Why a novated lease works for Commonwealth and APS employees
Novated leasing suits a stable salary and regular driving, which fits most Commonwealth and APS roles.
- 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 Federal government
Commonwealth departments and APS agencies offer salary packaging, which is all you need to novate a car. We can help you confirm what your agency offers.
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 Commonwealth and APS employees get a novated lease?
Yes. Federal departments and agencies offer salary packaging, so Commonwealth and APS employees can package a novated lease and pay for a car from pre-tax salary.
Does it matter which department I work for?
No. The tax treatment is national, so what matters is that your agency can deduct the lease from your salary, which almost all Commonwealth payrolls already do.
Do federal employees get the EV FBT exemption?
Yes. The EV exemption is federal, so an eligible electric car is FBT exempt for you the same as anyone.