ABN Holder Popular
A person or business that holds an Australian Business Number (ABN), usually because they operate a business or enterprise in Australia.
EV
Glossary
A simple guide to the essential terms, concepts and terminology.
Search the glossary
A
AC Charging Popular
Electric vehicle charging that supplies alternating current (AC) to the vehicle, where the car’s onboard charger converts it to direct current for the battery.
EV
Agreed Value Popular
A car insurance valuation method where the insurer and policyholder agree on a set amount the vehicle will be insured for during the policy period.
Insurance
Annual Kilometres Popular
The estimated or actual number of kilometres a vehicle travels in a year, often used to budget fuel, charging, servicing and lease running costs.
Insurance
Annual Percentage Rate Popular
The annualised cost of borrowing expressed as a percentage, generally reflecting the interest charged on finance over a year.
Car Finance
Application Fee Popular
A fee a lender or finance provider may charge to process or assess a finance application.
Car Finance
APR Popular
Short for Annual Percentage Rate, an annualised percentage used to describe the interest cost of borrowing.
Car Finance
Asset Finance Popular
Existing asset finance page owns/complements intent
Car Finance
ATO Residual Value Popular
The minimum residual value commonly used for novated leases in Australia based on Australian Taxation Office guidance and the lease term.
NL Fundamentals
Auto Finance Popular
A broad term for finance used to purchase or use a motor vehicle, including car loans, leases and other vehicle finance products.
Car Finance
B
Balloon Payment on Car Loan Popular
A lump-sum amount scheduled at the end of a car loan, which can reduce the amount of the regular repayments during the loan term.
Car Finance
Base Value Popular
In FBT terms, the Base Value is the value of a vehicle used as the starting point for calculating the taxable value of a car fringe benefit under the Statutory Formula Method (SFM). It is generally based on the vehicle’s GST-inclusive purchase cost, including applicable dealer delivery and fitted accessories, but excluding costs such as registration and stamp duty. It is not necessarily the same as the drive-away price, amount financed, market value or residual value, and for eligible vehicles held for more than four years, the base value may be reduced to two-thirds of the original value.
Salary Packaging
Battery Capacity Popular
The amount of energy an EV battery can store, usually measured in kilowatt-hours (kWh).
EV
Battery Electric Vehicle Popular
A vehicle powered entirely by an electric motor and rechargeable battery, with no petrol or diesel engine.
EV
Battery Management System Popular
An electronic system that monitors and manages an EV battery, including charge level, temperature, voltage and battery protection.
EV
Battery Warranty Popular
A manufacturer warranty that covers an EV or hybrid vehicle battery for specified defects, years, kilometres or capacity conditions.
EV
BEV Popular
Short for Battery Electric Vehicle, a vehicle powered solely by electricity stored in a rechargeable battery.
EV
Bidirectional Charging Popular
EV charging technology that allows electricity to flow both into the vehicle battery and back out to a home, grid or external device.
EV
BMS Popular
Short for Battery Management System, the system that monitors and controls key battery functions in an electric vehicle.
EV
Borrowing Power Popular
An estimate of how much a lender may be willing to lend based on income, expenses, debts, credit profile and other financial commitments.
NL Fundamentals
Break Cost Popular
A fee or cost that may apply when a fixed-rate finance agreement is ended, changed or repaid earlier than agreed.
Car Finance
Business Use Percentage Popular
The proportion of a vehicle’s use that is for business purposes, often relevant to tax, expense and record-keeping calculations.
Salary Packaging
Business Vehicle Popular
A vehicle used primarily or partly for business activities.
Business
C
Car Allowance Popular
An amount paid by an employer to an employee to help cover the cost of using a vehicle for work-related purposes.
Salary Packaging
Car Allowance Tax Popular
The tax treatment that applies to a car allowance, which is generally treated as assessable income to the employee unless specific rules apply.
Salary Packaging
Car Allowance vs Company Car Popular
A comparison between receiving a cash vehicle allowance and using an employer-provided company car, including differences in tax, ownership and running costs.
Salary Packaging
Car Allowance vs Novated Lease Popular
A comparison between receiving a car allowance and salary packaging a vehicle through a novated lease, including tax, cash-flow and ownership considerations.
Salary Packaging
Car Appraisal
An assessment of a vehicle’s condition and estimated market or trade-in value.
Insurance
Car Subscription Popular
A vehicle access model where a recurring fee typically covers use of a car and may include services such as registration, maintenance or insurance.
Car Finance
Car Under Finance Popular
A vehicle that still has an outstanding loan, lease or security interest attached to it.
Insurance
Casual Employee Popular
An employee engaged without a firm advance commitment to ongoing work, usually with different entitlements from permanent employees.
NL Fundamentals
CCS Connector
A common EV fast-charging connector standard that combines AC charging pins with additional DC pins for rapid charging.
EV
CHAdeMO Popular
A DC fast-charging connector standard used by some electric vehicles, particularly certain older Japanese models.
EV
Charging Cost Popular
The cost of electricity used to charge an electric or plug-in hybrid vehicle.
EV
Charging Costs Popular
The ongoing electricity costs associated with charging an electric or plug-in hybrid vehicle.
Insurance
Charging Network Popular
A network of public or private EV charging stations operated by a provider or group of providers.
EV
Charging Rate Popular
The rate at which electrical energy is delivered to an EV battery, usually expressed in kilowatts (kW).
EV
Charging Speed Popular
How quickly an EV battery can receive energy from a charger, influenced by charger power, vehicle capability and battery conditions.
EV
Charging Time Popular
The time required to recharge an EV battery to a specified level under particular charging conditions.
