How to Apply for a Novated Lease Application in 2025?
A novated lease is one of Australia’s most tax-effective ways to drive a new car. It’s a three-way agreement between you, your employer, and a financier where your lease payments are deducted from your pre-tax salary. This unique structure can save you thousands in GST, income tax, and running costs compared to traditional car financing.
Key Benefits:
- Lower taxable income (potentially placing you in a reduced tax bracket)
- GST savings on the vehicle purchase price
- Bundled maintenance/insurance options
- Flexible end-of-lease choice
When applying for a novated lease, being prepared with the right documents can save you time and ensure a smoother application process.
A novated lease is a simple way to finance a vehicle through salary packaging, but to get started, you’ll need to provide some essential details.
This checklist will guide you through the documents required and how One Car Group makes the process straightforward and hassle-free.
What is Needed for a Novated Lease Application?
Applying for a novated lease through One Car Group is straightforward. Here’s a quick overview of the process:
- Initial Consultation: Speak with novated lease experts to determine your eligibility.
- Document Preparation: Gather all necessary paperwork listed in our checklist.
- Application Submission: We help submit your application to a panel of trusted financiers.
- Approval & Vehicle Selection: Once approved, you choose your vehicle and finalise your lease.
Our consultants will support you at every stage to ensure your novated lease application is as simple and hassle-free as possible.
Step-by-Step: Novated Lease Application Process
1. Confirm Eligibility
The first step is making sure you’re eligible. To apply, you must be employed and earning a consistent income—usually through a PAYG arrangement. Your employer must also allow salary packaging, as the lease relies on pre-tax payroll deductions. Most full-time and part-time employees can qualify. Even contractors or casual workers may be eligible depending on their employer’s policy.
If you’re unsure about eligibility, it’s a good idea to speak to a consultant or request a quick pre-assessment before applying.
2. Choose the Car You Want
You’re not limited to just brand-new cars. A novated lease can be used for:
- A new vehicle from a dealership
- A used car (usually under 7–8 years old by lease end)
- Your current vehicle, under a “sale and lease-back” arrangement
Used cars must meet certain conditions, like passing a mechanical inspection and having a full service history. Leasing your current car is also possible if it meets the age and condition guidelines—this is a great option if you’ve recently purchased a car outright and want to access tax savings going forward.
3. Employer Approval
Since a novated lease is based on salary packaging, your employer plays a key role. They need to agree to deduct lease payments from your salary and forward them to the finance provider. This typically involves a simple salary packaging agreement that your HR or payroll department signs. If your employer is unfamiliar with novated leases, we can help guide them through the process.
4. Prepare and Submit Documents
Once your car is chosen and employer support is confirmed, the next step is gathering the necessary paperwork. Most providers will request the following:
Documents required for a Novated Lease Application
There are several documents required to help us understand your circumstances. We recommend that before undertaking your loan application, you have some of the following documents ready:
A. Identification
In most cases, you will only need a clear colour copy of your drivers licence (front & back) which shows your current address. If your drivers licence is under 12 months old and you have not applied for credit in the past then the financier may ask for other forms of identification such as a passport, medicare card or bank issued card.
B. Proof of Income
Most application for finance on a novated lease only require a current payslip that shows year to date income, before and after tax. If it is a new financial year (July to September) then the financier may ask for a payslip to June.
In the event your financiers are a bit more complicated such as owing a rental property then the financier will want to see three months of rental income and expenses from your managing agent.
C. Proof of Where You Live
If you have lived at your current address for a short time the financier may wish to further confirm your home address. This can be done by providing one of the following:
• Mortgage statement;
• Council rates notice;
• Tenancy agreement; or
• Rental receipt
D. Additional Information Needed for Your Application
As part of the application, you’ll also need to provide details about your assets, liabilities, and ongoing expenses. This helps financiers assess your financial situation and determine your eligibility for the novated lease.
5. Finance Review and Credit Assessment
After your documents are submitted, the financier will assess your application. This typically includes checking your income, employment type, current financial obligations, and credit history. You don’t necessarily need a perfect credit score—some providers offer flexible assessment criteria or alternative approvals based on overall financial position.
If you’re concerned about your credit rating, some lenders can run a soft check or pre-assessment to give you confidence before fully applying.
6. Finalise Lease Agreement
Once approved, the novated lease agreement is prepared. This document outlines the lease terms—how long it runs, your monthly payments, and what’s included in the package. You’ll sign this digitally, and your employer will receive final documentation confirming their role in processing salary deductions.
