Who Can Get a Novated Lease? Eligibility & Requirements

Thinking about getting a novated lease but not sure if you’re eligible? You’re not alone. While novated leasing offers attractive tax savings and simplified car ownership, it’s not available to everyone. This guide breaks down exactly who can access a novated lease in 2025, what the key requirements are, and how Fingo can help you get started with confidence.

 

What Is a Novated Lease? (Quick Recap)

A novated lease is a three-way agreement between:

• The employee (you)
  
• Your employer
  
• The finance provider 
  

Your employer deducts car lease payments (and often running costs like fuel/charging, maintenance, registration, tyres, and insurance) from your pre-tax income. This reduces your taxable income, boosts your take-home pay, and bundles car costs into a predictable monthly amount.

Because this arrangement depends on payroll deductions, not all workers are eligible. 

 

Novated Lease Eligibility Checklist

Requirement	Needed?	Details
PAYG Employment	Yes	You must be on employer payroll (not a sole trader)
Employer Support	Yes	Your employer must agree to salary packaging
Stable Income	Yes	To cover the periodic novated lease payments
Credit Check	Yes	You’ll need to pass finance approval

 

Who Can Get a Novated Lease?

If you meet the following conditions, you’re likely eligible:

You’re a PAYG employee

If you’re paid by an employer and taxed through the payroll system (not invoicing as a sole trader), you’re eligible.

Your employer allows salary packaging

They must be willing to participate in the lease agreement. If not, Fingo can guide them through the simple onboarding process.

You earn a consistent salary

Most providers look for stable income to support repayment terms of 1–5 years. The typical threshold is around $45,000/year.

You pass a credit check

A novated lease is still a financial contract, so your credit history will be assessed. Having stable employment improves your approval odds.

 

Who Can’t Get a Novated Lease?

You may not qualify if:

• Not full time or permanent part time employee
• You’re a sole trader or contractor paid via ABN
  
• You’re self-employed and don’t draw PAYG wages
  
• You’re receiving Centrelink only income
  
• Your employer doesn’t offer salary packaging
  

If you fall into these categories, Fingo can help you explore other vehicle finance options like chattel mortgages or personal loans for self-employed workers.

 

Employer Responsibilities

For a novated lease to be activated, the employer must:

• Approve the employee’s salary packaging request
  
• Partner with a provider like Fingo
  
• Manage pre-tax payroll deductions
  
• Include fringe benefits in reporting (if applicable)
  

Don’t worry, Fingo manages all compliance, documentation, and admin support, making it seamless for your HR or payroll team.

 

What Kind of Car Can You Lease?

Most novated leases allow:

• New or used cars (typically under 7–10 years old)
  
• Internal combustion engine, EVs and hybrids, which may be FBT-exempt in 2025
  
• Dealer or private purchases, depending on the provider
  

You can choose a vehicle that suits your lifestyle, whether it’s electric, practical, or performance-driven.