EV
Chattel Mortgage Popular
A chattel mortgage is a business finance arrangement where you own the vehicle from the outset while the lender takes a mortgage over it as security until the loan is repaid.
Car Finance
Combined Range Popular
The estimated driving distance available when a vehicle can use more than one energy source, such as battery power plus petrol in a plug-in hybrid.
EV
Company Car Popular
A vehicle provided by an employer for an employee to use for work and, in some cases, private travel.
Business
Company Vehicle Popular
A vehicle owned, leased or otherwise provided by a business for employee or operational use.
Fleet
Comparison Rate Popular
A rate designed to help compare certain consumer loans by combining the interest rate with specified fees and charges into a single percentage.
Car Finance
Comprehensive Car Insurance Popular
Car insurance that generally covers accidental damage to your vehicle as well as damage you cause to other people’s property, subject to the policy terms.
Insurance
Compulsory Third Party Insurance Popular
Mandatory insurance that generally covers injury or death caused to other people in a motor vehicle accident, with rules varying by Australian state or territory.
Insurance
Credit Assessment Popular
A lender’s evaluation of a borrower’s financial position, credit history and ability to meet proposed repayments.
Car Finance
Credit Check Popular
A review of a person or business’s credit information as part of assessing an application for finance.
NL Fundamentals
Credit Enquiry Popular
A record created when a credit provider or authorised party accesses a person’s credit report in connection with a credit application or review.
Car Finance
Credit Report
A record containing information about a person or business’s credit history, accounts, enquiries and certain repayment information.
Car Finance
Credit Score Popular
A numerical indicator derived from credit information that is used to help assess credit risk.
NL Fundamentals
CTP Insurance Popular
Short for Compulsory Third Party insurance, a mandatory form of motor injury insurance in Australia with state and territory variations.
Insurance
D
DC Fast Charging Popular
High-powered direct-current charging that supplies electricity directly to an EV battery for faster charging than typical AC charging.
EV
Dealer Delivery Fee Popular
A fee charged by a vehicle dealer for preparing and delivering a car, which may be included in the drive-away price.
Insurance
Deed of Novation Popular
The agreement between an employee, employer and finance provider that transfers certain payment obligations under a vehicle lease to the employer while the employee remains responsible under the arrangement.
NL Fundamentals
Deposit Popular
An upfront amount paid toward a purchase or finance arrangement, reducing the amount that needs to be financed.
Car Finance
Depreciation Popular
The reduction in a vehicle’s value over time due to age, kilometres, condition, market demand and other factors.
Insurance
Destination Charging Popular
EV charging provided at places where vehicles are parked for longer periods, such as hotels, shopping centres or workplaces.
EV
Diesel Vehicle Popular
A vehicle powered by a diesel internal combustion engine.
EV
Drive-Away Price Popular
The total advertised price to put a vehicle on the road, generally including the vehicle price and applicable on-road costs.
Insurance
Driver Management Popular
The processes used by a fleet or business to manage drivers, including licences, compliance, safety, training and vehicle allocation.
Business
Driver Policy Popular
A business policy setting out rules and responsibilities for employees who drive company, fleet or work-related vehicles.
Business
Driver User Guide Popular
A guide that explains how drivers should use our fleet management portal, maintain and manage vehicles within a fleet or employer program.
Business
Driving Range Popular
The estimated distance a vehicle can travel before it needs refuelling or recharging.
Hybrid
E
Early Repayment Fee Popular
A fee that may apply when a loan or finance agreement is terminated earlier than the agreed term.
Car Finance
Early Termination Popular
Ending a lease or finance arrangement before the scheduled end date.
NL Fundamentals
Early Termination Fee Popular
A fee or cost that may apply when a lease or finance agreement is ended before the agreed end date.
NL Fundamentals
ECM Popular
Short for Employee Contribution Method, a method where an employee makes after-tax contributions toward a car benefit to reduce its FBT taxable value.
Salary Packaging
Electric Range Popular
The distance a vehicle can travel using only electricity stored in its battery.
EV
Electricity Tariff Popular
The price structure an electricity provider charges for power usage, which can affect the cost of charging an EV at home.
EV
Emissions Popular
Gases and pollutants released through vehicle operation or energy production, including greenhouse gas emissions such as carbon dioxide.
EV
Employee Benefit Popular
A non-wage benefit provided to an employee as part of their employment package, such as salary packaging or access to a novated lease.
Business
Employee Contribution Popular
An amount paid by an employee toward the cost of a fringe benefit, often from after-tax income.
Salary Packaging
Employee Contribution Method Popular
A method used in relation to vehicle fringe benefits where an employee makes after-tax contributions that can reduce the taxable value subject to FBT.
Salary Packaging
Employee Eligibility Popular
The criteria an employee must meet to access a workplace benefit such as a novated lease, including employer policy and employment status.
NL Fundamentals
Employer Approval Popular
The employer’s agreement to participate in and administer a novated lease, including payroll deductions and payment arrangements.
NL Fundamentals
Employer Contribution Popular
An amount paid by an employer toward an employee benefit, vehicle cost or salary packaging arrangement.
Salary Packaging
Employer Salary Packaging Popular
A workplace arrangement that allows eligible employees to receive part of their remuneration as approved benefits rather than only as cash salary.
Business
Encumbered Vehicle Popular
A vehicle that has a registered financial interest, security or other encumbrance attached to it, often because finance is still owing.
Insurance
End of Lease Popular
The point when the agreed lease term finishes and the remaining obligations or available options must be dealt with.
