Drive your salary further with a Škoda Novated Lease
A Škoda Novated Lease is an agreement between you, your employer and Škoda Financial Services. It lets you pay for a vehicle through your salary, generally using a combination of pre-tax and post-tax income. Potential savings depend on your circumstances and the arrangement.
You can also include eligible running costs, such as registration, CTP, comprehensive insurance, fuel or charging, and maintenance. Alto Škoda North Shore can explain the options and help you get started.
Explore the potential benefits
Pay less tax
Using pre-tax salary towards eligible vehicle costs may reduce your income tax. The benefit depends on your individual circumstances.
Save on GST
Your arrangement may offer GST savings on eligible vehicle and running costs. Ask for a quote showing how these apply.
Flexible terms
Choose an available lease term of up to five years, subject to approval, with the end-of-term payment explained upfront.
Bundle running costs
Combine lease payments and eligible running costs into regular salary deductions, helping you budget for vehicle expenses throughout the year.
How your Novated Lease works with Škoda
Changing roles?
You may be able to transfer your novation agreement to a new employer if they agree to participate. Otherwise, you’ll need to make the finance payments directly from your post-tax income, and running costs can no longer be bundled through that arrangement.
Speak with Škoda Financial Services before changing employers to understand the next steps and your payment obligations.
Next steps
Contact Alto Škoda North Shore to discuss your preferred vehicle and request a personalised quote. Review the salary deductions, included costs and residual payment due at the end of the lease.
Your accountant or financial adviser can help you assess whether the arrangement suits your circumstances.
Škoda Financial Services Australia Pty Limited (ABN 20 097 071 460), Australian Credit Licence Number 389344.
More solutions, less worries
Škoda Choice
Škoda Choice32 is our Guaranteed Future Value program – a flexible finance solution that provides you with the assurance of knowing exactly what the minimum value of your vehicle will be at the end of your loan term, and gives you the option to trade in, retain or return your vehicle. The choice really is yours.
Insurance designed for Škoda drivers
Škoda Insurance cover is designed with Škoda drivers in mind. It includes new for old replacement on vehicles less than three years old, genuine replacement parts, and you can pay in instalments at no extra cost. Now, that’s clever thinking.
Frequently Asked Questions
Whether you are an employee, or an employer, we have shortlisted some FAQs below.
FAQs for employees
With a car loan, you’d be making repayments with your post-tax salary. With a novated lease, your payment uses some of your pre-tax salary, which could lower your taxable income.
Your novated lease payments include your car finance along with registration, compulsory third party insurance (CTP), comprehensive insurance, charging/fuel, maintenance and tyres. We’ll discuss everything and allocate a tailored monthly budget. The best part is, your budget can be carried over to the next month, or paid out with your salary.
Yes, you can salary package electricity costs within your EV lease. You must be able to demonstrate specifically how much energy – and the cost of the energy – is going towards charging your EV. This can be either obtained through a separate smart meter installed in your home, or by purchasing a fast, in-home charger with the metering included within it.
If it’s included in the cost of the car, then the cable charger will be bundled neatly into your novated lease payment. Unfortunately, the current ATO rules don’t allow in-home wall box chargers or third-party chargers bought separately to be bundled into a novated lease.
A lot of public chargers, like those at shopping centres, are free to use. For the ones that require a payment, just keep the receipts and claim them through your budgeted account.
At the end of your lease there are three options available to you: Upgrade to a new car, which means you take out a new novated lease or other finance loan type that suits your needs. All you need to do is trade in your current vehicle and pay any amount owing. Extend your lease by refinancing the residual amount (the balloon payment you owe at the end of your lease) and keep making regular payments. Keep your car, buy your current car outright by paying the residual amount.
A residual value is the value of the car at the end of the lease term. The residual value is agreed when you take out a novated lease and is used to calculate the monthly lease payment. This value is incorporated into your novated finance lease. All novated leases require you to pay a residual (aka ‘balloon’) GST inclusive amount when the lease ends.
If you change jobs, you simply take the car with you and continue to make the car finance repayments directly or transfer your novation agreement to your new employer. If you or your new employer choose not to have the novation agreement transferred to your new employer, the finance payments will be for the car only and will need to be made from your post-tax salary and you will not have the option to bundle running costs into your payment.
FAQs for employers
There are no setup or ongoing costs for you, the employer. The lease is fully employee-funded.
Novated leasing is not limited to large corporations. Whatever the size of your business, you can offer this benefit to any of your employees who receive a regular salary.
The process is straightforward and Škoda Financial Services manages the administration, minimising work for your HR and payroll teams.
Your employee is responsible for the payments, but the employer facilitates the payments through payroll deductions.
Employers can claim input tax credits on lease payments, further reducing costs. Škoda Financial Services will provide you with an input-tax-credit (ITC) report.
Škoda Financial Services use the Employee Contribution Method (ECM) for novated leases. This is where a portion of the lease cost is deducted as an ‘employee contribution’ from your employee’s post-tax salary – effectively eliminating the fringe benefits tax (FBT) obligation. At the end of the tax year, we’ll send you a report with the total taxable value of your employee’s benefits and all the information you need for the Australian Tax Office.
Yes, there are tax incentives and exemptions for eligible low-emission vehicles in certain circumstances. Škoda Financial Services can advise on current incentives and benefits.
Employees can take the lease with them to a new employer or arrange to make personal payments. Our transition support ensures a smooth handover.
Employees have the option to refinance, purchase the car, or trade it in for a new car and a new lease.
Yes, Škoda Financial Services provides comprehensive support for payroll deductions, tax reporting and compliance.
Enquire Now
To get a no obligation, competitive finance and insurance quote, please contact us on 02 8817 4499 or email us using the form below:
³²Škoda Choice has a Guaranteed Future Value (GFV) which is the minimum value of your vehicle at the end of your finance contract as determined by Škoda Financial Services (SFS) ABN 20 097 071 460, Australian Credit Licence 389 344. If you decide to return your vehicle to SFS at the end of your term, SFS will pay you the agreed GFV, which will be put against your final payment subject to fair wear and tear conditions and agreed kilometres being met. At the end of your term, you can elect to (1) trade-in; (2) return; or (3) retain the vehicle by paying the GFV owed to SFS at the end of the loan term after all repayments have been made. You will be liable for any loan contract deficit and additional charges apply if you exceed the nominated kilometre allowance and/or the vehicle is not in an acceptable condition. Available on new, demonstrator or Certified Pre-Owned vehicles for selected Škoda models. Contact your nearest Škoda dealer to check eligible vehicles for this program. To see if this product is right for you, please see our Target Market Determination on our website and/or seek independent advice. *Subject to a credit assessment and SFS lending criteria. Fleet, government, rental buyers, hire car and chauffeur companies excluded.
Škoda Financial Services (SFS) ABN 20 097 071 460, Australian Credit Licence 389344. View the Target Market Determination for our Financial Services products here.
26Only available when you enter a novated lease with Škoda Financial Services (ABN 20 097 071 460), Australian Credit Licence Number 389344 (SFS) which is administered by Oly ABN 69 674 252 629. Oly may receive a commission from SFS in connection with a novated lease.