Finance & Insurance Options at Clintons Toyota

A cost effective employee benefit

What is a Novated Lease?

A novated lease is a three way agreement. The employee, as lessee and the employer enter into a novated lease agreement with Toyota Fleet Management as the lessor.

All of the lessee's obligations to pay vehicle lease rentals are transferred ("novated") to the employer. The employer then makes such payments to Toyota Fleet Management on behalf of the employee for the term of the novation - or until employment ceases, should it occur during the lease term.

Employees can choose their own vehicle, and have their employer pay the vehicle lease rental from their gross salary, potentially giving them a higher disposable income.

Toyota Fleet Management can also administer post tax employee contributions to minimise fringe benefit tax liability.

Employee benefits:

  • Greater flexibility with the choice of a vehicle.
  • Financing for the vehicle is paid with pre-tax dollars.
  • Employee can make an offer to purchase the vehicle at the end of the novated lease term.
  • Fixed payments for the term of the lease.
  • A choice of lease terms from 1 - 5 years.
  • The vehicle may be leased for 100% private use.
  • More than one vehicle may be leased with employer's consent.

Employer benefits:

  • Removes liability and asset from balance sheet.
  • Reduces administration - one invoice for all Novated vehicles.
  • An easy and cost-effective way to add value to an employee's remuneration package.
  • The vehicle stays with the employee, even if they move to a new job.
  • Employer does not have to worry about vehicle sale or disposal at the end of term.
  • Reduces payroll tax and Work Cover expenses (subject to State laws).

*Subject to Toyota Finance policy and approval.  #Subject to employer and TFpolicy and approval.  ^The extent to which a Novated Lease package may improve your after tax disposable income depends on various factors including employer packaging policy, kilometres travelled during the applicable FBT year, whether the lease is a luxury or non-luxury vehicle lease and employee marginal tax rates.

Approved applicants only. Terms and conditions apply. Toyota Finance is a division of Toyota Finance Australia Limited ABN 48 002 435 181, AFSL and Australian Credit Licence 392536. This information provided by Toyota Finance and is of a general nature and for information only. Nothing on this website constitutes or should be considered to constitute legal, taxation or financial advice. Before making a decision about any of the products and services featured on this website, you should consult with your own independent legal, taxation and financial advisors, who can advise you about your personal circumstances.