If you’re considering a novated lease as a smarter way to finance your next vehicle, one of the first questions you might have is: what exactly is included? Understanding what’s bundled into a novated lease is key to deciding whether it’s the right choice for you.
In this comprehensive guide, we’ll break down the inclusions, how they work, and the benefits you can expect. By the end, you’ll have a clear picture of how a novated lease simplifies vehicle ownership while saving you money.
What is a Novated Lease?
Before diving into the inclusions, let’s quickly recap what a novated lease is.
A novated lease is a three-way agreement between you, your employer, and a finance company. It allows you to finance a car using a portion of your pre-tax salary, which can reduce your taxable income and increase your take-home pay. Unlike a regular car loan, a novated lease bundles your car repayments with many of your vehicle’s running costs, all in one regular payment.
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.
What’s Typically Included in a Novated Lease?
A novated lease is designed to be a convenient, all-in-one solution for managing your car. Here are the core inclusions:
1. Vehicle Finance
At its core, a novated lease covers the cost of financing your car. You get to choose the make and model that suits your needs, and the lease payments are made directly from your salary before tax.
You can select a new or used vehicle (within certain age limits).
Your employer deducts the agreed lease amount from your pay and sends it to the finance provider.
2. Registration and Licensing
The lease package often includes registration costs for the duration of your agreement. This means you won’t need to budget separately for annual rego renewals – it’s all covered.
Keeps your car legally roadworthy without unexpected expenses.
Simplifies administration as registration reminders and payments are managed for you.
3. Comprehensive Insurance
Many novated leases bundle comprehensive car insurance, ensuring your vehicle is protected against accidents, theft, and damage.
Often includes agreed-value policies tailored to leased vehicles.
Premiums are spread over your lease term, avoiding a large annual lump sum.
4. Maintenance and Servicing
Routine servicing and unexpected repairs are covered under the lease. This helps you keep your car in peak condition without out-of-pocket surprises.
Covers scheduled logbook servicing.
Includes wear-and-tear items like brake pads and tyres.
Some providers offer access to a nationwide network of authorised repairers.
5. Fuel or EV Charging
Your novated lease can include a fuel card or electric vehicle (EV) charging plan, making it easy to manage your vehicle’s running costs.
Fuel costs are bundled into your pre-tax payments.
For EVs, charging station access or home charging installations may be included.
6. Roadside Assistance
Breakdowns happen – but with a novated lease, you’re covered. Roadside assistance gives you peace of mind that help is available 24/7.
Includes services like towing, flat tyre changes, and battery jump-starts.
Ensures minimal disruption if your car has a problem.
7. Tyres and Replacement Parts
Many novated leases cover tyre replacements and other consumables over the life of the lease. This removes the stress of budgeting for high-cost replacements.
Includes rotation, balancing, and replacement.
Keeps your vehicle safe and efficient.
Optional Extras
Some novated lease providers offer additional services that can be bundled into your agreement:
Windscreen repairs and replacement
Car washing and detailing
Toll tags and management of toll charges
Fringe Benefits Tax (FBT) reporting
Accident management support
These extras vary by provider, so it’s worth asking what’s available.
What’s Not Included in a Novated Lease?
While novated leases are comprehensive, there are a few costs typically excluded:
Fines and infringements (e.g., speeding tickets).
Personal accessories added after delivery.
Excess charges if you exceed your agreed kilometre limit.
Early termination fees if you end your lease early.
Understanding these exclusions will help you plan for any additional expenses.
Why Bundle These Costs?
The beauty of a novated lease lies in its simplicity and potential savings:
Tax Savings: Lease payments are deducted pre-tax, reducing your taxable income.
Budgeting Made Easy: All major vehicle costs are rolled into one regular payment.
No GST on Car Purchase Price: You can save thousands by avoiding GST on the vehicle and running costs.
What It Looks Like in Action
Let’s say you lease a $40,000 vehicle over a 5-year period. Here’s a simplified example of what your inclusions might look like:
Inclusion | Annual Cost (Estimated) |
Vehicle Finance | $8,000 |
Registration & Licensing | $1,200 |
Insurance | $1,400 |
Maintenance & Servicing | $1,000 |
Fuel (or EV Charging) | $2,500 |
Roadside Assistance | $150 |
Tyres | $500 |
Total Annual Package | $14,750 |
Your actual costs and tax savings will depend on your income, vehicle choice, and driving habits.
Benefits of Choosing a Novated Lease
Convenience: All costs managed in one simple payment.
Cost Savings: Tax benefits and fleet discounts.
Flexibility: Choose any make or model, including electric and hybrid vehicles.
Peace of Mind: Comprehensive inclusions minimise financial surprises.
Is a Novated Lease Right for You?
If you’re a salaried employee and use your car for personal or commuting purposes, a novated lease could be a cost-effective and stress-free way to own a vehicle.
Next Steps: Learn More About Novated Leasing
Ready to take advantage of tax savings and simplify your vehicle costs? At Easi, we make the process seamless with expert support every step of the way.
A novated lease is more than just car finance – it’s a fully packaged solution designed to make vehicle ownership easier, smarter, and more affordable. By understanding what’s included (and what isn’t), you can make an informed decision and maximise the benefits. Contact us today to get started!