NL Fundamentals
End-of-Lease Options Popular
The choices available when a lease ends, which may include paying the residual, refinancing, extending, selling or replacing the vehicle depending on the arrangement.
NL Fundamentals
Energy Consumption Popular
The amount of energy a vehicle uses to travel a given distance, often expressed as kWh/100 km for EVs or L/100 km for fuel vehicles.
EV
Energy Efficiency Popular
How effectively a vehicle converts stored energy into distance travelled, with more efficient vehicles using less energy for the same travel.
EV
Equipment Finance Popular
Finance used to acquire business equipment, machinery or other productive assets.
Car Finance
Establishment Fee Popular
An upfront fee a lender or finance provider may charge to set up a loan, lease or finance agreement.
Car Finance
EV Popular
Short for Electric Vehicle, a vehicle that uses electric propulsion and is powered partly or entirely by electricity.
EV
EV Charging Popular
The process of replenishing an electric vehicle battery with electricity from a charging source.
EV
EV FBT Exemption Popular
An Australian FBT concession that can exempt eligible electric car benefits from fringe benefits tax when the legislative conditions are met.
Salary Packaging
EV Incentive Popular
A government or industry incentive designed to encourage electric vehicle adoption, such as rebates, tax concessions or registration benefits.
EV
EV Novated Lease Popular
A novated lease used to salary package an eligible electric vehicle and its approved running costs through an employer.
NL Fundamentals
EV Running Costs Popular
The ongoing costs of operating an electric vehicle, such as charging, registration, insurance, tyres, servicing and maintenance.
EV
EV Servicing Popular
Scheduled maintenance and inspection required to keep an electric vehicle operating safely and reliably.
EV
EV Tax Benefit Popular
A tax-related financial advantage that may apply to an eligible electric vehicle, such as an FBT exemption or other concession subject to current rules.
EV
Excess Funds Popular
Money remaining in a novated lease running-cost budget after actual expenses are lower than the amounts that were budgeted or collected.
NL Fundamentals
Extended Warranty Popular
Optional cover that extends certain vehicle warranty protections beyond the original manufacturer warranty period or conditions.
Insurance
F
Fair Wear and Tear Popular
The level of normal deterioration expected from reasonable vehicle use over time, excluding excessive damage or neglect.
Insurance
Fast Charging Popular
Higher-powered EV charging designed to add energy more quickly than standard AC charging, often using DC charging infrastructure.
EV
FBT Popular
Short for Fringe Benefits Tax, a tax generally paid by employers on certain non-cash benefits provided to employees or their associates.
Salary Packaging
FBT Calculator Popular
A tool used to estimate the fringe benefits tax impact or taxable value of an employee benefit based on the relevant inputs and method.
Salary Packaging
FBT Exemption Popular
"A rule that fully or partially exempts an otherwise taxable fringe benefit from FBT when the applicable legislative eligibility requirements are met. "
Salary Packaging
FBT on Novated Lease Popular
The fringe benefits tax treatment that may apply when a vehicle is provided through a novated lease, depending on vehicle type, use and available exemptions.
Salary Packaging
FBT Taxable Value Popular
The value of a fringe benefit calculated under FBT rules before applying the relevant tax rate, gross-up or employee contributions.
Salary Packaging
FBT-Exempt Vehicle Popular
A vehicle that meets the requirements for a specific FBT exemption under current Australian tax law.
Salary Packaging
FCEV Popular
Short for Fuel Cell Electric Vehicle, a vehicle that uses hydrogen in a fuel cell to generate electricity for an electric motor.
EV
FHEV Popular
Commonly used to mean Full Hybrid Electric Vehicle, a hybrid that can drive using the engine, electric motor or a combination without external plug-in charging.
EV
Finance Approval Popular
A lender’s decision to approve a finance application, usually subject to any stated conditions before settlement.
Car Finance
Finance Lease Popular
A vehicle lease used for business purposes where the business pays for the right to use the vehicle for an agreed term.
Car Finance
Finance Owing Popular
The outstanding amount that still needs to be repaid on a vehicle loan, lease or other finance agreement.
Insurance
Financed Amount Popular
The amount of money borrowed or funded under a finance agreement after accounting for any deposit, trade-in or other upfront contribution.
NL Fundamentals
Fixed Interest Rate Popular
An interest rate that remains unchanged for the agreed fixed period of a loan or finance contract.
Car Finance
Fleet Discount Popular
A reduced vehicle purchase price or commercial discount negotiated because of fleet buying arrangements, volume or supplier agreements.
Business
Fleet Finance Popular
Finance used to acquire, lease or manage multiple business vehicles.
Business
Fleet Fuel Card Popular
A fuel card used by a business or fleet to pay for fuel and related vehicle expenses while simplifying expense tracking and reporting.
Business
Fleet Management Popular
The coordinated management of business vehicles, including acquisition, maintenance, fuel, compliance, drivers, costs and replacement.
Business
Fleet Procurement Popular
The process of sourcing, negotiating and purchasing or leasing vehicles for a business fleet.
Business
Fleet Vehicle Popular
A vehicle owned, leased or managed as part of a business or organisation’s fleet.
Business
Fringe Benefits Tax Popular
An Australian tax generally paid by employers on certain benefits provided to employees or their associates in place of, or in addition to, salary or wages.
Salary Packaging
Fuel Card Popular
A payment card designed for fuel and sometimes other vehicle expenses, often with consolidated billing and transaction reporting.
Insurance
Fuel Cell Electric Vehicle Popular
An electric vehicle that generates electricity onboard using a hydrogen fuel cell to power an electric motor.
EV
Fuel Consumption Popular
The amount of fuel a vehicle uses over a set distance, commonly measured in litres per 100 kilometres.
