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bZ4x Available on a Novated Lease
bZ4x Available on a Novated Lease

What is a Novated Lease?

Drive the Car You Want—Smarter

A novated lease is a simple, tax-effective way to own and run your car.
Instead of paying from your take-home pay, your employer makes lease payments on your behalf using a
mix of pre- and post-tax salary.

That means you could enjoy significant savings on the purchase price and everyday running costs.
Whether it’s a new car, a used car, or even your current one.

With a novated lease through TFM, you’ll also benefit from cashless motoring and access to exclusive discounts on finance, fuel,
servicing, tyres and more. It’s an easy, affordable way to drive without compromising your lifestyle.

Step 1
Novated Lease Lease set up

Lease set up

The employee chooses a car, and an agreement is set up between the employee, the employer and TFM.

Step 2
Payments Made by Your Employer

Payments Made by Your Employer

The employer makes payments to TFM from the employee’s salary.

Step 3
Employee saves

Employee saves

The employee gets the car they want, saving on tax and running costs including vehicle price, fuel, maintenance and tyre purchases.

Step 4
Cashless motoring

Cashless motoring

The employee enjoys the convenience of cashless motoring.
Contact New Town Toyota

What Is Included in a Novated Lease?

Upfront Costs:

·         Car price and accessories

·         Dealer delivery charges

·         First year registration and CTP insurance

·         Purchase stamp duty

·         Novated lease establishment fee

·         Personal Property Security registration fee

·         Luxury Car Tax (if applicable)

Running costs:

  • Fuel – via the TFM Fuel Card, accepted at most fuel providers Australia-wide
  • Servicing and maintenance – managed through TFM’s Repair Authorisation Centre
  • Tyre replacements
  • Registration renewals
  • CTP insurance
  • Comprehensive insurance (TFM-managed or reimbursed if third-party)
  • Roadside assistance (optional add-on)
  • Scheduled maintenance
  • Reimbursement for eligible vehicle-related expenses

​What's not included

• Tolls
• Fines
• Insurance excess

What are the Benefits of a Novated Lease?

Convenient cashless motoring

  • One easy payment: All your car costs—fuel, servicing, registration, insurance—can be bundled into a single payment directly from your salary. It’s budgeting made simple.
  • TFM Fuel Card: Fill up and go. No need to pay upfront or collect receipts.
  • Repairs and servicing, sorted: Everything is managed through our Repair Authorisation Centre—so you can keep moving without the paperwork.
  • Freedom to choose: Lease any make or model, new or used—including demonstrator vehicles. It doesn’t need to be a Toyota.
  • Job change? No stress: Take your lease with you or transfer it to your new employer.

Tax Savings

  • GST savings: Access input tax credits on the purchase price and eligible running costs.
  • Lower PAYG tax: Lease payments are deducted from your salary using a mix of pre-tax and post-tax income, reducing your taxable income.

Reduced purchase price and running costs

  • Ongoing savings: Enjoy discounted rates on fuel, servicing, tyres and maintenance—all managed for you.

Want to see a breakdown of all the costs involved, so you can see at a glance how much you could save when compared with a standard car loan?

Use the Toyota calculator HERE.

Why Choose New Town Toyota for Your Novated Lease?

At New Town Toyota, we don’t just offer novated leases—we support you every step of the way. Whether you’re a first-time salary packager or upgrading your current car, we make the process clear, personal and stress-free.

✔ Dedicated Novated Lease Specialist

Our in-house expert is here to guide you through every detail of your lease—from tailored quotes and employer requirements to vehicle selection and settlement. You’ll always speak to someone who understands your goals and can simplify the process.

✔ Access to the Full Toyota Range (and beyond)

Choose from the complete Toyota lineup including hybrid and electric models, or lease a demonstrator or pre-owned vehicle. We also support non-Toyota models from our selection Pre-Owned Vehicles under eligible arrangements.

✔ End-to-End Vehicle Support

As one of Australia’s top 20 Toyota dealers, we offer trusted servicing, finance, and trade-in support in one place. From choosing your car to keeping it in top shape, we’re with you for the road ahead.

✔ Proudly Local

Located in East Victoria Park, New Town Toyota is a family-owned dealership with a reputation for honest advice and long-term customer care.