You’ll also be able to confirm inclusions at this stage, such as fuel, registration, servicing, insurance, roadside assistance, and more.
7. Take Delivery and Start Salary Packaging
Once all agreements are signed, your car is delivered—either directly to you or ready for pickup at the dealership. From here, your employer will begin making pre-tax lease deductions from your salary. These payments usually include not just the car itself, but all of your bundled running costs.
Why a Novated Lease Application might be declined?
It’s not common, but a novated lease application can be declined. Here are some of the main reasons:
- Incomplete documentation
- Poor credit history or low credit score
- Unstable employment or insufficient income
- Undisclosed debts or over-committed finances
To reduce the risk of rejection, ensure all documents are accurate and complete. Speak with our consultants if you’re unsure about any part of your application—we’re here to help.
What to Do If Declined:
- Ask the lender for specific reasons (they must disclose)
- Consider a cheaper vehicle or shorter lease term
- Wait 3-6 months to improve your financial position
- Our Success Rate: 92% of declined applications we review find a solution
Can You Lease a Used Car or Your Current Vehicle?
Yes. You can lease a used car that meets the lease provider’s criteria typically under eight years old and in good mechanical condition. A vehicle inspection and full service history may be required.
You can also lease a car you already own using a “sale and lease-back” model. This lets you unlock the benefits of salary packaging while continuing to drive the vehicle you know and trust.
Why Choose One Car Group?
- Digital, fast, and paperless application system
- Pre‑approval assessments with no credit impact
- Special support for bad-credit or complex employment situations
- Flexible vehicle options: new, used, and current car leasing
- Simple bundled payments—no unexpected costs
- Transparent fees and tailored estimates on all packages
How One Car Group Simplifies the Process?
Applying for a novated lease doesn’t have to be overwhelming. At One Car Group, our consultants guide you through every step of the process, ensuring it’s simple and hassle-free.
1. Step-by-Step Guidance from Our Consultants
Our team will help you gather the required documents, fill out forms, and navigate the approval process.
2. Ensuring a Hassle-Free Application Experience
We’re here to make the application process straightforward, giving you peace of mind and confidence in securing your novated lease.
Commonly Asked Questions
1. Can I apply for a novated lease if I have bad credit?
Yes, having bad credit doesn’t automatically disqualify you. Some finance providers offer options for individuals with less-than-perfect credit. They may consider other factors like your current income, job stability, and existing debt levels. A pre-assessment can help you understand your chances without impacting your credit score.
2. Do I need to be working full-time to qualify for a novated lease?
While full-time employment makes approval easier, it’s not the only pathway. Part-time and contract workers can also qualify, provided their employer supports salary packaging and their income is stable. Each application is assessed on its individual merits, including job type and tenure.
3. Can I lease the car I already own?
In many cases, yes. This is called a “sale and lease-back” arrangement. You sell your car to the lease provider, then lease it back via salary packaging. It’s a great way to unlock tax benefits even if you’ve already purchased a vehicle outright.
4. What if my employer doesn’t offer salary packaging?
If your employer doesn’t currently offer salary packaging, they’ll need to set up a simple agreement with a salary packaging provider. Many employers are open to offering it once they understand the benefits to their staff—our team can help them with the setup process.
5. Is there a minimum income required to apply for a novated lease?
There’s no official minimum income, but lenders typically assess whether your salary can comfortably support lease repayments alongside your other expenses. A general guideline is that your lease payments shouldn’t exceed a set percentage of your take-home pay.
6. Do I get to keep the car at the end of the lease?
At the end of the lease, you generally have three options: pay the residual value and keep the car, refinance the residual, or return the vehicle. If you love your car and want to own it, buying it out at the lease end is a popular choice.
7. Are novated lease payments fixed or can they change?
Lease payments are usually fixed for the duration of your agreement, giving you predictable monthly budgeting. However, if your package includes variable expenses like fuel or insurance, these components may be adjusted annually based on actual usage or provider rates.
8. How does novated leasing compare to a car loan?
Unlike a car loan, a novated lease bundles running costs like rego, servicing, and insurance into one payment—and it’s deducted from your pre-tax salary. This means you could pay less overall and save on income tax and GST. It also simplifies car ownership with fewer bills to manage. Learn more why novated lease is better than car loan
Final Takeaways
Before submitting your novated lease application, make sure your documents are in order and your financial details are clear. If you’ve faced issues before or just want expert help, our team is here to guide you. Get in touch today or call 1300 616 993.
