What is novated leasing?
Under a novated lease, you can use part of your pre-tax income to finance the leasing of a vehicle. Essentially, it’s a three way agreement between you, your employer and the leasing company where your employer makes the lease repayments while you agree to provide a portion of your salary to cover the vehicle payments and running costs. You may also hear it referred to as salary sacrificing.
How does it work?
1. You choose your dream car and beCarWise sources a discounted quote from a dealership.
2. We create a forecast of all of your running costs over the life of the lease. This includes things like finance payments, insurance, fuel, servicing and tyres.
3. We then spread these costs evenly over the lease term, in-line with your salary payments. That way you know exactly what your deductions will be and what they’ll cover.
4. Once your finance is approved, your employer makes payments to the financier on your behalf from your pre-tax salary. That way, your income tax is reduced, saving you more over the long term. And because your employer is registered for GST, they claim the GST back from the ATO, passing those savings onto you.
2. We create a forecast of all of your running costs over the life of the lease. This includes things like finance payments, insurance, fuel, servicing and tyres.
3. We then spread these costs evenly over the lease term, in-line with your salary payments. That way you know exactly what your deductions will be and what they’ll cover.
4. Once your finance is approved, your employer makes payments to the financier on your behalf from your pre-tax salary. That way, your income tax is reduced, saving you more over the long term. And because your employer is registered for GST, they claim the GST back from the ATO, passing those savings onto you.
How many leases can I have?
As long as your salary can cover the payments, you can have as many leases as you like.
Is the car only for business use?
No. You can use a leased vehicle for business and/or personal use. You can also choose any make or model you like, as long as it’s a passenger vehicle. You can even finance a used car if that’s what you want to do, although some conditions do apply. Contact us to learn more.
What benefits does novated leasing offer me as an employee?
Two of the largest benefits associated with a novated lease are significant income tax reductions and GST savings for the life of the lease.Your running costs (fuel and maintenance) are also forecasted over the life of the lease, ensuring there are no nasty lump sum payments if and when any large repairs are required. You can also make significant savings on your insurance, along with a host of other benefits and discounts.
How do employers benefit from novated leasing?
Novated leasing offers a host of benefits for employers. It helps provide a cost effective transportation solution for all its employees.
Do I need to drive the car a set number of kilometres to save money?
Absolutely not. Whether you drive a little or a lot, novated leasing is one of the easiest ways to save on your next vehicle. The amount you’ll save will vary depending on how many kilometres you drive, the purchase price of your vehicle and your gross salary, but rest assured we’ll find you the deal that offers you the biggest benefits.
I’m thinking of changing my job – what will happen to my lease?
Terms and Conditions aside, a typical novated lease lasts for between one and five years. Both your finance payments and fuel cards are linked to your employer, so if you do change jobs, the leasing company and your employer need to know. You’ll also need to fill out some forms for us – you can find those here. If you do change jobs, you’ll have three options:
Continue with monthly payments: With this option, you’ll be responsible for paying all of your monthly payments, as well as the maintenance costs for your vehicle out of your own pocket.
Renovate your lease: If your new employer agrees, you can renovate your lease with them. You’ll have access to the same fantastic benefits as with your previous employer.
Payout your lease early: When you take on a novated lease, you agree to lease the vehicle for a set period of time. If you break the lease early, you’ll need to pay the remainder left on the lease, along with the residual value of the vehicle (GST included). Essentially, this option means you’re buying the vehicle outright.
If you’re made redundant, your novated lease becomes a normal finance lease and you’ll no longer have the tax benefits, salary deductions, fuel cards or maintenance program that come with a novated lease. In this situation, you can either sell the car and pay out the lease, or continue making payments to the finance provider until you get another job. Once you have another job, we’ll set up a new novation agreement with your employer, and the tax benefits will be all yours again. If you took out redundancy insurance at the beginning of your lease, your lease will be covered for up to six months of payments, plus reasonable running costs while you look for another job.
