For employees, it is an arrangement between you and your employer where your employer pays for your monthly vehicle lease and running costs through a combination of pre-tax income tax and post-income tax salary deductions.
Novated Leasing enables you to save on tax, costs and time. The tax benefits come in the form of reduced income tax, no FBT payable, and savings on the GST for purchase and running costs of the vehicle. Cost savings come in the form of purchasing advice, fleet pricing, access to corporate programs (where applicable) and discounts on running costs. And time savings on fuel cards, servicing costs paid by the lease provider, registration and insurance and the complexity of resale.