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2 Sept 2025

Hello,

I currently have a novated lease on a hybrid vehicle that qualifies for the FBT exemption. I’m employed by the Federal Government, and transferred from Services Austrailia to the Department of Finance recently I have now lost my FBT exemption on the Hybrid as they said I had a change of circumstances and the Department of finance use a different deed. Nothing has changed with my financier or my novated leasing company, but Smart Salary said I can no longer have the exemption and have added a post tax deduction. The financial impact is huge. This doesn't sound correct or within the spirit of the policy of the Discount Bill intent anyone have any thoughts on this. I thought being an member of the APS the benefit would be the same across departments.



125 views
1 replies
125 views
1 replies

All replies

NikkiATO(Community Moderator)Community Moderator
5 Sept 2025

Hi @BellaMillie,


With plug-in hybrid vehicles, your new employer wouldn’t be eligible for an FBT exemption. This is because every government department or agency is treated as its own employer for FBT purposes. It could be the reason your lease arrangement was fine at Services Australia but isn’t at Finance.


It might be worth chatting with your new employer to see if there are any other options to help.

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FBT exemption on hybrid lease – does it transfer between departments Smart Salary said NO | ATO Community