Continue with monthly payments: With this option, you’ll be responsible for paying all of your monthly payments, as well as the maintenance costs for your vehicle out of your own pocket.
Renovate your lease: If your new employer agrees, you can renovate your lease with them. You’ll have access to the same fantastic benefits as with your previous employer.
Payout your lease early: When you take on a novated lease, you agree to lease the vehicle for a set period of time. If you break the lease early, you’ll need to pay the remainder left on the lease, along with the residual value of the vehicle (GST included). Essentially, this option means you’re buying the vehicle outright.
If you’re made redundant, your novated lease becomes a normal finance lease and you’ll no longer have the tax benefits, salary deductions, fuel cards or maintenance program that come with a novated lease. In this situation, you can either sell the car and pay out the lease, or continue making payments to the finance provider until you get another job. Once you have another job, we’ll set up a new novation agreement with your employer, and the tax benefits will be all yours again. If you took out redundancy insurance at the beginning of your lease, your lease will be covered for up to six months of payments, plus reasonable running costs while you look for another job.
What is Fringe Benefits Tax?
When you purchase a vehicle under a novated lease, you do so using your pre-tax salary. This in turn reduces your taxable income. To ensure you don’t benefit above and beyond other taxpayers, the ATO offsets this reduction with a tax called Fringe Benefits Tax (FBT). This tax is calculated based on the purchase price of your vehicle and the annual kilometres driven. By paying for a portion of your annual running costs in a post-tax manner you can effectively offset any FBT liability accrued. Talk to us about your individual circumstances to learn more.
Could leasing an EV have an impact on my eligibility for government concessions or payments?
A novated lease on an electric vehicle may result in a Reportable Fringe Benefit Amount (RFBA) being included in your Income Statement or Payment Summary. The RFBA may affect your entitlement to certain government concessions and assistance such as HELP, childcare rebates and Family Tax Benefits etc.
We advise that you seek impartial financial guidance to assess how this may affect your individual circumstances. For more information, visit the Australian Government Website.
We advise that you seek impartial financial guidance to assess how this may affect your individual circumstances. For more information, visit the Australian Government Website.
What happens at the end of my lease?
A novated lease has a residual value (or balloon) payable at the end of the lease or at the point in which you elect to payout and own the vehicle outright. Generally, the longer the lease, the smaller the residual payment at the end of the lease. At the end of your lease term you have three options:
Pay the remainder: If you pay the full amount remaining on your lease, you then own the vehicle in full. You’re then responsible for all of your running costs including insurance, fuel and maintenance.
Sell the car: If you sell the car at the end of your lease, you must pay any difference between the sale price and the amount remaining on the lease. In the event you have sold your vehicle for more than what was owing on the lease, the sale profits are yours to keep!
Refinance: If you don’t want to pay the remainder or sell the car, you can refinance the vehicle by taking on a new novated lease.
Pay the remainder: If you pay the full amount remaining on your lease, you then own the vehicle in full. You’re then responsible for all of your running costs including insurance, fuel and maintenance.
Sell the car: If you sell the car at the end of your lease, you must pay any difference between the sale price and the amount remaining on the lease. In the event you have sold your vehicle for more than what was owing on the lease, the sale profits are yours to keep!
Refinance: If you don’t want to pay the remainder or sell the car, you can refinance the vehicle by taking on a new novated lease.
I want to change cars and I’m only halfway through my lease – what happens next?
You can’t ‘swap’ cars within the one lease, so if you want to change cars during the novated lease period, you must terminate the existing lease and enter into a new one. However, everyone’s situation is different, so if you have questions, get in touch and we’ll talk through your options.
What other things do I need to think about?
