do novated leases save money

Short answer: they can save money—sometimes a lot—but only if the numbers suit your situation.

A novated lease lets you salary-package car costs using pre-tax income, often with GST input credits on running costs, which lowers taxable income and out-of-pocket spend.

Savings are strongest for higher tax brackets, predictable kilometres, and especially eligible EVs (FBT-exempt under current rules below the LCT threshold); weaker if you’re low-income, drive little, pick a thirsty car, or cop fat fees/interest.

Run a full comparison: drive-away price, finance rate, management fees, FBT method (statutory vs operating cost), fuel/charging, servicing, tyres, insurance, rego, and the residual you must pay at term end.

If the post-tax “all-in” cost beats a normal loan or cash by a clear margin, you’re winning; if it’s neck-and-neck, the convenience may be the only real perk.

Bottom line: get an itemised quote from the provider and a second opinion from an accountant—no one ever saved money by guessing.