Question 1

How does a novated lease work?

Accepted Answer

A novated lease is a three-way agreement between you, your employer and Endeavour Fleet. Your employer deducts an agreed amount from your salary — a mix of pre-tax and post-tax dollars — and Endeavour Fleet uses those deductions to pay your car's finance and running costs on your behalf.

Question 2

What does a novated lease include?

Accepted Answer

A novated lease bundles your car's major running costs into one regular payment, including:: Lease finance; Comprehensive insurance; Registration and CTP; Fuel or electricity; Servicing, tyres and repairs; Roadside assistance

Question 3

What is a residual value?

Accepted Answer

The residual value is the amount owing on the vehicle at the end of your lease term. Minimum residual values are set by the ATO. At the end of the term you can refinance for a further period, or pay the residual to take ownership outright (GST applies to that purchase).

Question 4

What isn't included in a novated lease?

Accepted Answer

Under ATO guidelines, the following can't be included in your novated lease:: Road tolls and e-tag expenses; Fines and infringement notices; Aftermarket accessories fitted after purchase (tow bars, roof racks, etc.); Hire car costs and associated fuel

Question 5

How do I submit a claim, and when will it be paid?

Accepted Answer

Claims are submitted digitally through your driver portal with an itemised receipt attached. We can only reimburse costs you've already paid for, and only once your account has accumulated sufficient funds — we can't advance funds against future salary deductions.

Question 6

Which expenses aren't claimable under my lease?

Accepted Answer

Per ATO guidelines, running costs don't include:: Tolls and parking; Fines or infringements; Aftermarket upgrades (tow bars, tinting, roof racks, home charging stations); Driver's licence renewal fees

Question 7

My car needs servicing but I don't have enough funds in my account. What can I do?

Accepted Answer

Pay for the service yourself, keep the itemised receipt, and submit it through the driver portal — we'll reimburse you as your salary deductions build the balance back up. If you need the funds sooner, contact us to discuss a budget variation with your employer.

Question 8

What's the difference between my broker and my insurer?

Accepted Answer

Your fleet policy is typically arranged through a broker, who manages administration, placement and renewals, with a separate underwriter providing the actual cover. If you're ever unsure who to contact for a claim, check your policy documents or ask us — the fleet policy has its own dedicated contact line, separate from the insurer's general retail number.

Question 9

Can I arrange my own insurance instead?

Accepted Answer

Yes, you're welcome to insure the vehicle through your preferred insurer. If you choose to arrange your own insurance, you would pay the annual premium upfront and then claim the expense back once sufficient funds have accrued in your novated lease account.

Question 10

I'm leaving my employer. What happens to my novated lease?

Accepted Answer

Your novated lease ends when your employment does. If your new employer also offers novated leasing, your lease can usually be transferred across so it keeps running under your new job. If not, it becomes a personal finance arrangement, and you'll need to arrange repayments directly with your financier once payroll deductions stop. Either way, contact us as soon as you know so we can help with the transition.

Question 11

My employer is merging with another company. What happens to my lease?

Accepted Answer

Your lease will generally need to be transferred to the new entity through a process called re-novation. Let us know as soon as you're aware of the merger so we can work with your new payroll team to keep things running smoothly.

Question 12

Is a novated lease a portable product?

Accepted Answer

Yes, if you leave your current employer and commence employment with a new employer, your novated lease can generally be transferred to your new employer, and the novation can continue, provided your new employer offers novated leasing.

Question 13

What's the difference between a payout figure and a residual figure?

Accepted Answer

Contact us directly to request either figure.: Payout figure — the total amount required to clear and close the loan right now.; Residual figure — the fixed, ATO-mandated amount owed at the end of your lease term, stated in your agreement.

Question 14

Can I have a novated lease without salary sacrificing?

Accepted Answer

No. A novated lease is by definition a three-way agreement between you, your employer and the financier, relying on payroll deductions. It can't be run from private funds alone.

Question 15

Which electric vehicles are exempt from FBT?

Accepted Answer

Eligible battery electric vehicles first held and used on or after 1 July 2022 can qualify for a Fringe Benefits Tax exemption. Plug-in hybrid eligibility has changed under current law — speak with our team for an up-to-date answer for your specific vehicle and lease start date, rather than relying on general marketing copy.

Question 16

How do I claim electricity charging costs for my EV?

Accepted Answer

You can choose to claim home charging or public charging costs. Capital costs like installing a home charger aren't claimable, as the ATO doesn't treat them as a vehicle running cost.

Question 17

Does Endeavour Fleet require a balloon payment on a novated lease?

Accepted Answer

Yes - because the ATO requires minimum residual values for novated leases.

Question 18

Can Endeavour Fleet help me calculate my balloon payment?

Accepted Answer

Absolutely. Endeavour Fleet provides a personalised quote and an online calculator that displays your residual value upfront.

Question 19

Is the balloon payment included in Endeavour Fleet's tax savings?

Accepted Answer

Whilst the balloon payment itself isn't a tax deduction, refinancing it through Endeavour Fleet may continue to unlock tax saving benefits.

Question 20

Can I negotiate the residual (balloon) value on my novated lease?

Accepted Answer

No, the residual value is determined by ATO guidelines and is non-negotiable. It's calculated as a fixed percentage based on the original price of your car and the lease term.

Question 21

Can I start a new novated lease before I finish the current one?

Accepted Answer

Yes. Endeavour Fleet helps customers transition smoothly into their next vehicle before their current lease ends.

Question 22

What happens if the car is worth less than the residual value?

Accepted Answer

If your car's market value ends up being lower than the residual (balloon) payment, you're still responsible for covering that difference.

Question 23

What happens if the car is worth more than the balloon payment?

Accepted Answer

If the car is worth more than the residual, that's a win for you - you keep any equity in the vehicle. For instance, you could sell the car and keep the difference after paying out the residual value.

Question 24

Do all novated leases have balloon payments?

Accepted Answer

Yes. All novated leases include a residual payment because it's required under ATO guidelines, which set minimum residual values to ensure the lease reflects the expected value of the car at the end of the term.

Question 25

Can you avoid a balloon payment?

Accepted Answer

Not within a standard novated lease, as the residual value component is mandated for tax reasons. But Endeavour Fleet can help you minimise its impact by choosing a lease term that best suits your budget and future plans.

Frequently Asked Questions

Novated Leasing Basics

Claims & Reimbursements

Insurance Policies

Employment Changes

Payments & Lease Structure

Electric Vehicle Questions

Balloon Payments

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