A novated lease is a great way to get a car you love at a price you can afford. However, to ensure you get the deal that best suits your circumstances, make sure you:
1. Choose the right vehicle for your needs
2. Pick the lease term that matches how long you plan to keep the car
3. Keep track of your account balance and via your driver report
4. Speak with an independent financial consultant Entering a novated lease is a serious financial commitment, so it’s important you understand the risks involved before deciding. We’ll walk you through the entire process, but recommend you seek independent financial advice to properly assess whether a novated lease is right for you.
Our experienced and dedicated team will work with you to ensure you get the best possible deal and are available to answer any questions you may have. Contact us to learn how a novated lease can work for you.
1. Choose the right vehicle for your needs
2. Pick the lease term that matches how long you plan to keep the car
3. Keep track of your account balance and via your driver report
4. Speak with an independent financial consultant Entering a novated lease is a serious financial commitment, so it’s important you understand the risks involved before deciding. We’ll walk you through the entire process, but recommend you seek independent financial advice to properly assess whether a novated lease is right for you.
Our experienced and dedicated team will work with you to ensure you get the best possible deal and are available to answer any questions you may have. Contact us to learn how a novated lease can work for you.
Can I claim my EV charging costs with a novated lease?
Yes! A novated lease includes all running costs so this includes all your electric charging costs too, regardless of where you charge your car. beCarWise will provide a convenient Chargefox Card with your EV plus we can reimburse your costs if you use another charging supplier. It’s easy!
During Your Lease FAQs
I’ve had a car accident – who should I call?
First thing’s first – if you’re in any danger, are obstructing traffic or need to lodge a police report, call for police assistance on 131 444. If it is an emergency ring 000. Once the immediate situation has been dealt with, you’ll need to lodge an insurance claim. Contact your insurer directly and they’ll lead you through the process.
Vero Insurance – 1800 222 043
Suncorp Insurance – 13 25 24
Allianz – 13 1000
Not sure who your insurer is? No worries, give us a call on 1300 734 500 and we’ll help you sort it out.
Vero Insurance – 1800 222 043
Suncorp Insurance – 13 25 24
Allianz – 13 1000
Not sure who your insurer is? No worries, give us a call on 1300 734 500 and we’ll help you sort it out.
Help! I need roadside assistance – who should I contact?
DigiCall Roadside Assistance is automatically included in your beCarWise Novated Lease package to give you greater peace of mind on our roads.
If you need assistance, just call us on 1300 734 500, choose Option #6, quote your rego number and someone will be sent out as soon as they can.
If you have your own external Roadside Assistance membership, please contact them directly.
If you need assistance, just call us on 1300 734 500, choose Option #6, quote your rego number and someone will be sent out as soon as they can.
If you have your own external Roadside Assistance membership, please contact them directly.
I’ve forgotten my portal login details – what are they?
Your login ID is your email address and the password is your vehicle’s registration number. When entering the password, please ensure you only use uppercase/capital letters and no spaces.
If you have locked yourself out of the portal, please email novated@becarwise.com.au.
If you have locked yourself out of the portal, please email novated@becarwise.com.au.
My fuel cards have been lost or stolen – what do I do?
If your fuel cards have been misplaced or stolen, please let us know as soon as possible and we will permanently cancel the cards and order replacements.
What are the PINs for my fuel cards?
The PIN for your Ampol card is set by you at the first use of the card. The PIN for your BP card is set as the month and year of your birth (MMYY). If you forget your PINs, please let us know and we can reset them for you.
My car needs service – what do I do?
With servicing and maintenance you have two options:
1. Go to a merchant that supports the Ampol AutoGuru program (formerly Caltex Starfleet). In this scenario, you book your vehicle in and advise the merchant that your vehicle is managed by Ampol. The service centre will contact Ampol for authority and send the bill to them – no need to swipe your Ampol card. You can find your nearest participating merchant by clicking the “Find a Service Centre” icon in our client portal.
