Australia-Wide Novated Lease & Salary Packaging Solutions
Reduce your taxable income and maximise vehicle ownership savings with a novated lease. Significant benefits available for eligible electric vehicles under current FBT exemption rules.
A novated lease is one of the most tax-effective ways for eligible Australian employees to finance a vehicle. Through a salary packaging arrangement, your lease repayments and many vehicle running costs are paid from your pre-tax salary, potentially reducing your taxable income and increasing your take-home pay.
A novated lease is a three-way agreement between you, your employer and the finance provider. Your employer deducts the agreed lease and running costs from your salary and remits them on your behalf, while you enjoy the use of the vehicle.
Tigris Finance helps employees throughout Australia compare novated lease solutions across leading providers and lenders. We help you understand the true savings, compare vehicle options and structure the right lease for your circumstances.
Why Australians choose novated leasing
Novated leasing can provide significant tax savings because lease repayments and eligible running costs are generally paid from pre-tax income. These savings can be particularly attractive for higher income earners and employees whose employers support salary packaging arrangements.
Eligible electric vehicles (EVs) may also qualify for the Federal Government's FBT exemption, creating substantial additional savings compared to traditional vehicle ownership methods.
What's included in a novated lease?
Depending on the package selected, a novated lease may include:
Novated lease solutions with Tigris Finance
Tigris Finance is a Brisbane finance brokerage helping employees across Australia access tailored novated lease solutions. We compare multiple providers to ensure you receive the right vehicle, right structure and the right lease term for your needs.
Whether you're considering a petrol, hybrid or electric vehicle, we can model the potential savings and explain the advantages and obligations before you commit.
Process at a glance: confirm employer participation, select your preferred vehicle, compare novated lease options, review the projected savings and complete the approval process. Most novated leases settle once vehicle availability and employer arrangements are confirmed.
What you'll find on this page: how novated leasing works, tax and salary packaging benefits, EV FBT exemptions, common questions and alternative vehicle finance options.
How a novated lease saves you money
Tax savings on lease repayments.
The lease repayment comes out of pre-tax salary, so you save income tax at your marginal rate (32.5%, 37% or 45% for most full-time workers).
Tax savings on running costs.
Fuel, insurance, registration, servicing, tyres and roadside cover are bundled into the lease and also paid pre-tax.
GST savings on the purchase.
The finance company claims the GST on the vehicle purchase, so you finance the GST-exclusive price (saves ~9% on the cap-cost upfront).
FBT exemption on EVs.
Eligible electric vehicles (BEV and PHEV) under the luxury car tax fuel-efficient threshold attract zero FBT on the novated lease, which often makes EVs the cheapest novated lease option by a wide margin.
No deposit required.
Most novated leases are 100% financed. You don't tie up cash on a deposit, and the residual at end of term sits within ATO-set guidelines.
Novated Lease FAQs
Do I need my employer's permission for a novated lease?
Yes. The employer has to agree to deduct the lease payments from your pre-tax salary and remit them to the lease company. Most Australian employers are set up for this with at least one novated provider. Some have an exclusive arrangement; others let you choose.
What happens to my novated lease if I change jobs?
The lease is yours, not your employer's. If you change jobs, you take the car and the lease with you. Your new employer either novates the existing lease (most do) or you self-finance the lease privately until you find one that does.
Can I novate any car?
Almost any new or used passenger vehicle under 4.5 tonnes, including utes (within personal-use limits). Some lenders restrict on age (typically no more than 7-12 years old at end of lease term) or vehicle type.
How much can I save with an EV novated lease?
Substantial. Under the FBT exemption, a $60,000 EV on a 5-year novated lease can save a 37% marginal-rate taxpayer $20,000-$30,000+ over the lease term versus owning outright. The savings model is highly individual; we'll run the actual numbers for your situation.
What's the residual at end of a novated lease?
ATO-set guidelines based on lease term: roughly 56.25% residual at 2 years, 37.5% at 4 years, 28.13% at 5 years. At end of term you can pay the residual to own the car, refinance it, sell to clear, or trade up to a new novated lease.
Related services
Where novated lease isn't quite the right fit, one of these probably is:
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