Novated Lease

A novated lease is a popular salary packaging tool. It provides employees with the opportunity to include a motor vehicle of their choice as part of their salary package.

A novated lease is an agreement between an employee, their employer and the financier. The employee and their employer enter into a novation agreement with the financier, under which the lessee's obligations are transferred to the employer and the employer pays the monthly rentals from the employee's salary.

  • The potential to access vehicle discounts available to their employer
  • Fixed payments for the term of the lease
  • A choice of lease terms from 1 - 5 years
  • A tax effective form of vehicle financing for the employee

If the employee changes their employment during the term of the novated lease, the payment obligations reverts to the employee. The employee may, however, be able to novate the lease to their new employer. This means an employer will not be left with any unwanted vehicles if an employee moves on.

Novated Lease Vehicle Package

You can also have a novated lease vehicle package; this has been designed to provide a total vehicle packaging solution which can include vehicle expenses and FBT management. An effective vehicle package management tool for employers of small to medium-sized businesses.

The following are included in the monthly lease rental:

  • Routine maintenance & servicing
  • Tyre replacement
  • Vehicle registration renewals (including CTP renewals where required)
  • Comprehensive Insurance renewals
  • Comprehensive reporting is provided to both the employer and employee
  • Caltex Fuel StarCard (provides a fuel discount off the pump price) billed on a monthly basis

To apply

To apply for a Novated Lease, simply call our Novated Leasing Centre at Toyota Fleet Management on 1300 888 870.


The information on this website is of a general nature and for information only. Nothing on this website constitutes or should be considered to constitute legal, taxation or financial advice. Before making a decision about any of the products and services featured on this website, you should consult with your own independent legal, taxation and financial advisors, who can advise you about your personal circumstances.

It is recommended that you seek appropriate advice from a taxation consultant or financial adviser. Toyota Fleet Management is a division of Toyota Finance Australia Limited ABN 48 002 435 181, AFSL and Australian Credit Licence 392536.