Novated Lease Protection Insurance

Toyota Finance also offers novated lease protection insurance as an optional extra. That way, if you aren’t able to work, your lease will continue to be paid for up to six months, with a hand-back option if you don’t gain employment within that time.

  • Q What is a novated Lease?

    A Novated Lease is where your car lease is paid for by your employer through a combination of pre-tax and post-tax salary deductions. With novated leasing, you can drive the car of your choice without compromising on lifestyle.

  • Q What happens at the end of a Novated Lease?

    You can either:

    • Extend your lease contract, or
    • Purchase your vehicle outright. TFM will contact you before the lease ends to guide you through your options.
  • Q Can you salary sacrifice a car you already own?

    Yes. You can do a sale and leaseback—TFM buys your existing car at market value and leases it back to you with all the benefits of a novated lease.

  • Q Can you modify a car on a Novated Lease?

    Not without TFM’s consent. You must not:

    • Alter or add to the car
    • Install anything on or in the car
    • All modifications must be done by an Authorised Service Centre.
  • Q Can someone else purchase my leased vehicle?

    No. You cannot sell, lend, or transfer possession of your leased vehicle. See TFM’s Terms and Conditions for details.

  • Q Do you pay stamp duty on a Novated Lease?

    Yes. Stamp duty is included in the upfront costs of your novated lease and detailed in your quote.

  • Q What is a residual value?

    It’s the estimated value of the car at lease end. This value is agreed upfront and helps determine your monthly lease payments.

  • Q How do I pay for the running costs of the car?

    TFM manages servicing and mechanical costs through a pre-authorisation system. For fuel, oil, or car wash expenses, use your TFM Motopass Fuel Card—accepted at most petrol stations nationwide.

  • Q Am I eligible for a Novated Lease?

    Ask your employer about their car salary packaging policy. If they don’t yet offer it, TFM can help set it up.

  • Q What if I change jobs during my lease?

    If your new employer agrees to novate the lease, you can continue as usual. If not, your lease transfers to you personally and you’ll make payments from your after-tax income—or choose to pay it out.

  • Q What costs are included in a novated lease?

    Your lease covers more than just the car. It typically includes:

    • The car price and accessories
    • Dealer delivery charges
    • Registration and CTP
    • Stamp duty
    • Servicing, maintenance, tyres
    • Fuel (via TFM Fuel Card)
    • Insurance (optional)
    • Lease management fees
  • Q Can I use a deposit or trade-in to reduce the lease amount?

    No. Novated leases must finance the full vehicle price. Deposits and trade-ins can’t be used to reduce the financed amount.

  • Q How are lease payments deducted?

    Payments are made from your salary using a mix of pre-tax and post-tax deductions. This lowers your taxable income and provides potential GST and PAYG tax savings.

  • Q What is Fringe Benefits Tax (FBT) and how is it managed?

    FBT applies because you're receiving a benefit (a car) through your employment. TFM usually applies the Statutory Formula Method, where a set percentage is calculated based on the car’s value. Your employer can offset FBT by applying post-tax contributions from your salary (called the Employee Contribution Method or ECM).

  • Q Can I get a novated lease for a luxury vehicle?

    Yes—but keep in mind:

    • Luxury Car Tax (LCT) may apply if the car exceeds the ATO’s threshold
    • Luxury Vehicle Adjustment (LVA) rules apply, which may change how the lease is treated for tax purposes
  • Q What happens if I end my novated lease early?

    If you need to terminate early, contact TFM for a payout quote. Fees will apply and you'll be responsible for the remaining balance.

  • Q Can I monitor my lease activity and costs?

    Yes. TFM provides access to a self-service portal (novatedonline.com.au) where you can track your:

    • Lease balance
    • Running costs
    • Budget vs. actual spend
    • Insurance and rego details
  • Q How long can I lease a car for?

    TFM offers lease terms from 12 to 60 months. Residual values are based on ATO guidelines and vary depending on the term.

This information provided by Toyota Finance, a division of Toyota Finance Australia Limited ABN 48 002 435 181, Australian Credit Licence 392536 is of a general nature and for information only. Nothing on this website constitutes or should be considered to constitute legal, taxation or financial advice. Before making a decision about any of the products and services featured on this website, you should consult with your own independent legal, taxation and financial advisors, who can advise you about your personal circumstances.