How novated leasing works

Enjoy the convenience and savings when you choose to novate your next vehicle with SG Fleet.
hyundai-Ioniq6

How it works

Drive the car of your choice for less with SG Fleet novated leasing. All your car costs are smoothed into one regular deduction from your pay, and you’ll enjoy tax savings along with simplified budgeting and vehicle management. 

1
Choose the car you want
2
Costs are packaged up into one regular payment
3
You sign a novation agreement and your employer pays SG Fleet on your behalf
4
Your lease starts

Vehicle offers

Discover the latest discounts, offers and promotions

Frequently Asked Questions

We take a deep-dive into some commonly asked questions about novated leasing. Have more questions? Get in touch with our team today. We’re here to help. 

Please refer to your employer’s salary packaging policy to check if you’re eligible for a novated lease. You don’t have to earn a huge salary, or use your car for business for it to be worthwhile. Your dedicated consultant will provide you with an individual benefit assessment based on your specific situation to work out how much you can save with a novated lease. 
At SG Fleet, we offer a range of novated leasing options tailored to suit your needs and lifestyle. Whether you’re looking for a used car, a demo vehicle, or even want to lease your current car, we might be able to help. Read more >
Yes! You can novate any car that best suits your needs, provided that it fits within the ATO’s definition of a car and any restrictions under your employer’s vehicle policy. You can choose a new car, a used car (conditions may apply), or a “ Sale and Leaseback” of the car you currently own.
Yes, absolutely – we can help you trade and upgrade without the hassle! 

With SG Fleet TradeAdvantage, selling your car is simple and speedy. Simply complete a simple online evaluation and we’ll get a fair price to you pronto. No pressure – our offer’s valid for 14 days. Once you accept, you can drop off your car or have it picked up and we’ll make the payment into your nominated bank account. 

At the end of your lease, you’ll also have what’s called a ‘residual value payment’ due. This is the amount owing on your car at this time, and is calculated in accordance with the Australian Taxation Office.​​

​​

We’ll be in touch nine months out to discuss your residual value options, which include:​​

​​

1. Novating a new car with SG Fleet;​​

2. Refinancing the existing car for another term*, or​​

3. Paying out the residual value and owning your car outright.​​

 

For more information,  get in touch with one of our consultants
A novated lease allows you to reduce your taxable income, therefore reducing your PAYG income tax. To offset some of this reduction in income tax, the Australian Tax Office (ATO) levies another tax called Fringe Benefits Tax (FBT) on the novated lease that your employer provides to you. 

The amount of FBT levied on your novated lease is calculated using the statutory formula method and is mainly determined by the value of the car you choose to package. A novated lease is tax effective because in most cases your income tax savings will be greater than the FBT payable on your car. 

SG Fleet will structure your salary package using a combination of pre and post-tax deductions. The post-tax deductions are used to offset the FBT liability payable on the car. This method of salary packaging is called the Employee Contribution Method (ECM) and SG Fleet will calculate the ratio of pre and post-tax deductions to cancel out your FBT liability and maximise your tax benefit.  

Useful resources

Hyundai Inster
Car article
Whether they’re all-new models or upgrades of current classics, check out the new cars coming to Australia in 2025.
Car article
Not ready to go all-electric? A hybrid could be the perfect stepping stone.​​ But what exactly is a Hybrid? Could it be the perfect new addition to your garage?
ev9 Air
Car article
Newsflash: two high-end Kia EVs now come without the luxury price tag, qualifying for the government EV Discount

Save more with a novated lease

Get started with our novated leasing calculator to check your potential savings today.
Volvo XC40