![group of people looking over novated lease vehicle costs](https://clearlease.com.au/wp-content/uploads/2024/08/The-Ultimate-Guide-to-Using-a-Calculator-for-Novated-Lease_-Your-Key-to-Financial-Planning-300x169.png)
Busting Common Novated Leasing Myths
Novated leasing is a popular option for Australians looking to finance a vehicle, but it often comes with misconceptions. Let’s debunk some common myths.
Novated leasing is a popular option for Australians looking to finance a vehicle, but it often comes with misconceptions. Let’s debunk some common myths.
The 2025 financial year brings several government benefits and incentives for individuals and businesses considering a novated lease.
Whether it’s increasing your superannuation savings, leasing a car, or enjoying other fringe benefits, understanding how salary sacrificing works and how to implement it can lead to significant advantages.
A novated lease is an agreement between you, your employer, and a finance company.
Novated leases offers tax benefits and simplified management of vehicle expenses.
Residual value is the estimated worth of the car at the end of your novated lease term. The residual value is based on various factors, primarily set by the Australian Tax Office but also includes the initial purchase price, its expected depreciation, and general residual value guidelines from your leasing provider.
Benefits of a novated lease include tax savings, convenience, flexible car choices, no hidden costs, and more.
If you have a novated lease and your company is undergoing changes such as a merger, acquisition, or reorganisation, it will impact your novated lease.
Some signs that it’s time to upgrade your car include rust appearing, odd smells, unusual smells, exhaust smoke, and more.
Considerations for a novated lease include tax benefits, flexibility, budgeting, employer involvement, end-of-lease options, personal circumstances, and employment stability.