Most Electric and Hybrid Vehicles are now exempt from FBT & carry significant savings – now saving up to 45% on your vehicle and running costs!

Read more: Save more with Electric and Plug-In Hybrid Novated Leases

You bet! And we’re darn good at it! Our relationships with dealers give us access to vehicle stock that the general public don’t have access to. With our bulk buying power we can often negotiate better pricing and preferential supply. In the current climate, vehicle availability is scarce, let our team do the leg work for you and get you into your dream car sooner.

The residual value is set by the ATO and is a percentage based on the price of the vehicle. The residual varies depending on the term of your lease. This calculation forms one of the metrics in our quote from your novated lease consultant. At the end of the term, you do not have to pay this amount out of your own funds. You have 3 options at the end of your lease.

  1. Sell / trade the vehicle and upgrade to a new vehicle and a new lease. (most common)
  2. Keep your car and refinance the residual over a further term of your choosing.
  3. Pay out the residual by any other means (but you may lose some tax benefits)

Absolutely! We pride ourselves in building relationships, your account manager will look after you every step of the way throughout your lease and beyond.

Check out our handy list with all the details of what you can and can’t claim for your vehicle.

Claimable Expenses – Clear Lease


Same process as usual through your driver portal. Your link will change to https://clearlease.drive-portal.catch-e.com/en/login/

For new leasers your details will be set up and issued at the beginning of your Novated Lease, our team are here to help every step of the way.

Our team is always here to help you through any queries you have. The same great team, the same great service!

  • 1300 728 702 for Maintenance
  • 1300 131 050 for Sales
  • 1300 242 280 for General enquiries.
  • 1300 282 043 for Roadside Assistance


If you are full time or permanent part time and your employer supports salary packaging – you’re eligible.

A novated lease is a three-way agreement between you, your employer and Clear Lease that bundles together all the finance and running costs of your car and allows you to pay with pre-tax dollars.

  • Tax and gst savings
  • Budgeted running costs
  • Payments are made from your pre tax income as opposed to paying for your car loan with your post tax income.
  • We take care of all of your vehicle costs on your behalf so you so you don’t have to worry about it.
  • Vehicle finance
  • Comprehensive insurance (or you can arrange your own)
  • Registration
  • Fuel
  • Maintenance such as servicing, tyres, battery replacement and repairs
  • Roadside assistance
  • Plus awesome Clear Lease service

GST is payable on the sale of most new and used vehicles where the seller is registered for GST (e.g. a dealership). With a leased vehicle, the vehicle is sold to the lender who then in turn leases it to you. The lender pays the full amount of the sale price of the vehicle to the supplier, who then passes the GST on to the Australian Tax Office. As GST cannot be paid twice on the same transaction, the financier claims the GST component that they have paid to the supplier back from the ATO (up to a maximum of one-eleventh of the current Luxury Car Tax Threshold). This refund of the GST is known as an Input Tax Credit (ITC).

Because of the ITC claim, the GST on your vehicle is reduced or eliminated, and the financier essentially leases the vehicle to you at the full sale price less the GST component. In addition to the GST on the sale price of the vehicle, GST is payable on lease and operating costs, a portion of these can be refunded back to you as your employer claims an ITC, therefore making your novated lease partially exclusive of GST.

  • The residual value (sometimes known as a balloon payment) is the amount of money remaining on your car at the end of the finance period. This amount is fixed and attracts gst. The residual value is calculated at the beginning of the lease and is payable at the end of the term.
  • The minimum residual value is set by the ATO and is usually expressed as a percentage of the amount financed.
  • Once your lease term expires you’ll need to pay the residual value. Or you may have the option to re-finance your car for another term.
  • If the market value of the vehicle is less than the residual value, the resultant shortfall will be your responsibility. Likewise, should the market value be more than the residual value, the surplus shall be yours to keep (tax free)!

You’re available to choose any car, any make, any model from anywhere within australia. This can be:

  • A new car (get access to fleet discounts for the very best price)
  • A second-hand car (with some restrictions for age and value)
  • Your current vehicle (under a sale and lease-back arrangement)

If you leave your employer for any reason, your lease agreement (the deed of novation) terminates immediately.

Don’t worry there are plenty of options we can help you with.

You can then choose to either:

  • Continue your monthly lease payments yourself (un-novated)
  • Pay out the remaining amount of the lease (including the residual value) and keep or sell the car
  • Transfer your novated lease to a new employer

When your employer provides you as the employee with a benefit as part of your employment, the benefit may be subject to FBT. It’s a Federal Government tax, payable on the value of certain fringe benefits. Salary packaging a vehicle is concessionally treated for FBT purposes and therefore may be very tax-effective.

When a vehicle is salary packaged via a novated lease, FBT is usually calculated using the statutory formula method. This method calculates the FBT payable each year by applying a statutory percentage to the vehicle’s FBT base value (the purchase price minus government charges). This is multiplied by the number of days that the vehicle is available to you, grossed-up by a factor (normally 2.0802) and then multiplied by the FBT rate (currently 47%).

No distinction is made between business and private use so a novated lease using the statutory formula method will be attractive to you if you don’t use your car for business use.

FBT is calculated based upon the FBT year, which runs from 1 April to 31 March.

We know life never works out as planned but your novated lease is flexible enough to keep up with your life. Your running cost budget can be altered at any time to reflect any change in circumstances. Any unspent money can be reimbursed through your payroll at any time if you feel you have an unnecessary surplus.

You can package as many vehicles as you’d like, as long as your employer agrees and you’re able to service the monthly payments. You can extend the benefits of novated leasing to more than one car.

Chat with us about your car leasing options if you’d like to package up two or more vehicles.

There are a few reasons that an employer would choose to offer a novated lease option for their employees.

  • It helps to attract and retain top employees who appreciate the flexibility of salary packaging
  • Allowing you access to your pre-tax wage has a similar effect to a pay-rise, with none of the costs to your employer.
  • Your employer will not need to supply and manage a company vehicle for you to use for business travel

Yes you can! The only condition is that the car isn’t more than 12 years old at the end of the lease term.

The ECM enables you to reduce your FBT liability by making post-tax contributions towards the operating costs of your vehicle. The recommended method is to contribute an amount equivalent to the taxable value of the vehicle thereby reducing it to zero. Providing you travel the nominated kilometres per annum, this reduces the FBT liability to zero. “Why would I make after tax payments towards my vehicle when salary packaging is supposed to reduce my gross salary so that I pay less income tax?”

That’s a common question! The simplest answer is that by making a payment after tax toward the running costs of the vehicle, you can offset any FBT liability.

The ECM can be applied to both types of novated lease packages. With the fully maintained novated lease, the required amount of your post-tax contribution is calculated as part of your package and shown in the salary package confirmed estimate.

With a non-maintained novated lease, you will keep receipts for operating costs that you’ve paid and submit these (along with a vehicle declaration form) to your employer at the end of the FBT year – 31 March. Your employer will then adjust the taxable value of the vehicle by the amount of the receipts, removing some or all the FBT liability from your salary package.