With Australia’s ongoing cost of living pressures, every cent counts — and one of the smartest, most underused financial hacks available right now is the novated lease. For employees looking to better manage cash flow without compromising on lifestyle, a novated lease can offer significant tax, GST, and budgeting benefits.
Let’s break down why it’s more than just a way to drive a new car — it’s a strategic move to take control of your financial wellbeing.
What Is a Novated Lease?
A novated lease is a three-way agreement between you, your employer, and the finance company — allowing you to lease a car using your pre-tax salary. It bundles vehicle costs (like finance, fuel/charging, insurance, and servicing) into one simple payment — before tax is even applied to your income.
Why It’s a Cost of Living Hack
1. Tax Savings
A big portion of your vehicle and running costs are paid pre-tax, reducing your taxable income — and potentially placing you in a lower tax bracket.
2. GST Savings
You don’t pay GST on the car’s purchase price or most running costs, as the leasing company claims the GST on your behalf. That’s an instant 10% (capped at the Input Tax Credit value $6,334 FY25) saving on major expenses.
3. Possible FBT Exemption on EVs
If you’re leasing an eligible electric vehicle (EV) under the luxury car tax threshold (like the BYD Sealion 7 ), it may be exempt from Fringe Benefits Tax (FBT) — meaning even more savings.
BYD: Extra 4% Fleet Discount
For those considering an EV, there’s more good news. Through our novated lease partners, you can access a 4% fleet discount on all new BYD ranges (excludes Dolphin Essential) — one of Australia’s most popular novated lease EV brands.
Combine that with GST and tax savings, and you’ve got one of the most cost-effective ways to drive an EV today.
Budgeting Made Simple
Because everything is bundled — finance, rego, fuel/charging, servicing and tyres — you’ll know exactly what’s coming out of your salary each pay cycle. It’s one less financial surprise, and a great way to get proactive about budgeting in a high-cost economy.
Every Dollar Counts
In this climate, finding ways to reduce taxable income, avoid GST, and lock in exclusive discounts isn’t just smart — it’s essential. A novated lease is more than a car finance tool — it’s a cost of living hack that helps you get ahead.
Thinking about making your next car a smart money move?
Talk to us at Fingo today about your novated lease options — electric, luxury, or anything in between.