Why a novated lease works for public sector employees
Novated leasing works best with a stable salary, packaging through your employer, and regular driving, which describes a great many public sector 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 Public sector
Almost all government departments, agencies and public authorities offer salary packaging, at every level of government. That is all you need to novate a car. We can help you confirm what your employer 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 public servants get a novated lease?
Yes. Most public sector employers offer salary packaging, so public servants at federal, state and local level can package a novated lease and pay for a car from pre-tax salary.
Is a novated lease good for public sector workers?
It suits a steady salary and regular driving, which fits many public sector roles. You get the pre-tax saving, the GST off the car and running costs, and one predictable payment.
Do public sector employees get the EV exemption?
Yes. The EV FBT exemption is federal and applies regardless of employer.