

A novated lease is a lease between an employee and the lease provider which is paid by the employer. It allows for the employee to source a vehicle and have it paid through their pre- tax pay. The lease obligation ultimately vests with the employee but the payments are managed by the employer.
Pros
employee leaves they take lease
obligation with them
available
employer
Cons
agreement is going to work
- the more KM’s driven, the less FBT
upon termination of the employees
employment
Businesses who have a current equipment lease and need a ‘like for like’ replacement.
Subject to type of facility selected, see Commercial Hire Purchase, Finance Lease,
Chattel Mortgage.