Insurance
Fuel Costs Popular
The money spent on petrol, diesel or other fuel used to operate a vehicle.
Insurance
Fuel Economy Popular
A measure of how efficiently a vehicle uses fuel, often expressed as litres per 100 kilometres or kilometres per litre.
EV
Fuel Tax Credit Popular
A tax credit that eligible businesses may claim for fuel tax included in the price of fuel used in qualifying business activities, subject to ATO rules.
Salary Packaging
Fuel Type Popular
The energy source a vehicle uses, such as petrol, diesel, electricity, hydrogen or a combination in a hybrid vehicle.
Insurance
Full Hybrid Electric Vehicle Popular
A hybrid vehicle that can move using the engine, electric motor or both and recharges its battery internally rather than through an external plug.
EV
Fully Maintained Novated Lease Popular
A novated lease that includes budgeted running costs such as fuel or charging, registration, insurance, servicing and tyres, depending on the package.
NL Fundamentals
G
Gap Insurance Popular
Insurance designed to cover some or all of the difference between an insurer’s payout and the outstanding finance balance if a financed vehicle is written off, subject to policy terms.
Insurance
GFV Popular
Short for Guaranteed Future Value, a pre-agreed future vehicle value used in some finance products, subject to the contract’s conditions.
Car Finance
Gross Salary Popular
An employee’s salary before income tax and other deductions are taken out.
Salary Packaging
GST on Vehicle Purchase Popular
The GST component included in the purchase price of a vehicle where GST applies, which may be treated differently depending on the buyer and finance structure.
Salary Packaging
Guaranteed Future Value Popular
A future vehicle value specified in some finance contracts that may support end-of-term options if the agreement conditions are satisfied.
Car Finance
H
HEV Popular
Short for Hybrid Electric Vehicle, a vehicle that combines an internal combustion engine with one or more electric motors.
EV
Hire Purchase Popular
"A hire purchase is a finance arrangement where you make regular payments to use a vehicle and generally become its legal owner once all payments and any final amount are paid. "
Car Finance
Home Charging Popular
Charging an electric vehicle at home using a standard outlet, dedicated charger or wallbox.
EV
Hybrid Car Popular
A car that combines an internal combustion engine with an electric motor and battery to improve efficiency or performance.
EV
Hybrid Electric Vehicle Popular
A vehicle that combines an internal combustion engine and electric motor, with the battery generally recharged by the engine and regenerative braking.
EV
Hybrid Novated Lease Popular
A novated lease used to salary package a hybrid vehicle through an employer, with tax treatment depending on the vehicle and current rules.
NL Fundamentals
Hybrid Powertrain Popular
A vehicle propulsion system that combines an internal combustion engine with one or more electric motors and a battery.
EV
Hybrid Vehicle Popular
A vehicle that uses more than one propulsion source, typically an internal combustion engine and an electric motor.
EV
Hybrid vs PHEV Popular
A comparison between a conventional hybrid and a plug-in hybrid, with the key difference that a PHEV can be charged from an external electricity source.
EV
I
ICE Vehicle Popular
Short for Internal Combustion Engine vehicle, a vehicle powered primarily by petrol, diesel or another combustible fuel.
EV
Income Tax Popular
Tax charged on taxable income under Australian tax law, with individual rates generally increasing across income brackets.
Salary Packaging
Input Tax Credit Popular
A GST credit that an eligible GST-registered entity may claim for GST included in qualifying business purchases.
Salary Packaging
Insurance Excess Popular
The amount a policyholder may need to contribute toward an insurance claim before or alongside the insurer’s payment, depending on the policy.
Insurance
Insurance Premium Popular
The amount paid to an insurer for an insurance policy and its agreed period of cover.
Insurance
Interest Popular
The cost of borrowing money, usually calculated as a percentage of the outstanding balance over time.
Car Finance
Interest Rate Popular
The percentage rate used to calculate interest charged on borrowed money.
Car Finance
Internal Combustion Engine Popular
An engine that creates power by burning fuel such as petrol or diesel inside the engine.
EV
J
Job Loss Popular
The loss of employment during a finance or novated lease arrangement, which may affect payroll deductions, affordability and the options available for continuing or ending the arrangement.
NL Fundamentals
Joint Application Popular
A finance application made by two people together, with both applicants assessed and generally sharing responsibility for the finance agreement.
Car Finance
Joint Borrower Popular
A person who applies for finance with another borrower and is jointly responsible for meeting the repayment obligations under the agreement.
Car Finance
K
Kilometre Allowance Popular
An allowance or reimbursement based on kilometres travelled for work-related driving, subject to employer policy and tax treatment.
Insurance
Kilowatt-Hour Popular
A unit of energy equal to one kilowatt used for one hour, commonly used to measure EV battery capacity and electricity consumption.
EV
kWh Popular
Short for kilowatt-hour, a unit used to measure electrical energy and EV battery capacity.
EV
L
LCT Threshold Popular
The vehicle value threshold above which Luxury Car Tax may apply, with thresholds set and updated under Australian tax rules.
Salary Packaging
Lease Administration Popular
The ongoing management of lease documentation, payments, payroll deductions, changes and end-of-term processes.
Business
Lease Balance Popular
The amount still outstanding under a lease at a particular point in time.
NL Fundamentals
Lease Budget Popular
The planned amount allocated to lease payments and, where applicable, vehicle running costs over the lease term.
NL Fundamentals
Lease Costs Popular
The total costs associated with a lease, which may include finance charges, fees and, for some arrangements, budgeted running costs.
