How novated leasing can help employers support staff through cost-of-living pressures

By offering practical benefits alongside salary, employers demonstrate a genuine commitment to supporting employees both inside and outside the workplace.

While employers have many ways to support employee financial wellbeing, novated leasing is one benefit that can provide ongoing value without increasing salary costs.

How novated leasing supports employees

A novated lease allows eligible employees* to salary package a vehicle, with finance and eligible running costs combined into one regular payment through payroll.

Depending on an employee's individual circumstances and the vehicle selected, a novated lease may provide tax savings while making vehicle expenses easier to budget.

Eligible running costs can include:

• Registration

• Insurance

• Servicing and maintenance

• Tyres

• Fuel or EV charging (where applicable)

For eligible battery electric vehicles (BEVs) with a value under the applicable Luxury Car Tax (LCT) threshold, additional tax incentives may apply under current Australian legislation, making EV ownership more accessible for many employees.

By simplifying vehicle ownership into one regular payment, novated leasing can help employees better manage one of their largest household expenses.

Why more employers are offering novated leasing

Supporting employees through cost-of-living pressures benefits both employees and employers.

Offering novated leasing can help organisations:

• Strengthen their employee value proposition

• Attract and retain talented employees

• Support employee financial wellbeing

• Differentiate themselves in a competitive employment market

• Demonstrate a commitment to employee support beyond salary

For many organisations, novated leasing is an effective way to enhance their employee benefits offering without increasing salaries across the workforce.

Make sure employees know what's available

Even the most valuable employee benefit won't have an impact if employees don't know it exists.

Regular communication through onboarding, email campaigns, intranet articles, webinars and workplace events helps increase awareness and encourages employees to explore the benefits available to them.

Providing access to helpful resources such as FAQs, vehicle calculators and educational content can also help employees understand whether a novated lease may be suitable for their circumstances.

Supporting employees today builds stronger workplaces tomorrow

Cost-of-living pressures continue to influence financial decisions for many Australian households. Employers who invest in meaningful workplace benefits can help employees navigate these challenges while building a more engaged, loyal and productive workforce.

Novated leasing is one practical way organisations can provide valuable financial support, helping eligible employees better manage the cost of owning and running a vehicle while enhancing their overall employee benefits program.

*Eligible employees must be paid through the PAYG system (not self-employed) and meet the finance provider's credit assessment criteria, including having no significant adverse credit history.