Novated Lease

Novated Lease

A Novated Lease is a lease agreement for individuals who use their vehicles for business or private use. This type of lease utilises the taxation benefits associated with salary packaging. The borrower’s employer makes the monthly lease repayments on behalf of the borrower and this in turn comes out of the borrower’s pre-tax income. This then forms part of the employee’s salary packaging arrangement. The inclusion of the Residual Value has the effect of reducing monthly lease payments and is compulsory. GST is payable on both monthly repayments and the residual payment.


  • Flexible terms ranging from 24 to 60 months.
  • Fixed monthly lease repayments.
  • Fixed interest rate.
  • Significant tax benefit from pre-tax repayments through salary package.
  • The GST component of the vehicle is paid by and claimed back by the finance company, reducing the amount required to be financed.

Lowe finance can offer a Novated Lease contract with no early payout penalties should you decide to end the contract before the end of the term. This has the potential of saving you thousands.


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