If you are driving less than you used to but still paying for a car, you are not alone.
Working from home has changed how many people think about car ownership. Fewer commutes and fewer kilometres have led to a common assumption that leasing no longer delivers value. That assumption is not correct.
The biggest savings from salary packaging have never depended on how often you drive. They depend on how your car and its expenses are paid for.
The Common Misconception About Car Leasing and WFH
Many people assume a car benefit only makes sense if they are commuting to work every day.
That way of thinking made sense when discussions focused heavily on fuel costs and daily travel. Today, the real value sits elsewhere.
Even if your car spends most weekdays parked at home, the way you fund and manage its costs still matters.
Where The Real Savings Come From
The biggest advantage of a novated lease is not related to mileage. It comes from how vehicle costs are structured.
Instead of paying for your car from your take-home pay, eligible expenses are paid from your salary before tax is applied.
These expenses can include:
- Car repayments
- Registration and CTP
- Comprehensive insurance
- Servicing and maintenance
- Tyres
- Fuel or charging costs
This structure reduces your taxable income. Paying less tax often means more money remains in your pocket.
Whether the car is driven daily or only occasionally does not change that fundamental benefit.
What If You Work From Home Most Days?
For many employees who work from home, car usage has changed rather than disappeared.
Cars are still used for short trips, school drop-offs, weekend driving, and general lifestyle needs. The costs associated with owning a car still exist, even if commuting is less frequent.
Registration, insurance, and depreciation continue regardless of how often you drive. A novated lease helps turn those unavoidable costs into a predictable and tax-effective payment instead of a series of after-tax bills.
Work from home office setup.
Salary Packaging Is Not Just About Cars
Employees who work from home may also have access to other salary packaging benefits, depending on their employer and industry.
These benefits can include:
- Work-related devices
- Professional memberships
- Education and training expenses
- Meal and entertainment benefits in eligible sectors
The real value comes from looking at salary packaging as a whole rather than focusing on a single expense.
For many people, a car is the largest personal cost after housing. That is why packaging it correctly tends to deliver the most noticeable financial impact.
Does Low Mileage Reduce The Benefit?
Driving fewer kilometers can reduce some running costs, but it does not remove the benefit of paying expenses in a tax-effective way.
Lower usage can sometimes work in your favour by reducing wear and tear, lowering servicing costs, and extending the life of your vehicle.
Fixed costs remain the same regardless of mileage. Packaging those costs pre-tax is where the advantage sits.
Why This Still Matters In A Hybrid Work World
Work patterns have changed permanently. Hybrid roles are now common, and full-time office attendance is no longer the norm.
Salary packaging has evolved alongside this shift. It is no longer about funding a daily commute. It is about managing personal expenses more efficiently, regardless of where you work from.
Your car still supports your lifestyle. Your tax position still matters. Your pay structure still creates opportunity.
The Bottom Line
Working from home does not cancel out the value of a novated lease.
If anything, it highlights the importance of looking beyond kilometers driven and focusing on how your money flows.
The real question is not how often you drive. It is how efficiently you pay for it.