If i have a novated lease with my employer, does the Exempt use of eligible vehicles apply still.
Do i need to still pay the employee contribution if i meet the requirements?
746 views
746 views2 replies
2 replies
746 views
2 replies
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
Hi @NWIT
It's possible that a car can be exempt from FBT for the employer. The leased car is treated as a car fringe benefit. Your employer works out the taxable value of the benefit and pays FBT, taking into account any exemptions, like what you've mentioned.
Your novated lease agreement is with your employer so you'd need to check the T's & C's. We have some info about car leasing and FBT on our website.
All replies
Clarification. There is a list of eligible vehicles and uses provided by the ATO.
does this list apply to novated lease vehicles?
i.e dual cab Ute load capacity greater the passenger capacity and used for to and from work limited personal use.
Hi @NWIT
It's possible that a car can be exempt from FBT for the employer. The leased car is treated as a car fringe benefit. Your employer works out the taxable value of the benefit and pays FBT, taking into account any exemptions, like what you've mentioned.
Your novated lease agreement is with your employer so you'd need to check the T's & C's. We have some info about car leasing and FBT on our website.
Featured articles
15 Apr 2026 · 8 min read time
6 Feb 2026 · 4 min read time
15 Apr 2026 · 4 min read time