What’s Included in a Novated Lease Package?
A novated lease includes more than just your car repayment. It also covers running costs like fuel, rego, insurance and servicing - all bundled into one pre-tax package.
A novated lease is more than a car loan. It’s a full-service vehicle package that bundles your lease repayments with everyday running costs, and deducts it all from your salary before tax.
Here’s what we include as standard in our fully-maintained novated leasing packages:
Lease Repayments
The base cost of your vehicle, paid at a set interval over the term of your lease. This covers the depreciation and financing of your car, with a residual (balloon) value at the end.
Registration & Comprehensive Insurance
Each year, your rego renewal is covered by the lease. No more surprise VicRoads notices. Full comprehensive car insurance is built into your package. This includes annual premiums and optional extras like roadside assistance.
Fuel & Charging
Fuel is estimated upfront and included in your regular payments. We'll give you a fuel card you can use at major petrol stations, and instructions for claiming methods for EV charging.
Tyres
Tyres wear out, your lease knows that. New tyres (and wheel alignment if needed) are budgeted for within your plan.
Servicing & Maintenance
Routine servicing, scheduled logbook maintenance and repairs are included. This helps you avoid surprise mechanic bills and make sure you get to maximise tax savings.
Extras (if you choose):
There are many extras you can claim as part of your lease funds, or add on to the car before the lease begins and package as part of the car finance, you can find the full list on our Claimable Expenses page.
How It’s Managed
All of these costs are estimated at the start and built into your regular salary deductions. You’re not pre-paying, Clear Lease forecasts what you’ll need over the life of the lease based on manufacturer guidelines & estimated kilometers driven, and smooths it out into one consistent payment.
If you over- or under-spend on running costs, your lease is reconciled at the end of each FBT year.
What’s Optional vs. Included
Some items are mandatory (like repayments, insurance, and rego), while others are optional add-ons depending on your preferences and employers policy.
Always check the breakdown of inclusions when signing your lease.
Related Information:
The Luxury Car Charge is a salary deduction used to offset the extra tax your employer pays when you lease a car above the ATO’s luxury car depreciation limit. It helps them recover the shortfall from reduced tax deductions.
Please note, this is completely separate from the Luxury Car Tax (LCT).
FBT is a tax (with a rate at 47%) applied to fringe benefits (incentives beyond salary/wages received from an employer). A non-electric car under a novated lease is a fringe benefit (electric cars are completely FBT exempt in Australia).
The employer is responsible for paying the FBT, but at Clear Lease - we use the employee contribution method (contributing post-tax funds) to offset any FBT to zero.
Yes, but it’s treated as a financial termination. You'll need to pay out the remaining lease value (and any fees), and you may lose some tax benefits. Talk to us to get a payout quote from your financier.
No, when your employer leases the car, they claim the GST credit, meaning you don’t pay GST on the purchase price. The same applies to most running costs. You will, however, pay GST if you buy the car at lease end.
Yes, if you’d like to keep the car, you simply pay the residual value set at the beginning of the lease. You can pay this from your personal funds, or refinance it separately. Once paid, the car is yours. You can also sell or trade it in and start a new lease.
Yes, if your new employer supports novated leasing, you can transfer your lease by signing a new agreement. If they don’t, you’ll need to make private repayments, refinance, or consider ending the lease.
Your lease doesn’t end if you change jobs. You can either transfer it to your new employer, pay privately until the lease ends, or choose to end the lease early.
Cars that are too old, unroadworthy, imported, heavily modified, or intended for commercial use typically don’t qualify for novated leasing. Motorcycles are also excluded under current ATO guidelines.
Luxury Car Tax (LCT) applies to vehicles that exceed the government’s set price thresholds. For the 2024–25 year, it’s $76,950 for standard vehicles and $89,332 for fuel-efficient ones. If your lease includes a car above these values, LCT may be added to your lease costs.
Please note: This is very different to the Luxury Car Charge (LCC).