Whether you work in the federal government or serve in the Australian Defence Force (ADF), you may already know about traditional novated lease arrangements. But did you realise you can bring your own finance and set up a self‑managed novated lease for better deals?

What Is a Novated Lease for Federal Government or Defence Force Employees?

A novated lease is a three‑way agreement involving you, your employer (e.g. the Department of Defence or an APS agency), and a leasing provider. Lease repayments and vehicle running costs—like insurance, servicing, fuel or EV charging—are deducted from your pre‑tax salary, reducing your taxable income and increasing your take‑home pay.

But What About Self‑Managed Novated Lease & Bring Your Own Finance?

Here’s where you may be missing out: with a self‑managed novated lease, you can source your own finance—often at a lower interest rate—while a provider like SmartSalary or Maxxia still handles the salary packaging and deductions.

This approach, also called bring your own finance, gives you control over the interest rate and lender, while still benefiting from the simplicity of payroll deductions.

Though SmartSalary offers in‑house finance options, many ADF and federal government employees don’t realise that you can negotiate separate finance via WhipSmart or other financiers—and still benefit from SmartSalary managing your pre‑tax salary packaging.

How Federal Government & Defence Force Employees Benefit from Self‑Managed Novated Lease

Defence Force Novated Lease – Take Control & Save More

SmartSalary currently supports over 50,000 defence personnel, offering petrol and diesel vehicles as well as FBT‑exempt EV leases under luxury car tax limits. Such providers lacknowledge that ADF and indeed all federal government staff can access self‑managed or external finance arrangements.

WhipSmart specialises in bringing your own finance, securing better rates than providers typically advertise, especially when financing electric vehicles that qualify for FBT exemptions up to ~$91k (FY 2025‑26). WhipSmart rates are as low from 7.99%, meaning you can get behind the weel of a new EV for around $150 per week, after tax saving.

Email Template: Ask SmartSalary About Self‑Managed Lease

Use the following template to request approval from SmartSalary or your employer to pursue a self‑managed novated lease. Copy and paste this to verify if your department’s contract allows self‑managed leases. If permitted, WhipSmart can help you source the finance that works.

To: customersupport@smartsalary.com.au

Subject: Request for Self‑Managed Novated Lease

Hi Smart Salary Packaging,

I work for [Your Business Name] in [Your State]. I am interested in undertaking a vehicle novated lease but I wanted to ascertain if I can please do a self‑managed lease (ie. bring my own finance).

Am I able to do that through you? Are there any restrictions I should know about?

Assuming I am able to do so, can you please provide me with the relevant paperwork to progress this application, including any novated contract templates that are required by my employer.

Kind regards, [Your Name]