To access Novated Leasing the employer needs to offer salary sacrificing as part of their employment arrangements.
Then when the employee enters into a Novated Lease:
- The employer undertakes to make the monthly lease payments on behalf of the employee whilst employed with that business
- The lease payments are deducted from the employee’s pre-tax income
If at any point the employee leaves the business, the Novated Lease terminates. The responsibility for making the lease payments, reverts to the employee