What is a Novated Lease?

A novated lease is a finance arrangement used with salary packaging. It simply means that your employer pays for your car lease and car running costs out of your salary package through a combination of pre-tax and post-tax salary deductions.

A novated car lease allows you to drive the car you want - any make or model, without compromising your lifestyle. It could save thousands on the purchase price and running costs of a new or used car, or even the car you currently drive.

It also gives you the convenience of cashless motoring. Plus you can access TFM’s discount programs for great deals on finance, fuel, maintenance and repairs.

To uncover more detail about novated leasing check out novated lease explained which takes you through the novated lease journey.

How does it work?

Lease set up

Employee chooses a car, and a novated lease arrangement is set up between the employee, employer and TFM

Payments made

Employer makes payments to TFM from the employee's salary

Employee saves

Employee gets the car they want, saving on tax and running costs including car price, fuel, maintenance and tyre purchases

Cashless motoring

Employee enjoys the convenience of cashless motoring


Upfront costs:
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    Car price and accessories
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    Dealer delivery charges
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    First year registration and CTP insurance
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    Purchase stamp duty
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    Novated lease establishment fee
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    Personal Property Security registration fee
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    Luxury Car Tax (if applicable)
Running costs:
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    Mechanical repairs, maintenance and servicing
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    Comprehensive insurance
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    Fuel
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    Registration/CTP renewals
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    Replacement tyres
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    Roadside assistance

Novated Lease Protection Insurance

TFM also offers novated lease protection insurance as an optional extra. That way, if you are made redundant from your employer, your lease will continue to be paid for up to 180 days, with a hand-back option if you don’t gain employment within that time.

Not included:
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    Tolls
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    Fines
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    Insurance excess

Novated Lease Protection Insurance

TFM also offers novated lease protection insurance as an optional extra. That way, if you aren’t able to work, your lease will continue to be paid for up to six months, with a hand-back option if you don’t gain employment within that time.

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