Novated Lease FAQ

What is a Novated Lease

A Novated lease is an arrangement between you (the Employee), your Employer and Interleasing where you can use your pre tax income to obtain a vehicle of your choice

How it Works

You select a vehicle of your liking, contact Interleasing and we arrange a Lease for you that suits your individual requirements.
You, your Employer and Interleasing sign a Deed of Novation and you take delivery of your new vehicle.
Your Employer pays the lease rentals to Interleasing (including the vehicle operating costs) on your behalf as part of your Salary arrangements.
If you leave the company before the lease expires, the Deed of Novation terminates. Your Employer’s responsibility to pay the lease rentals and vehicle operating costs ceases and you become personally responsible for these payments.
During the lease term, your Employer is responsible for the payment of Fringe Benefits Tax (FBT), which is payable to the Government to offset their loss of tax revenue from your salary. The estimated effect of FBT is calculated by Interleasing and is included in the Lease calculations to you.

Benefits of a Novated Lease

CHOICE

You choose the vehicle make and model that best suits your requirements. This can be a family sedan, a recreational vehicle, a sports car, a second vehicle to get you to and from work, etc.
You choose how long you want to keep the vehicle for and the number of kilometres you think you’ll travel. Based on this, we’ll prepare a budget for the vehicle.
You have the choice of the type of lease that would best suit you. This can be either a Finance or Operating Lease and is further explained in the Lease Options section below.

CONTROL

All of your Vehicle Operating Costs are included in the Lease.
We set your Budget after consultation with you
You control your Vehicle Expenses with our assistance
If you choose a Finance Lease, you control the sale of the vehicle at the end of the lease and any profit you make after paying out the residual value is yours to keep, free from tax.

SAVINGS

Pre-tax salary deductions reduces your Income Tax
We pass on to you the savings we obtain from our buying power for vehicles, fuel and other operating costs
All of your Operating Costs are charged to your account exclusive of GST
The lease is calculated on the GST exclusive price of the vehicle
We offer a ‘One Stop Shop’ facility to take care of all of the vehicle and lease negotiations, which saves you money, time and convenience

FLEXIBILITY

If your personal circumstances change, we can amend your Lease structure to best suit you
Through a Finance Lease, should there be significant changes to the cost of your operating costs, eg Fuel, we can amend your Lease to ensure you are not disadvantaged

SERVICE

We treat you like you’re our only customer.
Fully trained, experienced, professional consultants guide you through the Lease set up process
Experienced, professional maintenance controllers ensure you are not overcharged for maintenance at the time of servicing.

An Interleasing Novated Lease package can provide you with an after tax benefit. The amount of this benefit is largely determined by your personal financial circumstances and vehicle usage. We recommend you seek independent professional financial advice regarding the effectiveness of salary packaging a vehicle for you.

What is included in my lease?

The Interleasing Novated Lease enables you to salary package motor vehicle costs into a single monthly payment.

Interleasing offers three Vehicle Package Products:

Fully Maintained Operating Lease
Fully Maintained Finance Lease
Full Budget Finance Lease

Vehicle Selection and Sourcing

We can assist you with sourcing the vehicle of your choice and arrange test drives and demonstrations through our Australia wide dealer network.
Interleasing consultants can provide advice on:

Pricing
Vehicle options
Availability
Projected future vehicle values
Vehicle running costs
Trade ins and vehicle disposal

Our buying power allows us to obtain significant discounts from retail prices and ensure vehicle availability in most circumstances. Any vehicle that has been selected through our dealer network will be delivered on time, with a full tank of fuel and will be the most current vehicle model available.

You still have the option of choosing your own dealer, if that is your preference. Understandably though, we can make no guarantees on the quality and age of the vehicle or whether it will be delivered on time with a full tank of fuel. These negotiations and arrangements would be your responsibility.

What vehicle can I lease?

You can choose the vehicle (make, model and year) to be leased, including:

New vehicles
Second hand / used vehicles (from a dealer, auction or privately)
Your current vehicle, financed at the current market value
Personalised vehicles with the types of additions you desire.

There are no limits on the purchase price (subject to your Employer policy), provided you can meet the financial commitments of the lease and associated running costs.

The only restrictions in vehicle choice are:

Vehicles in excess of one tonne carrying capacity, such vehicles fall outside the definition of “car” for FBT purposes. You should check with your Employer to determine whether they will permit you to package these vehicles.
Vehicles without an Australian Compliance Plate
Motorcycles – they fall outside the definition of "car" and are excluded.
Vehicles that will be older than 7 years at the end of the lease.

Products and Services	Fully Maintained Operating Lease	Fully Maintained Finance Lease	Full Budget Finance Lease
Included in Funded Cost (financed)
Finance	Fixed	Fixed	Fixed
Lease Protection	Included	Included	Included
Initial Registration	Included	Included	Included
Purchase Stamp Duty	Included	Included	Included
Automatic Contract Inclusions
Repairs and Maintenance	Fixed	Fixed	Budget
Tyre Replacement	Fixed	Fixed	Budget
Registration & CTP Renewals	Fixed	Fixed	Budget
Insurance Renewals	Budget	Budget	Budget
Emergency Assistance	Fixed	Fixed	Fixed
Administration	Fixed	Fixed	Fixed
Fuel - Card	Budget	Budget	Budget
Replacement Vehicle	Fixed	Fixed	Fixed
Lease Protection Insurance	Fixed	Fixed	Fixed
Reporting	Fixed	Fixed	Fixed

What are the finance lease residual values?

There are specific guidelines for Residual Values on Finance Lease set through legislation. We recommend that you select the lowest allowable residual value to minimise the possibility that the value of your vehicle at lease end is less than the residual amount.

Lease Term (Years)	Tax Office Minimum Residual %	General Maximum Residual %
1	65.63%	70%
2	56.25%	60%
3	46.88%	50%
4	37.50%	40%
5	28.13%	30%

How long can the lease go for?

Standard lease terms are between 12 and 60 months, however in certain circumstances lease terms can vary from the standard. At the end of the lease term, options are available to extend the lease for periods of 3 months to 24 months.