Did you know your partner and family member can benefit from novated leasing too?
When most people think about a novated lease, they picture an employee driving their new car funded through their pre-tax salary.
But here's what often is overlooked... the household can benefit from a novated lease too, including your partner, child or parent!
Whether your partner drives the car daily, shares the school run, or simply benefits from the extra cash freed up in your family budget, understanding how a novated lease works for families can help you make smarter decisions together.
What is a novated lease?
A Remunerator novated lease is the most tax-effective and stress-free way to buy a car. In a nutshell, it's an easy way to make major savings through buying a car without doing any work.
A novated lease involves a three-way agreement between the employee, the employer, and the financier administered by Remunerator.
We bundle the price of the car and all its associated running costs into one regular payment. The repayments comes from your pay before income tax is applied. This reduces your taxable income meaning you'll make income tax savings by getting your new car.
How a novated lease works for your partner or family.
Here's the part many families miss: the car doesn't need to be used exclusively by the employee. In most novated lease arrangements, your family member can:
- Drive the leased car as the primary or secondary driver.
- Be listed as an authorised driver on the insurance policy.
- Use the vehicle for daily commuting, school pickups, or errands.
- Benefit indirectly from household savings, as novated leasing payments are deducted from the employees pre-tax savings, potentially freeing up more of your combined take-home pay.
Key benefits for your partner or family
- Income tax savings
As a novated lease payments are paid from pre-tax salary, the employees income tax can be reduced potentially increasing take home pay. This can mean more savings in the household overall.
- 2. One combined budget for car costs
All car running costs like fuel, servicing, insurance, maintenance, and insurance, are bundled into a regular monthly or fortnightly payment. This makes it easier for families to manage a joint budget without surprise expenses.
- No out of pocket expenses
As all car related expenses are budgeted for on an annual basis, this can mean no unexpected mechanic bills or rego renewal shocks.
- Access to a newer, safer car
Novated leases can often make it more affordable to drive a newer car with modern safety features. This can be meaningful if your partner is doing school runs or long commutes.
- Flexibility of use
There's generally no requirement that the employee is the primary driver. This makes novated leases a practical option for single-income households or families where one family member does the bulk of the driving.
- Potential EV savings
If you lease an eligible electric car, FBT exemptions may apply, which can significantly boost overall household savings. Savings your family can benefit from just as much as you do.
Learn more about the electric car discount.
Steps to get started
If you think a novated lease could work for your household, here's how to get the ball rolling:
- Talk with your family member about driving needs. Decide who will be the primary driver, how many kilometres you expect to travel annually, and what type of vehicle suits your family.
- Get a quote from Remunerator. Use our calculator to get your savings estimate.
- Compare vehicle options. Consider fuel-efficient or electric vehicles for potential FBT savings.
- Review and refine your quote. Book your individual consultation with a novated leasing specialist to personalise your quote to you further.
- Add your partner as an authorized driver. Make sure your insurance policy reflects who will be driving the vehicle regularly.
This article is general information only and does not constitute financial or tax advice. Consult a licensed financial adviser or your novated lease provider for guidance specific to your situation.