multiple quotes - will not impact your credit score. A credit check is only recorded on your credit file if you decide to proceed with a full novated lease application.
Information is general in nature and does not constitute financial or tax advice. Speak to your accountant about your specific circumstances. Subject to ATO guidelines as at 01/07/26.
Get your obligation-free novated lease quote
Fill in your details and a FleetPartners novated leasing specialist will be in touch.
We'll be in touch within one business day to discuss your needs
We'll confirm that you're eligible for a novated lease through your employer
We'll put together a personalised vehicle quote tailored to your budget
Already a FleetPartners novated driver?
ARE YOU AN EMPLOYER?
Looking to offer novated leasing to your team?
Novated leasing is an attractive employee leasing solution that’s available to Australian businesses - and it costs you nothing to offer. FleetPartners manages most of the employer administration, so your team gets the benefit without you carrying the burden.
* Figures are based on the following criteria: 1) FleetPartners Novated Lease 2) Gross annual salary of $110,000; 3) QLD on road costs; 4) Travelling 12,000km p.a.; 5) 60-month lease term; 6) calculated using the Employee Contribution Method (ECM); 7) Assumed residual value based on residual percentage outlined by ATO guidelines as at 01/07/24; 8) Payments made monthly in arrears; 9) Budgeted running costs inclusive of vehicle finance, fuel (if applicable), servicing, 4 tyres over the lease term, scheduled maintenance, comprehensive motor vehicle insurance for a driver with no at fault claims in the past 5 years and re-registration over the period of the lease; 10) FBT exemption applied to eligible Electric Vehicles (if applicable) and GST saving up to $6,334 (as per ATO guidelines as at 01/07/24). The exact residual amount, as set by the ATO, will be specified in your vehicle quote and is payable at the end of the lease term. Vehicle pricing is indicative and correct at the time of publishing but may be subject to change based on vehicle availability or the options specifications and accessories selected. Vehicles must be ordered before 31/12/26 (unless extended) via the FleetPartners preferred dealer network. Savings estimate based on the tax savings of a Novated Lease calculated using the Employee Contribution Method compared to the financed purchase of the same vehicle over the same term at an equivalent interest rate paid from post-tax earnings. All applications are subject to eligibility and credit approval criteria. Terms and conditions, fees and charges apply.