How does a novated lease work?

This three-way agreement between you, your employer and one of the novated leasing panel’s financiers allows you to use a combination of your pre and post-tax salary for the running costs associated with your vehicle. These costs are bundled into one regular payment, allowing you to budget for your car in a more efficient manner.

What if I change jobs, or lose my job?

You may be able to transfer your lease to your new Qld Government department or a different employer, or you could choose to:

• Take over the novated lease and running costs using your own post tax salary; or
• Pay out the lease and purchase the car from the financier and own it outright.

Just call us and we’ll explain what you need to do. It’s important that you let us know if you change employer because your current lease arrangement will expire.

Please note:  If you work with QLD Health and change your role within the organisation, it may affect your FBT cap eligibility. If you are unsure, please check with your employer. More information can also be found in the Queensland Health Information Booklet.

What happens at the end of the novated lease?

Before your novated lease expires, we will be in touch to discuss what direction you would like to take at the end of your novated lease, these include:

• Take out a new novated lease.  Upgrade to the latest model to continue enjoying the convenience and potential tax savings of a novated lease.
• Refinance the car.  Extend the arrangement of your current car by refinancing the residual amount with one of the novated leasing panel’s financiers.
• Keep the car. Purchase your current car by paying the residual amount.