I have a Novated Lease with fuel cards for 2 major suppliers. I often buy fuel at independents because they're so much cheaper. I lodge my claims for reimbursement from the Novated Lease company but I'm reimbursed the amount paid, less GST. Why am I out of pocket for the GST when I have funds in the Lease to cover the full amount? The same happened with my claim for paying the Insurance but when I lodged a claim for Registration I got the full amount.
Hi @SW11112011,
In a novated lease arrangement, your employer typically handles GST obligations, not you as the employee. The finance company is generally liable for GST in novated lease arrangements.
For fuel and insurance expenses, the GST treatment depends on your specific novated lease structure and the arrangement between the finance company and your employer. Your employer can claim GST credits for running costs of the vehicle, as it's being leased for carrying on their business.
Whether GST savings are passed on to you depends on your specific salary packaging agreement terms. The difference in treatment between fuel/insurance (GST deducted) and registration (full reimbursement) suggests different handling within your lease arrangement.
We recommend checking with your finance company about the GST treatment, as they're responsible for GST compliance in these arrangements. You can also check with your employer about having GST refunded to you, as this depends on your agreement terms.
You can find more info about GST and vehicles purchased under novated leases on our website.
15 Apr 2026 · 4 min read time
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