Novated lease FAQs

• Can secondhand or privately owned vehicles be leased?
• How many vehicles can an employee lease?
• Who prepares all the documentation?
• What happens if there is a loss on the disposal of the vehicle?
• Can I take a novated lease for a motorbike?

Can secondhand or privately owned vehicles be leased?
Secondhand motor vehicles are acceptable, subject to certain conditions. Privately owned motor vehicles can also be sold to us and leased back under our novated lease program.

How many vehicles can an employee lease?
In theory there is no limit to the number of cars an employee can lease, but an employer is likely to have specific policies or guidelines in place.

Who prepares all the documentation?
We prepare the lease and novation agreements. The Australian Taxation Office has approved our lease documentation.

What happens if there is a loss on the disposal of the vehicle?
The employee is legally responsible for the vehicle and must ensure that it is properly maintained and cared for. The employee remains liable for any loss on the disposal of the vehicle.

Can I take a novated lease for a motorbike?
While we do not have a policy restriction on the approval of novated leases for motorbikes, the fringe benefits tax (FBT) rules are different to those for cars and will not provide the same benefits to the employee. 

• Important information about advice
  As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. Applications are subject to the Bank’s normal credit approval. Fees and charges are payable.