What is a novated lease?

A novated lease is a finance arrangement for employees. It allows you to “salary sacrifice” part of your pre-tax income to pay for your car and its running costs. This arrangement is attractive to many people because it can reduce taxable income. Here’s how it works:

  • 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.

To determine whether a novated lease is the best option for your circumstances, we suggest getting independent tax advice from an accountant or financial adviser.

Here's what you get

  • 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.

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

$0 Upfront deposit

Get the vehicle you need with no deposit upfront.

$0 Monthly fees

No additional monthly fees for maintaining your Novated Lease.

$550 Initial set up fee

Includes $522.50 Documentation and Settlement fee (inc GST) and $27.50 Personal Property Securities Register (PPSR) Registration & Maintenance fee (inc GST).1

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.


Choose your vehicle

Find the most suitable vehicle for your needs. If unsure you can still apply and we'll ask you later.


You can apply over the phone or in any NAB branch with a business banker.

Sign documents

We’ll prepare the documents for you and your employer to sign.

Collect the vehicle

Once all documents are received and your vehicle is ready to be collected, we’ll pay the supplier within one business day.

Chat to one of our friendly business bankers today

Frequently asked questions

What happens to my novated lease arrangement 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.

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.

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.

What are my end of lease options?

At the end of the lease term:

  1. You must return the goods to NAB
  2. You can make an offer to purchase the goods
  3. You can make an offer to lease the goods for a further term

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.

What are my purchase options?

You have the freedom to choose between a new or used vehicle, or from a dealer or any other suitable seller.

Other options that may interest you

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Vehicle and Equipment Loan

The easy way to purchase vehicles or equipment. Keep money in your business with no upfront deposit.

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Finance Lease

Rent the vehicle or equipment your business needs and return it at the end of the lease.

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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.

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