Novated leases

What can go in a novated lease?

A novated lease can bundle far more than the car payment. What you can include, and how it is treated, differs between providers, so use this as a checklist, not a promise.

General information, not tax advice. Rules change and your circumstances differ. Check the ATO sources linked here and speak to a registered tax agent or your employer's payroll team before you decide.

Quick facts (checked October 2026)

EV FBT exemption: the electric car discount continues in full to 31 March 2027. From 1 April 2027 the Government has announced a phased change. This is not yet law, and existing leases are expected to be unaffected. ATO summary.
Home charging shortcut rate: 5.47 cents per km for the 2026–27 FBT year (it was 4.20 cents per km for earlier years). It applies to battery EVs, not plug-in hybrids. ATO PCG 2024/2.
Home charger hardware: the ATO says a home charging station is not an exempt car expense. ATO.
Exempt car expenses for an eligible EV: registration, insurance, repairs and maintenance, and fuel including electricity.

How the tax side usually works

Pre-tax: lease payments and running costs are usually paid from your salary before income tax.
Post-tax and ECM: for cars that are not FBT-exempt, providers often use the Employee Contribution Method (ECM), where you pay some costs from after-tax pay to reduce the FBT. GST of one eleventh is generally payable on ECM contributions, unless the employer passes on its input tax credit.
Eligible EVs: while the exemption applies there is generally no FBT to offset, though the car's value still counts as a reportable fringe benefit, which can affect income tests.

The list

Scroll sideways on a phone. Every row is general information and availability and pricing vary by provider.

