Novated Lease Pros and Cons: An Updated Guide for Australian Drivers 🚗🇦🇺
A novated lease is a 3‑way deal between you, your employer and a finance provider. Your employer typically covers lease payments and running costs from your pre‑tax salary, trimming your assessable income and boosting take‑home pay. Leases usually run 1–5 years with a balloon at the end to own, refinance, or return the car (per contract).
EV incentives and policies are evolving, so it’s a great time to revisit who wins, the benefits, and the pitfalls. Who benefits? Salaried employees seeking tax efficiency, convenience, and a new car without a big upfront cost.
