For many Australian employees, finding smarter, tax-effective ways to afford a new car is increasingly important. Rising costs, interest rates, and a growing interest in electric vehicles (EVs) have made flexible car-financing solutions more valuable than ever. That’s where novated lease options come in.
A novated lease lets employees pay for their vehicle and running costs from their pre-tax salary — offering savings, convenience, and the chance to drive the car you want without the stress of ownership. Leaselab, one of Australia’s trusted novated leasing providers, offers flexible, transparent plans that suit a wide range of employees — including those looking to switch to electric or hybrid vehicles.
In this guide, we’ll explore how Leaselab’s novated lease options work, what makes them unique, and how you can take advantage of the savings and flexibility they provide.
Understanding Your Novated Lease Options
What Is a Novated Lease and How Does It Work?
A novated lease is a three-way agreement between you, your employer, and a finance provider. Your employer deducts lease payments from your pre-tax salary and pays the leasing company directly. This means you can effectively “salary package” your car — including running costs like registration, insurance, servicing, tires, and even electricity for EVs.
This salary-sacrifice setup reduces your taxable income, helping you save thousands each year while keeping all your car expenses bundled into one simple payment. With Leaselab’s novated lease options, you can choose from new, used, or even your existing car to create a plan that suits your lifestyle and budget.
Key Benefits for Employees – Tax Savings, Bundled Running Costs, Flexibility
Choosing a novated lease option offers several key advantages for employees:
- Tax savings – Lease repayments and running costs are deducted from your pre-tax income, lowering your overall taxable income.
- Bundled costs – Combine car payments, fuel or electricity, servicing, and insurance into one regular payment.
- Convenience – Leaselab handles all administration, payments, and support, leaving you free to enjoy your drive.
- Flexibility – At the end of your lease, you can pay the residual and own the car, trade it in for a new one, or start a new lease.
Leaselab’s mission is to make car leasing “simple, transparent, and rewarding” — ensuring employees understand their options and maximise every dollar of benefit.
What Makes Leaselab’s Leasing Plans Different?
Leaselab stands out for its flexible, employee-focused leasing solutions. Their platform allows you to:
- Compare novated lease options across multiple lenders.
- Access quotes for petrol, hybrid, and electric vehicles.
- Get expert guidance on FBT (Fringe Benefits Tax) exemptions for eligible EVs.
- Enjoy transparent pricing and support from a dedicated leasing consultant.
With Leaselab, employees gain the confidence to choose the right car and structure a lease that balances cost, convenience, and lifestyle.
Choosing the Right Novated Lease Plan for You
New Car vs Used Vehicle vs Your Existing Car: Exploring Your Options
When exploring novated lease options, Leaselab gives you flexibility in what vehicle you lease:
- New car – Choose from the latest models with a full manufacturer’s warranty and modern safety features.
- Used car – Enjoy lower upfront costs while still gaining tax and packaging benefits.
- Existing car – Already have a vehicle? Leaselab can help you novate your current car, letting you salary-package ongoing running costs.
Each path offers distinct financial advantages depending on your needs, budget, and employment situation.
Fully Maintained Packages vs Standard Lease Plans
Leaselab offers both fully maintained and standard novated lease options:
- Fully maintained – Bundles all car expenses (servicing, insurance, registration, tires, fuel/electricity) into one payment. Great for employees who value simplicity.
- Standard lease – Covers only the vehicle finance cost, giving you the freedom to manage other costs yourself.
For most employees, a fully maintained lease provides the best balance of convenience and predictable budgeting — ensuring no surprise bills throughout the year.
How Your Usage and Salary Impact the Savings of a Novated Lease Option
Your personal circumstances influence how much you’ll save.
- Higher salary → greater tax benefit from salary sacrifice.
- More kilometers driven → more value from bundling running costs.
- Employer involvement → smoother payroll deductions and compliance.
Leaselab’s online calculator lets you model your savings instantly, helping you visualize how much you could save with different vehicles or lease terms.
Special Considerations for Electric & Hybrid Vehicles
EV and Plug-In Hybrid Incentives – How Leaselab Guides You
Australia’s growing EV market has made electric novated lease options incredibly attractive. Under the Federal Government’s EV Discount Scheme, eligible electric and plug-in hybrid cars below the luxury-car threshold are exempt from Fringe Benefits Tax (FBT) when leased novatedly.
Leaselab helps employees identify eligible vehicles — such as the Tesla Model 3, BYD Atto 3, Polestar 2, and Kia EV6 — that qualify for the FBT-free novated lease benefit, maximizing your savings potential.
Running Cost Reductions (Fuel, Maintenance, Battery Life) in Lease Packages
Switching to an EV also means significantly reduced running costs. With fewer moving parts, no petrol, and minimal maintenance, EVs can cost up to 70% less to run compared to petrol cars.
Leaselab allows employees to package electricity charging costs (both home and public) within their novated lease option. That means the energy cost to power your EV can also be paid pre-tax — a further saving on top of FBT exemptions.
Is Leasing an Electric Vehicle via a Novated Lease Option Right for You?
Leasing an EV through Leaselab’s novated lease options is ideal if:
- You want to reduce your tax and environmental footprint.
- Your employer supports novated leasing.
- You have consistent access to charging (home or work).
EV technology continues to evolve, and through Leaselab’s guidance, you can select a model that aligns with your budget and driving habits — without committing to ownership.
Steps to Getting Started with Leaselab
How to Get a Quote and Compare Your Novated Lease Options
Starting with Leaselab is simple. Visit their website and use the online quote calculator to compare novated lease options across vehicles and lease terms. You’ll need to provide:
- Your annual salary
- Expected kilometers driven per year
- Preferred vehicle type (petrol, hybrid, or EV)
- Lease term (usually 2–5 years)
Once you receive your personalized quote, Leaselab’s consultants can walk you through the numbers — explaining tax benefits, GST savings, and any applicable FBT exemptions.
Employer Involvement: What You and Your Employer Need to Know
Your employer plays a key role in your new lease arrangement. Leaselab makes it easy by handling all setup and communication. Employers benefit too — offering a novated lease program improves staff satisfaction and retention without additional cost.
Employees should confirm:
- Their employer supports salary packaging arrangements.
- Payroll can manage pre-tax deductions.
- The organization understands its responsibilities in managing lease payments.
Leaselab’s team assists both the employer and employee to make the process seamless from approval to delivery.
What Happens at Lease End: Residual Value Choices and Next-Step Options
When your lease ends, you have several options:
- Pay out the residual and own the car outright.
- Refinance the residual and continue leasing.
- Return the car and start a new novated lease.
Leaselab helps you plan by clearly outlining the residual value and future pathways at the beginning of your agreement. This ensures that your lease concludes without any surprises.
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