Why a novated lease works for teachers and school staff
A novated lease suits a stable salary and regular driving, which describes most teaching roles, including the daily run to school.
- 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 Teachers
Most state education departments and many Catholic and independent schools offer salary packaging, which is all you need to novate a car. If you are not sure whether yours does, we can help you check with payroll.
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 teachers get a novated lease?
Yes. State education departments and most schools offer salary packaging, so teachers and school staff can package a novated lease and pay for a car from pre-tax salary.
Is a novated lease worth it for a teacher?
For a steady salary and regular driving, usually yes: the pre-tax saving, the GST off the car and running costs, and one predictable payment. An eligible EV is the strongest case. The calculator shows your real figure.
Do teachers get the EV FBT exemption?
Yes. The EV exemption is federal and applies regardless of employer, so a teacher leasing an eligible electric car gets the same saving.