What is a Novated Lease?

A novated lease is a three-way agreement between you (employee), your employer, and WhipSmart as the finance provider. Your employer makes lease payments on your behalf via salary sacrifice.

STEP 1
Vehicle Selection

You choose any EV eligible for the FBT exemption.Learn More

STEP 2
Novated Lease Agreement

Documents signed by you and your employer.Learn More

STEP 3
Salary Sacrifice

Employer deducts lease payments before tax.Learn More

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Novated Lease vs Outright Purchase

Based on $120k Salary and 60 Month Lease and Tesla Model Y RWD (Market Cost: $68,068.00)

SAVE

$8,490

OVER 5 YRS

Coverage Type

Cash Purchase

WhipSmart Novated Lease

Upfront Cost

$68,068

  • $0.00

Running Costs

$3,876

  • Included

Annual Tax Paid

$29,188

  • $24,058

Interest on Savings*Based on 6% Interest in Offset/Interest Account

$0.00

  • $20,111

ResidualOption to own payment

$0.00

  • $18,634

Net AssetsAfter 5 Years

$18,634

$27,124

↑ $8,490 more than cash

Upfront Cost

Cash Purchase

$68,068

Novated Lease

  • $0.00

Running Costs

Cash Purchase

$3,876

Novated Lease

Included

Annual Tax Paid

Cash Purchase

$29,188

Novated Lease

  • $24,058

Interest on SavingsBased on 6% Interest in Offset/Interest Account

Cash Purchase

$0.00

Novated Lease

  • $20,111

ResidualOption to own payment

Cash Purchase

$0.00

Novated Lease

  • $18,634

Net Assets After 5 Years

Cash Purchase

$18,634

Novated Lease

$27,124

↑ $8,490 more

*Based on $69,068 (Amount Not Spent on Vehicle Price)

The Novated Lease Process

Getting started with a WhipSmart EV novated lease is simple.

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STEP 1
Vehicle Selection

Choose any EV, HEV, or ICE vehicle — new or used — from any dealer across Australia.

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STEP 2
Lease Application

Submit your application online. Receive a personalised quote with all costs and tax savings included.

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STEP 3
Agreement Setup

Employer agrees to make payments on your behalf. We handle all paperwork and employer approval.

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STEP 4
Lease Payments

Payments deducted from your pre-tax salary automatically each pay cycle.

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STEP 5
Running Costs

Fuel/charging, servicing, insurance, and maintenance managed through your lease account.

Your End-of-Lease Options

When your lease term ends, you have three flexible options.

OPTION 1

Sell or Trade

If the sale price exceeds the residual value, you keep the difference. A great option if your EV has held strong value.

Note: GST applies if residual is paid out.

OPTION 2

Re-Lease

Start a new novated lease on a fresh EV and continue receiving all the same tax benefits / running cost savings.

Note: GST does not apply on re-lease.

OPTION 3

Keep the Car

Pay out the residual value and own the vehicle outright. The car is yours to keep — no further lease obligations.

Note: GST applies on residual payout.

The Benefits of Novated Leasing

Getting started with a WhipSmart EV novated lease is simple.

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Tax Savings

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Flexible Vehicle Choice

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Convenience

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Potential Savings

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FBT Exemption

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All Running Costs

Find a Deal

Electric Life
Electricity

Included in your novated lease is a budget for all charging requirements. Whether using public stations or home power, your EV lease covers these costs pre-tax. Reimbursements are made based on your odometer and paid back at 4.2c/km

Insurance

Comprehensive insurance is bundled into your lease and paid from your pre-tax salary, covering your vehicle against accidents, theft, fire, and third-party liability.

Maintenance

Scheduled servicing and maintenance costs are included in your lease budget, so unexpected repair bills never catch you off guard.

Registration

Your annual vehicle registration is covered as part of your pre-tax lease package, with renewals managed on your behalf.

Wallbox Charger

A home wallbox charger can be included in your novated lease, giving you fast, convenient overnight charging paid from your pre-tax salary.

Tyres

Tyre replacements are covered within your running cost budget, keeping you safe on the road without any out-of-pocket expense.

What Our Customers Say

"Transitioning our team from company cars to novated leases has been a game-changer. We’ve reduced admin time, improved cash flow, and staff love choosing their own vehicles."

Sarah Thompson

"I had a great experience with WhipSmart Novated Leasing and very happy with the outcome even though I am located in VIC. 
I received a very competitive rate, the novated leasing process was handled smoothly and efficiently."

Anura S

"We’ve saved thousands in fleet maintenance and FBT since switching to a novated lease model. The process was seamless, and employees appreciate the transparency."

Lisa Grant

"Transitioning our team from company cars to novated leases has been a game-changer. We’ve reduced admin time, improved cash flow, and staff love choosing their own vehicles."

Sarah Thompson

"I had a great experience with WhipSmart Novated Leasing and very happy with the outcome even though I am located in VIC. 
I received a very competitive rate, the novated leasing process was handled smoothly and efficiently."

Anura S

"We’ve saved thousands in fleet maintenance and FBT since switching to a novated lease model. The process was seamless, and employees appreciate the transparency."

Lisa Grant

Frequently Asked Questions

Have a specific question?

Am I eligible for a novated EV lease?

Most Australian employees whose employer offers salary sacrifice or novated lease arrangements are generally eligible to apply. This typically includes full-time and part-time employees, as well as many fixed-term and contract workers, provided their employment arrangement meets standard novated lease criteria.

Can I lease a used or pre-owned EV?

Yes, you can novated lease a used or pre-owned EV, though the vehicle must meet certain age and condition requirements set by the financier. Note that used EVs may not qualify for the FBT exemption if they were first held and used before 1 July 2022 — get in touch and we’ll confirm eligibility on any specific vehicle.

How does novated leasing affect my tax?

Your lease payments and running costs are deducted from your pre-tax salary, reducing your taxable income and the amount of income tax you pay each year. For eligible EVs, there’s no Fringe Benefits Tax liability either — meaning the savings stack on both sides.

Are electric vehicles exempt from Fringe Benefits Tax (FBT)?

Yes, eligible battery electric vehicles, plug-in hybrid EVs, and hydrogen fuel cell vehicles below the luxury car tax threshold are fully exempt from FBT under the Treasury Laws Amendment (Electric Car Discount) Act 2022. This is one of the biggest financial advantages of leasing an EV through salary packaging right now.

What EVs are eligible for the FBT exemption?

To qualify, the vehicle must be a battery EV, plug-in hybrid, or hydrogen fuel cell vehicle; first held and used on or after 1 July 2022; and priced below the luxury car tax threshold (currently $91,387 for fuel-efficient vehicles in FY2025-26). Most popular EVs — including Tesla Model 3, Model Y, BYD Atto 3, and Polestar 2 — fall comfortably within this threshold.

Is an EV novated lease cheaper than buying outright?

In most cases, yes — significantly. When you factor in pre-tax payments, zero FBT, GST savings on the purchase price, and running costs bundled pre-tax, most employees on a salary of $80k+ will come out ahead compared to buying the same vehicle with after-tax cash. The comparison table above shows a real-world example saving $8,490 over five years on a Tesla Model Y.