About WhipSmart

WhipSmart has built a user-friendly platform for you to order, manage, maintain and upgrade your EV, PHEV or FCEV.

We take care of all the costs and hassle of owning an EV. 
All your costs are in one simple place and are paid monthly via salary sacrifice from your pre-tax salary, saving you thousands and you’ll never have to worry about a surprise bill again.

WhipSmart specialises in the lease of EVs and PHEVs that are newer than July 2022 as those vehicles are able to be leased with no fringe benefits tax (47%) applied, which is a huge saving compared to standard novated leases.

What is a Novated Lease?

A novated lease is an agreement between an employee, 
their employer, WhipSmart and a finance company. 
It involves the lease of a vehicle, with the employer 
making lease payments on behalf of the employee.

Benefits of novated leases

The Vehicle

A novated lease is an agreement between an employee, 
their employer, WhipSmart and a finance company. 
It involves the lease of a vehicle, with the employer 
making lease payments on behalf of the employee.

Novated Lease Agreement

The employee and employer signs a novated lease agreement documents with WhipSmart and its finance partner. This Novated Lease Agreement outlines the lease terms, including the lease duration, the residual value of the vehicle, and the regular lease payments.

Salary Sacrifice

The employer deducts the lease payments from the employee’s pre-tax salary, reducing their taxable income. This is the primary tax advantage of a novated lease, as it can lead to substantial tax savings. But the employee also benefits from GST-free running costs and FBT-free leases (applicable to all EV types newer than July 2022).

The Process of a Novated Lease

Vehicle Selection
WhipSmart or the employee selects 
a vehicle they want to lease and negotiates the purchase price with 
the seller. The vehicle can be brand 
new or used, and it can be any allowed 
EV make or model, depending on the 
employee’s preferences and budget.
Lease Application
The employee submits a novated 
lease application to WhipSmart online. WhipSmart and its finance partner 
will assess the application and, 
once approved, will facilitate the purchase the chosen vehicle.
Novation Agreement
Novated lease agreement documents outline the responsibilities of the employee, employer, WhipSmart and its finance partner. The employer agrees to make lease payments on behalf of the employee, and the employee takes on responsibility for vehicle’s upkeep.
Lease Payments
Lease payments are deducted from 
the employee’s pre-tax salary by the employer, reducing the employees taxable income. The employer then transfers the funds to WhipSmart, covering the lease payments and other associated running costs.
Running Costs
The running costs of the vehicle are 
pre-paid by the employee as part of the salary sacrifice lease payments. When a cost is due, ie. scheduled service, the cost is paid by WhipSmart from the accrued payments. Your available finances are available to be viewed at any time within the user portal.
End of Lease
At the end of the lease, the options are: 1. Sell or trade the vehicle car. If your sale price (incl GST) is more than the residual price, then you can retain the difference as a tax-free windfall and enter into a new lease with a new vehicle. 2. Re-lease the car and retain your tax benefits. The residual (ex GST) becomes the new vehicle price on which the new lease payments are calculated. 3. Keep your car by paying off the residual (incl GST).

NB. If the residual is paid out, GST is applied. If re-leased GST is not applied.

In summary, novated leases in Australia offer an attractive way for employees to finance and manage their vehicles while enjoying tax benefits and flexibility in their choice of cars. It’s essential to consult with a qualified financial advisor or expert before entering into a novated lease agreement to understand the specific financial implications and benefits for your situation.

What are the Key Benefits of Novated Leases

There are numerous benefits available to you through novated leasing. Below are the key reasons you should novated lease your next electric vehicle.

Tax Savings
The most significant advantage of novated leasing is the potential for tax savings. By paying lease payments with pre-tax income, employees can reduce their taxable income and therefore pay less income tax.
Flexible Vehicle Choice
Employees have the freedom to choose the vehicle they want, including the make, model, and specifications, making it a highly customisable option.
Novated leases simplify vehicle ownership and management, with the employer handling lease payments and employees able to include running costs in the package.
Potential Savings
Group buying power and access to fleet discounts through employers can result in cost savings on the purchase price and running costs of the vehicle.
FBT Savings
The FBT Exemption for Electric Vehicles now makes novated leases considerably more financially viable. An FBT exemption is available for electric cars that are both first held and used on or after 1 July 2022. This removes one of the significant costs of a car under a novated lease - fringe benefits tax. Click here to see what cars are FBT-free.

Novated leasing is a popular and tax-efficient way for Australian employees to finance and manage their vehicles.

It allows individuals to lease a car and have their employer take on some of the financial responsibilities, making it a cost-effective and convenient option.