A novated lease is a three-way agreement between you, your employer, and the finance/lease company. Because your employer is part of the contract (they handle the salary packaging), you can’t just “transfer” it like a normal loan.
Here’s how it typically works when you change jobs:
If your new employer offers novated leasing:
- You can usually re-novate (transfer) the lease to the new employer.
- The new employer must agree to take on the arrangement.
- Your leasing company will set this up with new documentation.
- If done properly, your payments and tax benefits continue largely unchanged.
If your new employer does NOT offer novated leasing:
- The lease usually reverts to you personally – finance lease.
- You’ll make payments from your after-tax income (losing the tax benefits).
- Some providers may offer alternatives, like restructuring the finance.
Other things to be aware of:
- There may be admin fees to transfer the lease.
- Timing matters—ideally, arrange this before your final paycheck with your current employer.
- You’ll likely need to provide new employer details and sign updated agreements.