The Novated Lease product has been part of mainstream corporate and government remuneration for over ten (10) years. It provides a win-win solution for both the employer and the employee. Lease payments from pre-tax dollars provide a lower cost of ownership - although the price of the car, your taxable income and distance travelled (therefore the FBT payable) needs to be considered.

The Novated lease is the same as a normal asset lease except for some additional documentation 'novation' which brings together the employer, employee and the finance company.

The lease payment is paid by the employer who provides the car to the employee as part of his/her remuneration. At the end of the lease period the car reverts back to the employee who may re-finance or trade in on another car. In the event that the employee's employment ceases for whatever reason the car and its financial obligations also revert to the employee. The employee can have his or her new employer sign a new novation making this a very portable product.