- The certainty of a fixed rental amount for the length of your lease
- A lease term generally between 12 and 60 months
- Unlimited private use of the car
- Choose the vehicle you want, and we will buy it and lease it back to you
- Your employer makes the payments from your pre-tax salary
- A variety of end of lease options to suit your needs.
NOVATED LEASE
Choose the vehicle you want with salary packaging, providing a range of benefits for businesses and employees.
Here's what you get
Eligibility criteria
- You are over 18 and a permanent Australian resident
- You have a Tax File Number
- You are an employee and earn a PAYG salary
- Your employer is an ABN holder and is registered for GST
- Your employer is willing to make the payments from your pre-tax salary.
Here's what it'll cost to get started
What will your rental payments be?
Rental payments vary depending on what you're looking to buy, so let a NAB business banker tailor a solution for you.
Choosing business finance
Frequently asked questions
What if I change jobs?
If your new employer agrees to take the payments from your pre-tax salary then the lease and the vehicle can move to your new job.
If your new employer does not agree, you will still get to take your car with you and are responsible for the remaining lease payments.
If your new employer agrees to take the payments from your pre-tax salary then the lease and the vehicle can move to your new job.
If your new employer does not agree, you will still get to take your car with you and are responsible for the remaining lease payments.
Can I make a deposit on the vehicle?
Unfortunately not. We need to pay for 100% of the vehicle’s cost and cannot accept a deposit or proceeds of a trade in.
Unfortunately not. We need to pay for 100% of the vehicle’s cost and cannot accept a deposit or proceeds of a trade in.
Are there any other fees?
Additional fees may apply if:
- You already own the vehicle or equipment.
- You are purchasing the vehicle or equipment from a person or business that:
- Does not have an ABN, or
- Is not registered for GST, or
- Does not generally sell this type of equipment as part of their normal course of business.
- You are purchasing specialised equipment.
- You want to make a change to the loan after it has been drawn down.
Full details can be found in our Fees & Charges guide.
Additional fees may apply if:
- You already own the vehicle or equipment.
- You are purchasing the vehicle or equipment from a person or business that:
- Does not have an ABN, or
- Is not registered for GST, or
- Does not generally sell this type of equipment as part of their normal course of business.
- You are purchasing specialised equipment.
- You want to make a change to the loan after it has been drawn down.
Full details can be found in our Fees & Charges guide.
What are my end of lease options?
At the end of the lease term:
- You must return the goods to NAB
- You can make an offer to purchase the goods
- You can make an offer to lease the goods for a further term
At the end of the lease term:
- You must return the goods to NAB
- You can make an offer to purchase the goods
- You can make an offer to lease the goods for a further term
How does a Novated Lease work?
- You and your employer sign a novated lease agreement with us and you get a car for your use.
- Your employer makes the lease repayments on the car and takes this amount from your pre-tax salary.
- You and your employer sign a novated lease agreement with us and you get a car for your use.
- Your employer makes the lease repayments on the car and takes this amount from your pre-tax salary.
What if I've already made the purchase?
If you’ve already paid for the vehicle or equipment, it’s not too late – we can buy it from you, reimburse you for the cost, and lease it back to you.
If you’ve already paid for the vehicle or equipment, it’s not too late – we can buy it from you, reimburse you for the cost, and lease it back to you.
What are my purchase options?
You have the freedom to choose new or used, from a dealer or a private seller (as long as they have an ABN and are registered for GST).
You have the freedom to choose new or used, from a dealer or a private seller (as long as they have an ABN and are registered for GST).
What are the tax implications?
We recommend you seek independent tax advice.
Generally with a Novated Lease, the lease, running costs of the vehicle and Fringe Benefits Tax (FBT) are deducted from your pre-tax earnings, and PAYG income tax is calculated on your reduced salary. This may effectively increase your net disposable income as you pay less income tax.
However this will be dependent on your financial and personal circumstances, including whether you will be making Employee Contributions from post-tax salary to offset FBT liability.
We recommend you seek independent tax advice.
Generally with a Novated Lease, the lease, running costs of the vehicle and Fringe Benefits Tax (FBT) are deducted from your pre-tax earnings, and PAYG income tax is calculated on your reduced salary. This may effectively increase your net disposable income as you pay less income tax.
However this will be dependent on your financial and personal circumstances, including whether you will be making Employee Contributions from post-tax salary to offset FBT liability.
Other options that may interest you
Vehicle and Equipment Loan
The easy way to purchase vehicles or equipment. Keep money in your business with no upfront deposit.
Finance Lease
Rent the vehicle or equipment your business needs and return it at the end of the lease.
Hire Purchase
Get the vehicle or equipment your business needs with no upfront deposit and own it at the end of the hire period.
Important information
1The Personal Property Securities Registration and Maintenance fee is payable for each asset you purchase and finance. Fees apply for standalone facilities and those drawn under a Master Asset Finance Agreement. Additional fees may apply, refer to our Business Banking Fees and Charges and Interest rates, fees and charges for more information.
Lending criteria and terms and conditions apply (available on application).
The tax comments provided in this document are of a general nature. NAB recommends that you seek independent tax advice in respect of the tax consequences arising from the use of any NAB Equipment Finance solution as they apply to your particular circumstances.
These products are issued by National Australia Bank Ltd ABN 12 004 044 937.
1The Personal Property Securities Registration and Maintenance fee is payable for each asset you purchase and finance. Fees apply for standalone facilities and those drawn under a Master Asset Finance Agreement. Additional fees may apply, refer to our Business Banking Fees and Charges and Interest rates, fees and charges for more information.
Lending criteria and terms and conditions apply (available on application).
The tax comments provided in this document are of a general nature. NAB recommends that you seek independent tax advice in respect of the tax consequences arising from the use of any NAB Equipment Finance solution as they apply to your particular circumstances.
These products are issued by National Australia Bank Ltd ABN 12 004 044 937.
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