NL Fundamentals
Lease Fees Popular
Fees charged in connection with setting up, administering, changing or ending a lease.
NL Fundamentals
Lease Payout Popular
The amount required to settle and close a lease before or at the end of the agreed term.
NL Fundamentals
Lease Refinancing Popular
Replacing or restructuring an existing lease finance arrangement with new finance.
NL Fundamentals
Lease Repayment Popular
A regular payment made toward amounts due under a lease or lease finance arrangement.
NL Fundamentals
Lease Residual Popular
The agreed residual amount remaining at the end of a lease term.
NL Fundamentals
Lease Rollover Popular
Moving from an existing lease into a new or replacement lease arrangement, often when changing vehicles or extending finance.
NL Fundamentals
Lease Term Popular
The agreed length of time a lease runs, commonly expressed in months or years.
NL Fundamentals
Lease Transfer Popular
The process of moving a lease arrangement, obligations or administration to another party or employer where the contract permits it.
NL Fundamentals
Lease Variation Popular
A formal change to an existing lease agreement, such as an amendment to terms, budget or payment arrangements.
NL Fundamentals
Loan Balance Popular
The amount of principal and any applicable charges still outstanding on a loan at a particular time.
Car Finance
Loan Payout Popular
The amount required to fully repay and close a loan on a specified date.
Car Finance
Loan Repayment Popular
A scheduled payment made toward a loan, usually covering interest and principal.
Car Finance
Loan Settlement Popular
The point when an approved loan is formally completed and funds are advanced or applied to the purchase.
Car Finance
Loan Term Popular
The agreed period over which a loan is scheduled to be repaid.
Car Finance
Loan-to-Value Ratio Popular
A ratio comparing the amount borrowed with the value of the asset being financed, expressed as a percentage.
Car Finance
Logbook Method Popular
A method used to determine the business-use percentage of a vehicle based on a compliant logbook and related records.
Salary Packaging
Low-Emission Vehicle Popular
A vehicle designed to produce lower emissions than a comparable conventional vehicle, based on the relevant standard or definition.
EV
Luxury Car Tax Popular
An Australian tax that may apply to the GST-inclusive value of certain cars above the applicable Luxury Car Tax threshold.
Salary Packaging
LVR Popular
Short for Loan-to-Value Ratio, the percentage relationship between a loan amount and the value of the financed asset.
Car Finance
M
Maintenance Popular
The routine servicing, repairs and upkeep needed to keep a vehicle safe, reliable and in good operating condition.
Insurance
Manufacturer Warranty Popular
A warranty provided by the vehicle manufacturer covering specified defects or components for an agreed period or distance.
Insurance
Marginal Tax Rate Popular
The tax rate that applies to the next dollar of taxable income within a progressive income tax system.
Salary Packaging
Market Value Popular
The estimated amount a vehicle would reasonably sell for in the current market based on age, condition, kilometres and demand.
Insurance
MHEV Popular
Short for Mild Hybrid Electric Vehicle, a vehicle where a small electric system assists the engine but usually cannot drive the vehicle on electric power alone.
EV
Mild Hybrid Electric Vehicle Popular
A hybrid vehicle that uses a small electric motor and battery to assist the combustion engine but generally cannot drive solely on electric power.
EV
Monthly Lease Payment Popular
The regular monthly amount payable under a lease arrangement.
NL Fundamentals
Multi-Branded Fuel Card Popular
A fuel card accepted across multiple fuel brands or service-station networks.
Insurance
N
Net Salary Popular
The amount of salary an employee receives after tax and other deductions have been taken out.
Salary Packaging
New Car Warranty Popular
A manufacturer warranty provided with a new vehicle for a specified period, distance or set of conditions.
Insurance
Non-Maintained Novated Lease Popular
A novated lease where the finance payment is packaged but most or all vehicle running costs are managed separately by the employee.
NL Fundamentals
Novated Lease Popular
A three-party vehicle leasing arrangement between an employee, employer and finance provider where agreed lease payments are made through payroll while the employee uses the vehicle.
NL Fundamentals
Novated Lease Calculator Popular
A tool that estimates novated lease repayments, running costs and potential tax effects based on inputs such as salary, vehicle price and lease term.
NL Fundamentals
Novated Lease Eligibility Popular
The requirements that determine whether an employee and employer can participate in a novated lease arrangement.
NL Fundamentals
Novated Lease FBT Popular
The fringe benefits tax treatment of a vehicle provided through a novated lease, including possible exemptions or employee contributions.
NL Fundamentals
Novated Lease for Business Owners Popular
A novated lease considered by a business owner who is also an employee of an eligible employing entity, subject to employer participation and tax rules.
NL Fundamentals
Novated Lease for Not-for-Profit Employees Popular
A novated lease used by an eligible employee of a not-for-profit employer, with tax outcomes depending on the employer’s status and applicable concessions.
NL Fundamentals
Novated Lease for Self-Employed Popular
A commonly searched concept referring to novated leasing for self-employed people; eligibility depends on having a participating employer relationship rather than simply being self-employed.
NL Fundamentals
Novated Lease for Sole Trader Popular
A commonly searched term for novated leasing by sole traders; a standard novated lease generally requires an employer-employee relationship, so eligibility depends on the person’s structure.
NL Fundamentals
Novated Lease GST Popular
The GST treatment that applies to vehicle purchase and eligible running costs within a novated lease, subject to the structure and Australian tax rules.
NL Fundamentals
Novated Lease Management Popular
A novated leasing concept relating to management, covering how it affects the vehicle lease, payroll arrangement, costs or tax treatment.
