Key Takeaways
• Transfer the lease to your new employer (if they support novated leases).
• Continue the lease privately, paying post-tax if your new employer does not offer novated leasing.
• Payout or terminate the lease early, though there may be fees and costs involved.
Changing jobs? Made Redundant? Here's what it means for your novated lease
Since a novated lease is a three-way agreement between you, your employer, and the lease provider, changing jobs affects the structure, but not necessarily the lease itself.
1. The lease doesn’t automatically end
Your lease is in your name, not your employers. That means you're still responsible for the car and repayments, even if you leave your job.
2. Your options when changing jobs:
- Transfer the lease to your new employer
If your new employer allows novated leasing (and most do, or will as part of your offer if they know you have one), your lease can usually be transferred with a little paperwork. Once transferred, your payments will be salary packaged again.
- Take over the lease privately (as a finance lease)
If your new employer refuses to offer novated leasing, you can continue making the lease payments out of pocket (post-tax) until the lease ends. You won’t get the tax benefits, but you can keep the car.
- Payout or terminate the lease early
You can always choose to pay out the lease, refinance it, or sell the vehicle. Just note that early termination fees may apply.
3. Keep your lease provider in the loop
The sooner you tell us you’re changing jobs, the smoother the process. The more notice we have, the more we can help pause deductions, arrange private payments, and coordinate with your new employer if needed.
Written by Nicolas Jarvisto
Founder and Director
Nicolas Jarvisto is the Founder and Director of Clear Lease, with over 19 years of experience in the finance and novated leasing industries. Nicolas utilises his strong background to provide clear, practical advice on novated leasing and salary packaging to make car leasing simple and accessible for everyday Australians.
