Novated Leases

A Novated Lease delivers freedom of choice and financial advantages for both employers and employees.       

What is a Novated Lease? 

A Novated Lease is a three way agreement between an employee, employer, and FleetPlus Novated.
The Novation Agreement allows for a third party to meet your monthly lease payments between yourself and the finance company, in this instance FleetPlus Novated. The third party is your employer, whilst you are under their employ. However, should your employment situation change, the lease can be transferred to you or your new employer.
 

The Novated Lease exists between you and FleetPlus Novated via the Novation Agreement. This means your employer is responsible for the lease obligations whilst you are in their employ and the agreement ceases when your employment is terminated. The Finance Lease between you and the finance company will remain in place.

What types of Leases are available?  

FleetPlus Novated offers you the choice between a Novated Finance Lease or a Novated Operating Lease. The choice is typically made based on the driver’s intent at the expiration of the lease term.

• Novated Finance Lease
Under a Novated Finance Lease, the risks and or benefits of ownership associated with the vehicle at lease end remain with the employee. The employee is responsible for the residual payment and GST at the end of the lease. Residual values are set within the ATO Guidelines.

• Novated Operating Lease
Under a Novated Operating Lease, the residual value risk is the responsibility of FleetPlus Novated. The employee hands the vehicle back at the end of the lease in fair condition and within the agreed kilometres. FleetPlus Novated then dispose of the vehicle.

For more information, visit our FleetPlus Novated page or simply click here to access our Novated Lease Calculator.