Business
Novated Lease Package Popular
The combined novated lease arrangement that may include finance payments and budgeted vehicle expenses such as fuel, charging, servicing, tyres, registration and insurance.
NL Fundamentals
Novated Lease Provider Popular
A company that arranges or administers novated leases, including finance coordination, payroll deductions and vehicle running-cost management.
NL Fundamentals
Novated Lease Requirements Popular
The employer, employee, vehicle, documentation and finance conditions that must be met to establish a novated lease.
NL Fundamentals
Novated Lease Residual Value Calculator Popular
A tool that estimates the end-of-term residual value for a novated lease based on the applicable lease term and standard assumptions or guidelines.
NL Fundamentals
Novated Lease Running Costs Popular
Vehicle expenses that can be budgeted within a maintained novated lease, such as fuel or charging, servicing, tyres, registration and insurance.
NL Fundamentals
Novated Lease Small Business Popular
A novated lease offered through a small business employer to eligible employees, including owner-employees where the legal and employment structure permits.
NL Fundamentals
Novated Lease Tax Benefits Popular
Potential tax-related advantages of a novated lease, which can arise from salary packaging, GST treatment and eligible FBT concessions depending on individual circumstances.
NL Fundamentals
Novated Lease Without Employer Popular
A phrase describing attempts to obtain a novated lease without employer participation; a standard novated lease generally requires an employer to enter the novation arrangement.
NL Fundamentals
Novated Leasing Popular
The use of a novated lease structure to salary package a vehicle through an employer.
NL Fundamentals
Novation Popular
The legal process of substituting one party or set of obligations in a contract with another by agreement of the relevant parties.
NL Fundamentals
O
Odometer Popular
A vehicle instrument that records the total distance the vehicle has travelled.
Insurance
On-Road Costs Popular
Costs required to put a vehicle legally on the road, such as registration, compulsory insurance, stamp duty and dealer-related charges where applicable.
Insurance
Ongoing Fee Popular
A recurring fee charged for maintaining, administering or servicing a finance or lease arrangement.
Car Finance
Operating Cost Method Popular
An FBT method that calculates the taxable value of a car fringe benefit based on the vehicle’s operating costs against business and its private-use percentage.
Salary Packaging
Operating Lease Popular
An operating lease is an arrangement where you pay to use a vehicle for a set period without owning it, with the vehicle generally returned to the lessor at the end of the lease.
Car Finance
P
PAYG Withholding Popular
The Australian system where employers withhold amounts from employee payments and remit them toward the employee’s income tax obligations.
Salary Packaging
Payout Figure Popular
The amount required to fully settle a loan/finance or lease agreement on a particular date.
NL Fundamentals
Payroll Deduction Popular
An amount withheld from an employee’s salary or wages through payroll, such as a novated lease payment or salary packaging contribution.
Salary Packaging
Payroll Integration Popular
The connection between a salary packaging or novated lease program and the employer’s payroll system so deductions and payments are processed correctly.
Business
Payroll Tax Popular
A state or territory tax generally imposed on employers when taxable wages exceed the applicable threshold, subject to local rules and exemptions.
Salary Packaging
Permanent Employee Popular
An employee engaged on an ongoing basis, generally as full-time or part-time, with standard employment entitlements.
NL Fundamentals
Personal Car Loan Popular
A car loan taken out by an individual to finance a vehicle for personal use.
Car Finance
Personal Property Securities Register Popular
Australia’s national online register of security interests in personal property, commonly checked when buying a used vehicle.
Insurance
PHEV Popular
Short for Plug-In Hybrid Electric Vehicle, a vehicle with both an internal combustion engine and a rechargeable battery that can be charged from an external power source.
EV
PHEV FBT Treatment
The fringe benefits tax treatment that applies to plug-in hybrid vehicles, which depends on current legislation, eligibility dates and transitional rules.
EV, Hybrid & Vehicle Technology
PHEV Novated Lease Popular
A novated lease used to salary package a plug-in hybrid vehicle, with FBT treatment depending on current eligibility rules.
NL Fundamentals
Plug-In Hybrid Electric Vehicle Popular
A hybrid vehicle with an internal combustion engine and battery that can be recharged from an external power source and driven for a distance on electricity alone.
EV
Post-Tax Contribution Popular
An amount paid from an employee’s after-tax income toward a benefit or expense, often used in salary packaging and FBT arrangements.
Salary Packaging
PPSR Popular
Short for Personal Property Securities Register, the Australian register used to check whether a vehicle or other personal property has a registered security interest.
Insurance
Pre-Approval Popular
A preliminary indication that a lender may be willing to provide finance up to certain terms, subject to final checks and conditions.
Car Finance
Pre-Tax Contribution Popular
An amount directed from an employee’s salary before income tax is calculated, where permitted under a salary packaging arrangement.
Salary Packaging
Pre-Tax Salary Popular
Salary before income tax and other deductions are taken out.
Salary Packaging
Principal Popular
The amount of money borrowed under a loan, excluding interest and fees.
Car Finance
Private Sale Popular
A vehicle sale directly between a private seller and buyer rather than through a licensed dealer.
Insurance
Private Use Popular
Vehicle use for personal purposes rather than business or work-related travel.
Salary Packaging
Public Charging Popular
EV charging provided at publicly accessible charging stations such as shopping centres, car parks, service stations or dedicated charging hubs.
EV
Purchase Price Popular
The agreed amount paid to buy a vehicle before or including applicable fees and on-road costs, depending on how the price is stated.
Insurance
Q
Quote Comparison Popular
The process of comparing vehicle, finance or novated lease quotes based on factors such as vehicle price, fees, repayments, running costs and inclusions.