2. You go to a merchant that does not support the Ampol Auto Guru program. In this case you pay for the work yourself and claim a reimbursement via the “Make a claim” button on our website. In order to process a reimbursement claim, you need to have sufficient funds available in your driver budgets and your employer needs to be up to date with their invoice payments to beCarWise.
1. Go to a merchant that supports the Ampol AutoGuru program (formerly Caltex Starfleet). In this scenario, you book your vehicle in and advise the merchant that your vehicle is managed by Ampol. The service centre will contact Ampol for authority and send the bill to them – no need to swipe your Ampol card. You can find your nearest participating merchant by clicking the “Find a Service Centre” icon in our client portal.
2. You go to a merchant that does not support the Ampol Auto Guru program. In this case you pay for the work yourself and claim a reimbursement via the “Make a claim” button on our website. In order to process a reimbursement claim, you need to have sufficient funds available in your driver budgets and your employer needs to be up to date with their invoice payments to beCarWise.
My car needs tyres – do I need to use a specific retailer?
No. As with servicing and maintenance, with tyres you have two options:
1. Go to a merchant that supports the Ampol AutoGuru program. In this scenario, you book your vehicle in and advise the merchant that your vehicle is managed by Ampol. The tyre centre will contact Ampol for authority and send the bill to them – no need to swipe your Ampol card. You can find your nearest participating merchant by clicking the 2. You go to a merchant that does not support the Ampol Auto Guru program. In this case you pay for the tyres yourself and claim a reimbursement via the “Make a claim” button on our website. In order to process a reimbursement claim, you need to have sufficient funds available in your driver budgets and your employer needs to be up to date with their invoice payments to beCarWise.
*Note* If you wish to take advantage of a retail tyre campaign (e.g. buy three tyres and get the fourth one free), these promotions are not compatible with the Ampol AutoGuru program so you would need to pay and claim a reimbursement (option 2 above).
1. Go to a merchant that supports the Ampol AutoGuru program. In this scenario, you book your vehicle in and advise the merchant that your vehicle is managed by Ampol. The tyre centre will contact Ampol for authority and send the bill to them – no need to swipe your Ampol card. You can find your nearest participating merchant by clicking the 2. You go to a merchant that does not support the Ampol Auto Guru program. In this case you pay for the tyres yourself and claim a reimbursement via the “Make a claim” button on our website. In order to process a reimbursement claim, you need to have sufficient funds available in your driver budgets and your employer needs to be up to date with their invoice payments to beCarWise.
*Note* If you wish to take advantage of a retail tyre campaign (e.g. buy three tyres and get the fourth one free), these promotions are not compatible with the Ampol AutoGuru program so you would need to pay and claim a reimbursement (option 2 above).
My vehicle’s insurance or registration is up for renewal – how is this done?
It is the driver’s responsibility to ensure the vehicle is registered and insured at all times. There are two options when it comes to renewing your vehicle’s insurance and registration:
1. Pay your insurance, registration/CTP renewal and lodge a reimbursement claim through our portal by clicking “Make a Claim” on our website. Reimbursements are usually processed within two business days (you will need to have sufficient surplus in your budgets and your employer will need to be up to date on their invoice payments to beCarWise in order to process the reimbursement).
2. Have beCarWise pay the renewals on your behalf. In this instance, please scan your documents (including payment details) to beCarWise and email to novated@becarwise.com.au and specifically request payment on your behalf. You can send photos if you wish, however they must be clear and in high resolution so we can read their contents. As with reimbursements, you need to have sufficient budgets and your employer needs to be up-to-date on their invoice payments to beCarWise in order for us to process payments on your behalf.
1. Pay your insurance, registration/CTP renewal and lodge a reimbursement claim through our portal by clicking “Make a Claim” on our website. Reimbursements are usually processed within two business days (you will need to have sufficient surplus in your budgets and your employer will need to be up to date on their invoice payments to beCarWise in order to process the reimbursement).
