Frequently Asked
Novated Leasing Questions

Click to expand each question. If your questions are not answered here feel free to call 1800 811 922.


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Before You Apply

What is included in my Novated Lease payment?
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We’ve taken all the hassle out of running your new car by including insurance, maintenance and tyre management, fuel, breakdown assistance, 24/7 accident management and registration – all bundled into one easy payment. Please note we can’t include tolls or parking infringements, under ATO guidelines.

Can I choose my own comprehensive insurer?
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Yes. All leased vehicles must be comprehensively insured, and this cost is included in your package.
You have two options:

  1. We can arrange insurance through our preferred supplier at competitive rates, designed with Novated Leasing in mind, or
  2. Source your own insurance and provide the annual premium and policy details to us so we can reimburse you and then include this amount in your package
What type of lease do most people have?
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In general, it’s fairly evenly split between Fully Maintained Operating Leases and Budgeted Finance Leases. The average term is 3 years but you can choose up to 5 years for an Operating Lease, or 7 years for a Budgeted Finance Lease.

Do I have to pay Fringe Benefits Tax (FBT)?
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Yes, FBT is incurred through a Novated Lease, however if your employer can support the Employee Contribution Method and you make contributions from your post-tax income towards your running costs equivalent to the FBT liability, you will reduce the FBT liability to zero.

How does the Luxury Car Tax Limit affect my lease?
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If your car’s purchase price is above the Luxury Car Tax Limit, (which is determined by the ATO), this additional tax will be itemised and included in your monthly lease payment. We recommend you seek independent financial, tax and legal advice before leasing a car that falls into this category.

Can I buy any type of vehicle on a Novated Lease?
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It must be deemed a ‘car’ by the ATO – motorbikes, boats or trucks do not qualify. Apart from that, you can choose any car you like, even a secondhand car (subject to satisfying certain conditions).

When will I get my car?
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Delivery time depends on the availability of stock at dealerships or manufacturers, optional extras, colour selected and the build dates. If your vehicle needs to be ordered and built to specifications this can delay delivery.


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During Your Lease Period

You are responsible for anyone who uses the vehicle and there may be specific restrictions from your insurer or employer about who can drive the car.

Who can drive my Novated Lease car?
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You are responsible for anyone who uses the vehicle and there may be specific restrictions from your insurer or employer about who can drive the car. Please ensure you check for any restrictions with your insurer.

When will I get my fuel card, and where can I buy petrol?
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You should receive your Fleet Card within 7-10 working days of your lease being activated. Fleet Card is accepted at over 6,000 participating multi-branded service stations around Australia. You can search for your nearest service station via the Merchant Locator tool on our website.

What do I do if I need help once my vehicle has been delivered?
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You will receive a Driver's Assistance Card with your Welcome Pack. This card details a 24-hour Driver Assistance number - we're here to help with any accident, breakdown or vehicle repairs. The card also has important information you will need for Driver Assistance - we recommend you keep it in your glovebox with this pack.

What do I do when my car is due for a service?
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Use our website Merchant Locator to find your nearest dealer and organise a convenient service time. Let them know your car is leased with Custom Fleet and they will know what to do next.

How do I track what I have spent against my lease budgets?
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Our intuitive online reporting makes it easy to stay on top of your lease. This is available via "My Car" in Fleet Office.

How do I manage my car registration?
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Custom Fleet will arrange for the car to be registered and depending on the lease type, the mailing address will either be yours or Custom Fleet's. The cost of registration is included in your lease payments.

What if I spend less money than my budgeted amount?
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The difference is returned to you via your payroll at the end of the lease term.

What if I spend more money than my budgeted amount?
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The difference is invoiced to your employer and deducted via your pre-tax salary during and /or at the end of the lease term.

When is my actual spend vs. budgeted amount reconciled?
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This takes place at the end of your lease term, unless one of the following events takes place:

  • you are tracking ahead of behind on your budget, in which case we may review the budget periodically,
  • your employment is terminated, or
  • you change employer.

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Ending Your Lease

What happens if I leave my employer during my lease term?
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If you leave or are planning to leave your employer, they must notify Custom Fleet by submitting an Annexure B (Schedule 1 – Notice of Termination of Novation by Employer) form as soon as possible. The novated agreement with your employer will be terminated once you leave that company, and you will therefore become responsible for making all lease payments directly to Custom Fleet. There may be other arrangements available – please contact us on 1800 811 922 for more details.

What happens at the end of my lease?
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A few months prior to the end of the lease term, we’ll contact you and remind you that your lease term is approaching and outline your available options.

What happens to my car at the end of the Novated Lease?
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It depends on the type of Novated Lease you have. With finance leases we may offer to sell you the vehicle for the residual amount, or we can sell it through our sale process. With an operating lease, you can just hand it back with the keys, and upgrade to a new car on a new lease.


iPhone Driver App

Already switched to Novated?

Manage and Monitor your lease with our Driver App