NL Fundamentals
Quote Expiry Popular
The date after which the pricing, rates, vehicle availability or other assumptions in a quote may no longer be valid and may need to be updated.
NL Fundamentals
Quoted Vehicle Price Popular
The vehicle purchase price shown in a quote before or alongside any applicable finance, lease, running-cost or salary-packaging calculations.
NL Fundamentals
R
Range Extender Popular
A system that uses an auxiliary energy source, often a small engine, to generate electricity and extend the driving range of an electric vehicle.
EV
Range Extender vs Hybrid Popular
A comparison between a range-extended EV, where the engine primarily generates electricity, and a hybrid, where the engine can directly help drive the wheels.
EV
Range Extender vs PHEV Popular
A comparison between a range-extended EV and a plug-in hybrid, focusing on how the combustion engine is used and how the battery supports propulsion.
EV
Range-Extended Electric Vehicle Popular
An electric-drive vehicle with a battery plus an onboard range extender, usually an engine that generates electricity when battery charge is low.
EV
Re-Novation Popular
The process of entering a new novation arrangement for an existing lease, commonly when an employee changes employer.
NL Fundamentals
REEV Popular
Short for Range-Extended Electric Vehicle, an electric-drive vehicle that uses an onboard generator to extend driving range.
EV
Refinancing Popular
Replacing an existing loan or finance agreement with a new one, often to change the rate, term or repayment structure.
Car Finance
Regenerative Braking Popular
A system that recovers energy while the vehicle slows down and converts it into electricity to recharge the battery.
EV
Registration Popular
The legal process of registering a vehicle with the relevant state or territory road authority so it can be driven on public roads.
Insurance
Registration Fee Popular
A fee charged by the relevant road authority to register or renew registration for a vehicle.
Insurance
Remuneration Benefit Popular
A non-cash or additional benefit provided as part of an employee’s total remuneration package.
Business
Remuneration Package Popular
The total value of an employee’s compensation, including salary and any additional benefits or salary packaged items.
Salary Packaging
Rent-to-Own Popular
An arrangement where a customer rents an asset with the possibility or intention of acquiring ownership after meeting specified payment conditions.
Car Finance
Reportable Fringe Benefits Popular
Certain fringe benefits that must be reported on an employee’s income statement when the reportable threshold and rules are met, even though the employee does not directly pay FBT.
Salary Packaging
Reportable Fringe Benefits Amount Popular
The grossed-up amount of certain fringe benefits reported for an employee when reporting requirements are met.
Salary Packaging
Resale Value Popular
The estimated amount a vehicle could be sold for at a future point in time.
Insurance
Residual Popular
A lump-sum amount due at the end of a lease agreement after. For novated lease its a mandatory and the amount is set by the ATO according to the lease term.
NL Fundamentals
Residual Payment Popular
The amount payable at the end of a lease to satisfy the agreed residual obligation.
NL Fundamentals
Residual Value Popular
The agreed or estimated value of a vehicle remaining at the end of a lease term.
NL Fundamentals
Responsible Lending Popular
The legal and compliance framework requiring certain credit providers to assess whether regulated consumer credit is suitable for the borrower.
Car Finance
RFBA Popular
Short for Reportable Fringe Benefits Amount, the grossed-up value of certain reportable fringe benefits shown for an employee.
Salary Packaging
Roadside Assistance Popular
A service that provides help when a vehicle breaks down or cannot continue driving, such as towing, battery support or tyre assistance.
Insurance
Running Costs Popular
The ongoing expenses of operating a vehicle, such as fuel or charging, registration, insurance, servicing, maintenance and tyres.
Insurance
S
Salary Packaging Popular
An arrangement where an employee agrees to receive part of their remuneration as approved benefits instead of only as cash salary.
Salary Packaging
Salary Sacrifice Popular
An arrangement where an employee gives up part of their future cash salary in exchange for an agreed benefit provided by the employer.
Salary Packaging
Salary Sacrifice Novated Lease Calculator Popular
A calculator that estimates the financial effect of paying for a novated lease through salary sacrifice and payroll deductions.
NL Fundamentals
Scheduled Servicing Popular
Vehicle maintenance performed at manufacturer-recommended time or kilometre intervals.
Insurance
Secured Car Loan Popular
A car loan where the vehicle or another asset is used as security for the lender.
Car Finance
Self-Employed Popular
A person who works for themselves rather than as an employee, such as a sole trader or business owner.
Business
Servicing Popular
Routine inspection and maintenance carried out to keep a vehicle operating safely and in line with manufacturer recommendations.
Insurance
Small Business Popular
A business operating on a smaller scale, with definitions varying depending on the legal, tax or reporting context.
Business
SOC Popular
Short for State of Charge, the percentage of usable energy currently stored in an EV battery.
EV
SOH Popular
Short for State of Health, an estimate of an EV battery’s condition and remaining performance relative to when it was new.
EV
Sole Trader Popular
An individual who owns and operates a business in their own name and is personally responsible for its debts and obligations.
Business
Stamp Duty Popular
A state or territory tax that may apply to vehicle purchases or transfers, with rates and rules varying by location.
Insurance
State of Charge Popular
The amount of usable energy currently stored in an EV battery, usually shown as a percentage.
EV
State of Health Popular
A measure of an EV battery’s condition and capacity relative to its original performance when new.
EV
Statutory Formula Method Popular
An FBT method that calculates the taxable value of a car fringe benefit using the vehicle’s base value, a statutory percentage and the days the benefit is available.
Tax & FBT
Surplus Funds Popular
Money remaining in a novated lease expense account or budget after actual vehicle costs are lower than the amount collected.
