If you are an employee, you may have the option to receive a vehicle as part of your salary package. Your employer takes responsibility for the lease payments while you are employed with them and you use the vehicle.

How it works

• The employee chooses a car and leases it. After discussing and securing approval from their employer.
• The employee ‘novates’ the lease to their employer, who accepts some of the employee’s obligations under the lease including responsibility for meeting lease payments
• The contract is in the name of the employee, who remains the registered owner throughout the term of the lease.
• If the employee leaves the employer, the vehicle remains with the employee who then takes on the responsibility of meeting the lease repayments.

Benefits to the employee

• Tax benefits may apply as repayments are made with pre-tax income (salary sacrifice)*
• Fixed rate for the life of the lease
• You can choose the vehicle you want!
• Option to keep the vehicle if you change employment

Benefits to the employer

• If the employee leaves the employer, the employer is not left with the unwanted vehicle.
• The employer can provide the employee with a car without having to reflect it on the balance sheet.

* Consult your accountant or tax advisor for further information about tax benefits.