Why a novated lease works for ADF members and Defence employees
A novated lease works best with a stable salary, packaging through your employer, and regular driving. Defence roles fit that, which is why so many members use one.
- Paid from your pre-tax salary, lowering your taxable income
- No GST on the car, up to the $6,353 cap, or on the running costs
- Insurance, servicing, tyres, rego and fuel or charging bundled in
- On an eligible electric vehicle, no FBT either
Salary packaging for Defence
Defence is a government employer and salary packaging is well established across the ADF and the department, which is all you need to novate a car. We can help you confirm your options.
Electric cars and the FBT exemption
Eligible electric vehicles priced under the $91,661 fuel-efficient luxury car tax threshold are exempt from Fringe Benefits Tax (FBT) for the 2026-27 financial year, which usually makes them the strongest novated lease. Because the exemption is federal, it applies to government employees the same as everyone else. See the EV novated lease page for the detail.
Common questions
Can ADF members get a novated lease?
Yes. Defence offers salary packaging, which is all you need. Both serving ADF members and Defence civilians can package a novated lease and pay for a car from pre-tax salary.
What happens if I am posted or deployed?
The lease is fully novated and travels with you. Your running-cost budget can be adjusted if your driving changes, and CarBon manages the lease through its life, so a posting is not a headache.
Do Defence employees get the EV exemption?
Yes. The EV FBT exemption is federal and applies regardless of employer, so a Defence member leasing an eligible electric car gets the same large saving.