Glossary

Novated Lease Handy Hint

If your employer doesn't offer novated leasing, we can talk to them on your behalf.

Glossary

Novated Lease

A novated lease allows a business to lease a vehicle on behalf of an employee. It is a three way agreement between an employer, an employee and Australian Fleet. The employer pays for the vehicle out of the employee's pre-tax salary. And the employee gets a new car to use whenever and wherever they want. A novated lease can also include all the operating costs of the vehicle.

Fleet Management

Fleet management is the management of a business' vehicles.

Operating Lease

An operating lease can be thought of as a rental, where the payments are fixed and Australian Fleet assumes the residual value risk of the vehicle.

Novated Lease Calculator

An easi calculator that estimates your monthly novated lease payments and how much money you can save.

CO2 Emissions

CO2 stands for carbon dioxide, which is a gas formed by the combustion of carbon and the respiration of living organisms. It is widely considered a greenhouse gas and CO2 emissions are where CO2 is released into the atmosphere.

Carbon Offset

A carbon offset is a monetary investment in a project that decreases greenhouse gas emissions.

GST

GST stands for Goods and Services Tax. In Australia it is a tax of 10% added onto most goods and services transactions.

Fringe Benefit Tax

Fringe Benefit Tax, or FBT, is a tax on the non-cash benefits an employee receives as a result of their employment.

Public Benevolent Institution

A public benevolent institution, or PBI, is a type of organisation that can receive tax deductible gifts and is involved in services that benefit the community.

Residual

The balloon payment that falls due at the end of a Novated Lease. Clients can refinance this amount to continue their lease or pay the full amount directly to Australian Fleet.

Payout Figure

If Novated Lease clients wish to leave their Novated Lease contract early for any reason, a payout figure will need to be obtained from Australian Fleet.

Australian Fleet confirms the payout figure according to how many payments are left in the lease.

Deed of Novation

A novation agreement is a legal document that transfers all financial obligations under the finance contract for the related vehicle from the employer over to the employee.

Salary Sacrifice

A salary sacrifice arrangement is also commonly referred to as salary packaging or total remuneration packaging. It is an arrangement between an employer and an employee, whereby the employee agrees to forgo part of their future entitlement to salary or wages in return for the employer providing them with benefits of a similar value.

Safety

Promoting awareness and education to help people place themselves in vehicles and situations where they are less likely to be exposed to danger.

General finance

Finance options include offer-to-hire, chattel mortgage, commercial hire purchase, and both secured and unsecured loans.