Here we offer you with an overview of the 3 elements that make up a novated lease.

Under a deed of novation that entails a revocation in the original lease, the provide of the car is made directly by the finance company to you, even when your employee retains the obligation to guarantee the residual value.
Novated lease
Under a full or split full novation arrangement the finance business can claim a GST credit for the GST they paid on the purchase of the vehicle.

Under a novated lease arrangement, you take more than all or component in the lessee's rights and obligations under the lease. This transfer of rights and obligations is agreed to in a deed of novation in between you, the finance company and the lessee. The lessee is generally the employee, or an associate in the employee.

Under a split full novation arrangement, you are responsible for creating the lease payments but you're not responsible for guaranteeing the residual value in the car in the finish in the lease. Your employee retains this obligation.
Novated lease
Tax benefits, GST savings, convenience, plus much more! Discover ten fantastic factors why you should be thinking about a novated lease to finance your subsequent car.

The deed of novation usually contains a clause that transfers the lease obligations back to the lessee on termination in the lease or when the employee ceases employment with you. In the latter case, this enables the employee to enter into a new novated lease arrangement with another employer.