The start of a new financial year is the perfect time to set fresh goals — for your finances, your lifestyle, and yes, even your car. If you’ve been thinking about upgrading your vehicle, doing it in FY25/26 could be the smartest move you make all year.
Why? Because there’s a way to upgrade your car and save thousands in tax at the same time: a novated lease. Whether you’re looking to cut costs, simplify your budget, or take advantage of current tax incentives, here’s how a novated lease can make your new car dream a reality.
Why the Start of the Financial Year is the Perfect Time
Timing matters when it comes to financial decisions. Starting a novated lease at the beginning of the financial year means you’ll:
Maximise your tax savings across the full 12 months
Spread your car and running costs evenly over the year
Start the year with a clear, predictable budget
By acting now, you’re setting yourself up for smarter cashflow management and potentially significant savings by the time FY25/26 ends.
What is a Novated Lease?
A novated lease is a three-way agreement between you, your employer, and a finance provider. Instead of paying for your car and running costs from your after-tax salary, these expenses are deducted from your pre-tax income.
This salary packaging arrangement helps you:
Reduce your taxable income
Save GST on your car purchase and running costs
Bundle all your car expenses into one convenient payment
It’s a tax-effective way to own and run your car while keeping more money in your pocket.
How does a novated lease work?
A novated lease is a convenient and cost-effective agreement between you, your employer, and a novated leasing provider, like Easi. You choose a car you love and pay for it directly from your wages through salary sacrificing. This employee benefit is very popular as your employer’s only involvement is paying across your money for your lease into your easi account.
The Tax Benefits of Novated Leasing
1. Pay Less Income Tax
Your car repayments and running costs come out of your pre-tax salary, which lowers your taxable income. That means less tax paid every pay cycle.
2. No GST on Vehicle Purchase
Normally, when you buy a car, GST is added to the purchase price. With a novated lease, your employer can claim that GST back — and pass the savings directly to you.
3. No GST on Running Costs
Fuel, servicing, tyres, insurance, and registration are all GST-free when included in your lease.
4. EV Fringe Benefits Tax (FBT) Exemption
Thinking about going electric? Eligible electric vehicles are currently exempt from FBT, making novated leasing even more cost-effective for EV drivers.
What’s Included in a Novated Lease?
A novated lease doesn’t just cover your car finance. With a fully maintained lease, you can bundle:
Vehicle finance repayments
Registration and insurance
Servicing, maintenance, tyres and repairs
Fuel or EV charging
Roadside assistance
This all-in-one approach simplifies your budget and ensures you’re never caught off guard by surprise bills.
Find out how much you can save with a novated lease
Why Upgrade Your Car in FY25/26?
Take Advantage of Current Tax Incentives
The Australian Government’s continued FBT exemption for eligible electric vehicles makes this financial year one of the best times to make the switch to an EV or hybrid.
Beat Inflation and Price Rises
Vehicle prices and running costs are increasing year on year. Locking in your lease now can help you secure today’s rates and avoid future price hikes.
Budget Smarter From Day One
By starting your lease in July, you’ll enjoy the benefits of tax savings and cashflow smoothing for the entire financial year.
Real-World Example
Let’s say Jack earns $85,000 a year and decides to upgrade to a new Tesla Model Y EV with a novated lease in July.
By salary packaging his car, he reduces his taxable income and avoids GST on the purchase price and running costs.
His car payments, fuel, servicing and insurance are all covered in one pre-tax deduction, meaning no big out-of-pocket bills.
Over the life of his lease, Jack saves thousands compared to buying the same car outright.
This is how novated leasing helps everyday Australians drive smarter and save.
Why Choose Easi for Your Novated Lease?
At Easi, we specialise in making novated leasing simple and cost-effective.
✔ Fleet Discounts – Access wholesale pricing on your new car
✔ Best Price Guarantee – We’ll beat any competitor’s quote
✔ Fully Maintained Options – Bundle all your costs into one predictable payment
✔ Australian-Based Support – Our team is here for you every step of the way
We take the hassle out of novated leasing so you can focus on enjoying your new car.
Steps to Upgrade Your Car This Financial Year
Check Your Eligibility
Talk to your employer or our team to confirm salary packaging options.Get a Free Quote
We’ll show you how much you can save with a novated lease.Choose Your Car
Pick the make and model you want — we’ll source it at a discounted fleet price.Start Saving
Enjoy tax benefits and a smarter budget from your very first pay cycle.
New Year, New Car, Smarter Savings
If you’re ready to upgrade your car in FY25/26, don’t miss out on the tax advantages and cost savings of novated leasing.
Drive the car you want. Pay less tax. Budget better.
Contact us today to find out how much you could save and get on the road sooner.
