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Novated Leasing, Explained

Before you decide whether a novated lease is right for you, it's worth understanding how one actually works — the agreement, the payments, and where the savings come from. Here's the mechanics, in plain language.

What is novated leasing?

A novated lease is a three-way agreement between you (the employee), your employer, and Endeavour Fleet. Your employer agrees to make payments on your behalf directly from your salary, before tax is calculated — which reduces your taxable income.

That single, regular payroll deduction covers both the vehicle's finance and its running costs — things like fuel or electricity, insurance, registration and servicing — so instead of juggling separate bills, it's all bundled into one amount that comes out of your pay each cycle.

4 key benefits

01
Tax Savings

A portion of your car's finance and running costs is deducted from your salary before tax, which can reduce the amount of income tax you pay.

02
Vehicle Purchase Savings

Endeavour Fleet's buying power can secure fleet-level pricing, and GST is generally saved on the vehicle's purchase price when bought through a dealer as part of a novated lease.

03
Running Cost Savings

We manage your servicing, repairs and other running costs on your behalf, helping you avoid being over-charged and keeping costs predictable.

04
Convenience

One regular payment covers your car's major running costs, with account visibility so you always know where your balance stands.

What's included

Your packaged payment covers the major costs of running your vehicle.

Lease Finance
Registration & CTP
Comprehensive Insurance
Tyres & Repairs
Servicing & Maintenance
Fuel
Roadside Assistance

A worked example

Numbers make this easier to picture. Meet Alex, a $110,000/year employee leasing an eligible electric vehicle over 3 years.

Illustrative breakdown
Gross annual salary
$110,000
Effect on take-home pay
$255/week
Approximate taxable income after packaging
~$88,533
Estimated saving over the 3-year term
~$24,644

Illustrative example only, not a quote.

Based on an illustrative electric vehicle priced at $65,000 (under the $91,661 luxury car tax threshold for the EV FBT exemption), a 3-year lease, 15,000km per year, and a $110,000 salary. Example only, your figures will vary.

What's excluded

Under ATO guidelines, a novated lease can't cover the following:

  • Road tolls and e-tag expenses
  • Fines and infringement notices
  • Aftermarket accessories fitted after purchase
  • Hire car costs

Common Questions

See all FAQs

Ready to see your numbers?

Work out an illustrative estimate for your own salary and vehicle in a couple of minutes.

Work Out Your Estimate

The content of this website is general information only. All calculations and figures are illustrative examples, not a quote or offer of finance, and do not account for your personal circumstances. Endeavour Fleet recommends you seek independent financial, legal and taxation advice to determine whether a novated lease is right for you. Whilst we provide this information in good faith, it may contain errors and should be verified before you rely on it.