What's a novated lease?

A novated lease is a way you can finance a new or used car through salary sacrifice.

With a novated lease, the lease arrangement is made with your employer, so the repayments are taken directly from your pre-tax salary. 

For employees

Lease through salary sacrifice

Payments are taken from your pre-tax salary by your employer. Choose to pay monthly or quarterly over a term of 2 to 5 years.

No maximum loan amount

Take out a minimum $20,000 loan with no maximum amount.

Option to own the car later

We’ll own the car and you can offer to buy it at the end of your lease agreement.

Portable lease

If you move employers, the lease and vehicle move with you (if your new employer agrees).

For employers

Attract & retain employees

Giving employees the opportunity to buy a car with pre-tax income may increase their take home pay.

No balance sheet impact

Salary packaged vehicles are neither an asset or a liability, so there’s no impact on your balance sheet. Plus, if your employee leaves, the lease is theirs.

Rates & fees

  • Competitive interest rates

    Fixed interest rates and repayments for the term of your loan. Get a fast online quote to see how much your interest rates and repayments will be.

How to apply

Apply in 4 easy steps.

1

Get a quote online

Calculate your monthly repayments and get a breakdown of your costs and interest. We'll need some details about the vehicle, as well as the loan amount.

2

Simple application

Eligible CommBank customers can receive a conditional credit decision online. Otherwise we’ll call you to process your application. 

3

Sign your documents online

Once approved, you can sign your finance agreement online with our SmartSign paperless technology.

4

Payment to your supplier

If approved, we’ll pay your supplier promptly after you've signed your agreement online.

Frequently asked questions

Pros of a novated lease:

  • A novated lease can reduce your taxable income
  • You can bundle your vehicle’s expenses into one simple payment

Cons a novated lease:

  • Fringe benefits taxes may apply
  • If you change or lose your job, the repayments become your responsibility

Read more about the pros and cons of a novated lease

Salary sacrifice is an arrangement between you and your employer. When you enter into a salary sacrifice arrangement, your employer makes repayments to your financial provider on your behalf from your pre-tax salary.

Yes. You can get a novated lease for new and used cars. 

What to consider with a novated lease

If you’re an employee and are looking to buy a car, a novated lease arrangement could put you in the driver’s seat and save you money in the process.

3 types of car & equipment finance

Explore the types of vehicle and equipment finance available for your business—like equipment loans, hire purchase and finance leases.
 

What's a chattel mortgage?

New car or equipment financing you can list as an asset on your balance sheet. 

Things you should know

  • The information on this page is for general information purposes only and has been prepared without considering your objectives, financial situation or needs. You should, before acting on the information, consider its appropriateness to your circumstances.

    Applications are subject to the Bank’s normal credit approval and suitability of the asset. Fees, charges and conditions apply. Full terms and conditions will be provided with any agreement upon credit approval.

    Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.