Novated lease
Drive smarter business: Explore the benefits of novated leases
Novated leasing is a smart financial move that maximizes tax savings by using pre-tax income for car expenses. Enjoy flexibility in choosing your preferred vehicle, simplified budgeting with a single payment, and peace of mind without worrying about depreciation. Experience a tax-efficient and stress-free driving solution with novated leasing.
Register your interest
Why novated lease?
Novated leasing offers several benefits that make it an attractive option for both businesses and employees
Tax savings
Unlock substantial tax benefits by paying for your car-related expenses, such as lease payments, fuel, and maintenance, with pre-tax dollars. This means more money stays in your pocket, and you pay less tax overall.
Financial control
Take charge of your budget with a single, easy-to-manage payment that covers all your car-related costs. No more juggling multiple bills – streamline your finances and enjoy a hassle-free driving experience.
Flexible terms
Tailor your novated lease to fit your needs. Whether you want a short-term commitment or a longer arrangement, the flexibility of novated leasing allows you to align the terms with your lifestyle and financial goals.
Choice of vehicle
You have the freedom to choose the car that suits your lifestyle without being limited to a specific make or model. From fuel-efficient compacts to stylish SUVs, the choice is yours.
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Frequently asked questions
on novated lease
A novated lease is a three-way agreement between an employee, their employer, and a leasing company, allowing the employee to lease a car using pre-tax income.
A novated subscription is a type of car subscription where you effectively lease a fully maintained car through your employer. The benefits of this arrangement are that your employer can sacrifice a portion of your salary (pre- and post-tax) to cover the cost of the car subscription.
Because it is being run through a business, you immediately save on GST and depending on your circumstances, could save through pre- and post-tax contributions. This effectively gives you all the benefits of a fully maintained car while potentially reducing the amount of tax you pay. There could be further savings for eligible cars that are zero or low emissions vehicles that are exempt from Fringe Benefits Tax (FBT) and first held and used after 1 July 2022*
There are a lot of different options out there when it comes to car ownership, and more and more people are opting for car subscriptions instead of traditional methods like financing, novated leasing or buying.
So, what exactly is a novated car subscription?
Put simply, a novated car subscription is basically a salary sacrifice arrangement where you get your employer to cover the cost of your car. Rather than pay for your car with post tax income, you pay through payroll with a combination of pre- and post-tax salary. This way you can reduce the amount of taxable income you will pay and could save money on tax.
Because car subscription rolls all costs of car ownership into a simple weekly payment, you could save money (GST and tax-savings) across car, registration, insurance, maintenance and servicing costs.
There’s no need to feel overwhelmed when researching how to apply for a novated car subscription. The process is actually quite simple and can be easily completed in just a few steps.
First, you will need to talk to your employer as they will need to sign an agreement with carbar to offer this benefit through payroll. Once the employer agreements are signed, you will need to register your interest using the form below. We'll then help you find the make and model of car that you’re interested in, share the calculations for your weekly pricing and if you're happy, submit your order.
If your employer approves the order, we’ll work to secure the car and organise for it to be picked up or delivered to you. Payroll will pay your subscription and you get some new wheels. It’s that easy.
When it comes to a carbar car subscription, you can stop or swap with just 2 weeks notice.
At the end of a novated EV subscription, it is important to finalise your arrangement with your employer also. Your novated car subscription is pretty straightforward and easy - once you wish to stop, you can simply end the subscription after two weeks and hand over the keys.
Many people choose to extend their subscriptions, but most importantly, when you end your novated car subscription, you won't be left with a huge bill or anything like that.
It’s just an easy way to keep driving a car without having to worry about ownership.