NL Fundamentals
T
Tailpipe Emissions Popular
Pollutants and greenhouse gases emitted directly from a vehicle’s exhaust while it is operating.
EV
Take-Home Pay Popular
The amount of income an employee receives after tax and other payroll deductions.
Salary Packaging
Tax Deductibility Popular
Whether an expense is eligible to be claimed as a tax deduction under the applicable tax rules.
Salary Packaging
Tax Deduction Popular
An eligible expense or amount that can reduce taxable income when claimed correctly under tax law.
Salary Packaging
Tax Return Popular
The form or process used to report income, deductions and other tax information to the tax authority for an income year.
Salary Packaging
Tax Savings Popular
A reduction in tax payable that can result from eligible deductions, concessions, exemptions or salary packaging arrangements.
Salary Packaging
Taxable Car Allowance Popular
A car allowance that is treated as assessable income and therefore included in the employee’s taxable income.
Salary Packaging
Taxable Income Popular
The amount of income on which income tax is calculated after applying allowable deductions and relevant tax rules.
Salary Packaging
Taxable Value Popular
The value assigned to a fringe benefit under FBT rules before calculating the employer’s FBT liability.
Salary Packaging
TCO Popular
Short for Total Cost of Ownership, the full cost of owning and operating a vehicle over time rather than only its purchase price.
Insurance
Third Party Property Insurance Popular
Car insurance that generally covers damage you cause to other people’s property but does not usually cover damage to your own vehicle.
Insurance
Total Cost of Ownership Popular
The total cost of owning and operating a vehicle over a period, including purchase or finance, depreciation, fuel or charging, insurance, maintenance, registration and other expenses.
Insurance
Trade-In Popular
A vehicle given to a dealer as part of the purchase of another vehicle, with its value credited toward the transaction.
Insurance
Trade-In Value Popular
The amount a dealer is willing to credit for a vehicle being traded toward another purchase.
Insurance
Transfer Fee Popular
A fee that may apply when ownership, registration, finance or another contractual interest is transferred.
Insurance
Truck Finance Popular
Finance used to purchase or fund a truck for business or commercial use.
Car Finance
Type 2 Connector Popular
A widely used EV charging connector standard for AC charging in Australia and many other markets.
EV
U
Unsecured Car Loan Popular
A car loan that does not use the vehicle or another asset as security for the lender.
Car Finance
Upfront Costs Popular
Costs payable at or before the start of a purchase, lease or finance arrangement, such as deposits, fees or on-road charges.
NL Fundamentals
V
V2G Popular
Short for Vehicle-to-Grid, technology that allows a compatible EV to send stored electricity back to the electricity grid.
EV
V2H Popular
Short for Vehicle-to-Home, technology that allows a compatible EV battery to supply electricity to a home.
EV
V2L Popular
Short for Vehicle-to-Load, a feature that allows a compatible EV to power external electrical devices or appliances from its battery.
EV
Variable Interest Rate Popular
An interest rate that can change over the life of a loan or finance agreement in line with the product terms or market conditions.
Car Finance
Vehicle Acquisition Popular
The process of sourcing and obtaining vehicles for an individual, business or fleet through purchase or lease.
Business
Vehicle Allowance Popular
A payment or allowance provided to help cover the cost of using a vehicle for work-related purposes.
Salary Packaging
Vehicle Condition Popular
The physical and mechanical state of a vehicle, including wear, damage, service history and overall presentation.
Insurance
Vehicle Depreciation
The reduction in a vehicle’s value over time due to age, kilometres, condition and market factors.
Insurance
Vehicle Disposal Popular
The process of selling, trading, returning or otherwise removing a vehicle from ownership or a fleet.
Business
Vehicle Expense Popular
A cost associated with owning, leasing or operating a vehicle.
Business
Vehicle Expense Reimbursement Popular
A payment made to repay an employee or driver for eligible vehicle expenses they paid personally.
Business
Vehicle Procurement Popular
The process of sourcing, negotiating and acquiring vehicles for an individual, business or fleet.
Business
Vehicle-to-Grid Popular
Technology that allows a compatible electric vehicle to export stored electricity from its battery back to the power grid.
EV
Vehicle-to-Home Popular
Technology that allows a compatible electric vehicle to supply stored battery electricity to a home.
EV
Vehicle-to-Load Popular
A feature that allows a compatible electric vehicle battery to power external electrical appliances or equipment.
EV
W
Wallbox Charger
A dedicated wall-mounted EV charger installed at a home or workplace, usually providing faster and safer charging than a standard power outlet.
EV
Wear and Tear
Normal deterioration that occurs as a vehicle is used and ages.
Insurance
Work-Related Car Expenses
Vehicle expenses incurred in earning assessable income, which may be deductible when the relevant tax rules and record-keeping requirements are met.
Salary Packaging
X
xEV (Electrified Vehicle) Popular
An umbrella term for vehicles that use electric propulsion either partly or entirely, including hybrids, plug-in hybrids and battery electric vehicles.
EV
Y
Year Model Popular
The model year assigned to a vehicle, which can differ from its build or registration year and may affect specifications, features, market value and finance decisions.
Insurance
Year-to-Date Income Popular
The total income earned from the start of the current financial or calendar year up to a specific date, often shown on payroll or income records.
Salary Packaging
Young Driver Excess Popular
An additional insurance excess that may apply when a vehicle is driven by a person below an insurer's specified age threshold, depending on the policy terms.
Insurance
Z
Zero-Emission Vehicle
A vehicle that produces no tailpipe emissions while driving, such as a battery electric or hydrogen fuel cell vehicle.
EV
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