2. Have beCarWise pay the renewals on your behalf. In this instance, please scan your documents (including payment details) to beCarWise and email to novated@becarwise.com.au and specifically request payment on your behalf. You can send photos if you wish, however they must be clear and in high resolution so we can read their contents. As with reimbursements, you need to have sufficient budgets and your employer needs to be up-to-date on their invoice payments to beCarWise in order for us to process payments on your behalf.
My lease is ending soon – what are my options?
When your lease is ending, you have three options available:
1. Replace your current vehicle;
2. Refinance the residual on your current lease for a new term and continue with your current vehicle;
3. Pay the lease out.
Your leasing consultant can answer any questions you have and provide further information on your options and how beCarWise can continue to help save you money.
1. Replace your current vehicle;
2. Refinance the residual on your current lease for a new term and continue with your current vehicle;
3. Pay the lease out.
Your leasing consultant can answer any questions you have and provide further information on your options and how beCarWise can continue to help save you money.
I’m leaving my current employer – what happens to the lease?
If you’re leaving your employer then the novated portion of your lease gets terminated and reconciled. We will ask for a bit of information from yourself and from your employer in order to do this and we will also deactivate your fuel cards.
If your novated lease budgets are in surplus, these funds will be returned to your employer who will then apply the appropriate tax and the balance will go to you. If your novated lease budgets are in deficit, these funds will be deducted from your severance package, or billed directly to you.
Once the termination process is concluded, you will make the finance payments directly to the financier (we’ll provide a direct debit form to assist with this) and you will be responsible for the vehicle’s ongoing running costs directly.
If you go to a new employer that supports novated leasing, you can contact their existing provider and request a mid-lease transfer. If your new employer does not have an existing provider and/or is willing to bring beCarWise on as a novated leasing provider, we will just need the contact details of an appropriate person to discuss setting them up with beCarWise.
If you go to an employer which does not support novated leasing, you just continue to make the monthly payments to the financier and look after the vehicle running expenses directly.
If your novated lease budgets are in surplus, these funds will be returned to your employer who will then apply the appropriate tax and the balance will go to you. If your novated lease budgets are in deficit, these funds will be deducted from your severance package, or billed directly to you.
Once the termination process is concluded, you will make the finance payments directly to the financier (we’ll provide a direct debit form to assist with this) and you will be responsible for the vehicle’s ongoing running costs directly.
If you go to a new employer that supports novated leasing, you can contact their existing provider and request a mid-lease transfer. If your new employer does not have an existing provider and/or is willing to bring beCarWise on as a novated leasing provider, we will just need the contact details of an appropriate person to discuss setting them up with beCarWise.
If you go to an employer which does not support novated leasing, you just continue to make the monthly payments to the financier and look after the vehicle running expenses directly.
My budgets are over-spent – what happens?
We understand that sometimes there can be surprises and this can happen with cars too. If your novated lease budgets are temporarily over-spent by no more than $500, we will monitor the budgets and see if they return to surplus naturally.
If your novated lease budgets are continually trending into deficit then a lease modification quote is usually necessary in order to recoup overspent amounts and adjust your budgets to be more reflective of your actual running costs.
*Note* that if your budgets exceed the tolerance of $500, we will not be able to process reimbursement or payment requests until your budgets have returned to sufficient surplus.
If your novated lease budgets are continually trending into deficit then a lease modification quote is usually necessary in order to recoup overspent amounts and adjust your budgets to be more reflective of your actual running costs.
*Note* that if your budgets exceed the tolerance of $500, we will not be able to process reimbursement or payment requests until your budgets have returned to sufficient surplus.
Contact numbers you need to know
beCarWise – 1300 734 500
Vero Insurance claims – 1800 222 043
Suncorp Insurance claims – 13 25 24
beCarWise Roadside Assist – 1300 734 500 (option 4)
Vero Insurance claims – 1800 222 043
Suncorp Insurance claims – 13 25 24
beCarWise Roadside Assist – 1300 734 500 (option 4)
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