Items that may be packaged or included in a novated lease
Item	What it is	Usual treatment (pre-tax / FBT / EV)	GST	EV notes
Core lease costs
Vehicle finance (lease payments)	The monthly payment that covers the car's cost less the residual (balloon) value, plus interest.	Paid from pre-tax salary under the salary packaging arrangement. The residual is a set percentage of the car's value by lease term (ATO minimum residuals).	GST is built into the purchase price; the employer generally claims input tax credits, and some providers pass part of the benefit on to you. Varies.	For an eligible EV the car benefit is currently FBT-exempt for commitments made before 1 April 2027, so there is usually no FBT to offset.
Establishment, document and stamp duty fees	One-off finance set-up charges, documentation fees and state stamp duty or vehicle transfer charges.	Often financed into the lease or paid up front. Some providers charge; some do not.	Fees usually include GST. Stamp duty is a state tax and has no GST.	Several states have reduced stamp duty or rebates for EVs. Check your state's current rules.
Administration / management fee	A monthly or yearly fee for the provider to manage payments, claims and reporting.	Usually packaged pre-tax as part of the running-cost budget.	Generally includes GST.	Fee levels vary widely between providers; ask for the total over the lease term.
Fleet discount / purchase discount	A reduced purchase price negotiated through a provider's dealer or fleet buying power.	Reduces the amount financed. Not a payment, so no tax treatment of its own.	Reflected in the purchase price.	Not every provider can get a discount on every make, and EV discounts depend on supply.
Running costs
Registration (rego)	Annual state registration fee for the car.	Budgeted and paid pre-tax. For an eligible EV it is an exempt car expense under the ATO's electric cars exemption.	Government registration charges generally carry no GST. Confirm with your provider.	Some states charge EV-specific road-user fees or concessions. Check your state's rules.
Compulsory third party (CTP) insurance	Compulsory injury cover that is part of, or bought with, registration, depending on the state.	Budgeted pre-tax. Exempt car expense for an eligible EV.	Usually GST-inclusive; depends on state scheme.	Premiums and who sells it vary by state.
Comprehensive car insurance	Cover for damage to your car and others' property. Providers generally require it for the lease term. You may use the provider's policy or your own that meets the lease terms.	Budgeted pre-tax. Insurance is an exempt car expense for an eligible EV.	Premiums include GST; the GST treatment of the pre-tax payment depends on provider and ECM use.	EV premiums can be higher because of repair costs. Check battery and charging-cable cover.
Servicing and maintenance	Logbook services and repairs, usually budgeted monthly in a fully maintained lease.	Budgeted pre-tax. Repairs and maintenance are exempt car expenses for an eligible EV.	Includes GST.	EVs often have lower servicing costs, but budgets vary. Unspent funds may be returned at the end; check your provider's policy.
Tyres	Replacement tyres and sometimes wheel alignment and rotation.	Budgeted pre-tax as part of running costs.	Includes GST.	EVs can wear tyres faster due to weight and torque, so check the budget allowance.
Roadside assistance	Breakdown, flat battery and towing cover.	Usually pre-tax when provided by the provider or insurer.	Includes GST.	Ask whether it covers flat-battery recovery and towing to a charger or EV-capable workshop.
Cleaning and car washes	Washes, detailing and interior cleaning.	Some providers allow a budget; others do not. Treatment depends on the provider.	Includes GST.	Rarely EV-specific.
Windscreen and glass	Glass repair or replacement, sometimes as part of insurance or a separate allowance.	Usually covered through insurance or the maintenance budget.	Includes GST.	Windscreen replacement on an EV with driver-assist sensors can need recalibration; ask about it.
Tolls and e-tags	Toll road charges and e-tag fees.	Some providers allow a tolls budget or tag billing; many do not. Check how it is treated at your provider.	Tolls may or may not include GST depending on the operator.	Some states have toll or registration rules that differ for EVs.
Accident excess / replacement car	Your insurance excess if you make a claim, and a courtesy or hire car while yours is repaired.	The excess is often your own cost. Some providers offer excess-reduction or replacement-car options.	Includes GST where charged.	Ask about EV battery repair time and loan-car availability.
Fuel and charging
Electricity for home charging	The electricity used to charge at home.	Electricity is a car expense and exempt for an eligible EV. Providers commonly reimburse using the ATO shortcut rate of 5.47 cents per km for 2026–27 (4.20 cents applied for earlier years), or actual cost with records. Reimbursement via salary packaging is pre-tax.	GST treatment of the reimbursement varies; ask your provider.	The shortcut covers BEVs only, not plug-in hybrids. You cannot claim public charging separately under it unless you can accurately work out the percentage by charging type.
Public charging (cards, apps, network fees)	Fast and destination charging on networks, paid by card, app or reimbursement.	Treated as fuel for an eligible EV and exempt. Records are needed. Some providers issue a charge card; others reimburse.	Charging tariffs typically include GST.	Card compatibility across networks varies. Ask which networks work.
Home charger (wall box) and installation	Hardware and electrical work for a home charger.	The ATO says a home charging station is not a car expense and is not covered by the EV exemption. If provided, it may be a property fringe benefit; if reimbursed, an expense payment fringe benefit. Where it is rolled into a lease it must be separately identified. Some providers offer it anyway; others do not.	Varies. Includes GST on hardware and installation.	Always ask how a provider treats the charger and whether it adds FBT cost.
Charging cables and accessories	Portable charging cords, adaptors and other EV accessories.	ATO guidance groups charging cords with accessories, which have different treatment from running costs. If fitted when the lease starts they are usually financed with the car.	Includes GST.	Fitting accessories after a lease starts can affect treatment. Ask before buying.
Optional extras
Accessories	Items such as floor mats, tow bars, roof racks and window tint.	Normally financed with the car at the start. Added later, they may change the car's cost base and the lease terms.	Includes GST.	Under the draft EV FBT changes, fitting accessories after 1 April 2027 could create a new commitment. Not yet law.
GAP insurance	Covers the difference between insurance payout and what you owe if the car is written off.	Optional insurance, often capitalised into the lease. ATO rulings treat provider-packaged insurance as part of the lease costs.	Insurance has GST, with some exceptions.	A four-day pause applies before add-on insurance can be sold under the Finance Industry Code. Check value; add-on insurance often has exclusions.
Lease protection / loss-of-job insurance	Covers lease payments if you lose your job, are injured or fall ill.	Optional insurance; may be capitalised or deducted with other costs.	Insurance has GST, with some exceptions.	Check waiting periods, caps and exclusions in the PDS.
Tyre and rim insurance	Covers damage to tyres and wheels.	Optional add-on insurance.	Includes GST.	Ask for the policy limits and the total cost over the term.
Extended warranty / mechanical breakdown	Covers repairs outside the manufacturer's warranty.	Optional add-on; may be capitalised into the lease.	Includes GST.	EV manufacturers often give 7–8 years on batteries; check what any extended cover adds.
EV battery warranty and battery cover	The manufacturer's battery warranty (typically years and distance) and any extra cover.	The manufacturer's warranty comes with the car. Extras are optional add-ons.	Included in the car price or add-on price.	Check the warranty term against your lease term, and what happens at the end of the lease.
End of lease
Residual (balloon) payment and end-of-lease options	The final payment at the end of the lease, then you may pay it, refinance, trade in or return the car.	Paid after the lease term ends, normally from post-tax money or a refinance.	The residual is quoted GST-inclusive or exclusive depending on document; check both.	Refinancing or changing terms could create a new commitment under the draft EV FBT changes.

Questions to ask your provider

Not advice. This page is general information, not tax, financial, legal or credit advice. We do not recommend any provider. Availability, fees and treatment depend on your provider, employer and state. Confirm everything in writing and speak to a registered tax agent. Rules can change.

Sources

Last checked: 19 October 2026. Read next: Novated leases & FBT, Charging costs, Deals.