The Benefit of Novated Leasing for Your Employees

Most employee benefits get a nod of appreciation and then get forgotten. Novated leasing gets used every single day: at the fuel pump, in the school pick-up line, on the drive home. That's exactly why it does more for retention than almost anything else you could offer without touching your budget.

A novated lease lets your employees pay for a car and its running costs, think fuel, servicing, tyres and insurance, out of a mix of pre-tax and post-tax salary, all bundled into one simple payment. No juggling five different direct debits. Add in GST savings on the car and its running costs, plus access to Leaselab's national dealer network for fleet pricing, and it's easy to see why employees who discover novated leasing rarely go back to buying a car the old way.

Here's the part that should matter most to you: a 2023 Roy Morgan industry survey found employees with a novated lease are 28% less likely to leave their employer. In a market where good people are hard to keep, that's not a small number, it's a genuine retention lever, and one you can offer without increasing anyone's salary or your own costs. Offering novated leasing also tells your team something bigger: that you're willing to make their money go further, not just talk about wellbeing in a values statement. It's the kind of benefit that consistently appears as a highlight in staff satisfaction surveys.

This is the detail employers are always surprised by. Novated leasing is a cost-neutral program for your business. The finance agreement sits with the employee, not you. Your only role is facilitating payroll deductions, Leaselab handles everything else: the paperwork, the compliance, and the day-to-day questions your employees would otherwise be bringing to HR. Plus, you'll benefit from payroll tax savings, which further supports the cost-neutral nature of the program.

Every business gets a dedicated point of contact, so you're never guessing who to call. Behind the scenes, our Employer Portal automates the payroll side, and our national dealer network means your employees get pricing they wouldn't get walking into a dealership alone.

The businesses that get the most out of this benefit are the ones who make sure their people actually know it exists. That's where we come in. Ask your Account Manager about booking a free onsite education day, we'll come to your workplace and walk your team through exactly how novated leasing works, no jargon, no sales pitch. We can also send through printed education collateral for your break room, intranet or induction pack. Reach out to your Account Manager to get something moving.