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Novated leasing

Introduction

Eligible staff can take out a novated lease on a vehicle of their choice, as part of their salary packages.  NLC manages the university's novated lease program.

Salary Packaging

Salary packaging is a term used to describe a form of financial arrangement between Monash University and you (regardless of whether you earn 'wages' or 'salary'), which allows you to take your remuneration in a form other than take home pay. 

Salary packaging refers to an arrangement whereby you seek to reduce your gross income and in exchange, receive certain benefits from Monash University.  Because of the application of Australian tax legislation, this can be an effective way to structure your remuneration.

Leasing represents a significant financial commitment by you and involves some risks that you must understand before entering into a leasing arrangement.  Monash University strongly recommends you seek independent financial advice before entering into a novated lease arrangement.

How a novated lease works:

A novated lease is a variation to a standard finance lease.  Instead of you entering into a lease directly with a bank, you enter into the same lease arrangement with a novated lease provider and then transfer the obligation of the lease repayments to Monash University.  Monash University then makes the lease payments to the novated lease provider on your behalf, whilst you remain an employee of the university.

A novated lease allows for the lease payments to be deducted from your salary in pre tax dollars.

In the event that you cease to be employed for whatever reason, Monash University's obligation to pay the lease stops and the obligation reverts back to you.

By entering into a novated lease, you can lease any vehicle of your choice and enjoy the full tax benefits of a "Monash University car".

Eligibility

To be eligible to undertake a novated lease at Monash University, you must hold a tenured appointment or a fixed term appointment of at least three years.

Staff who hold a contract of employment of less than three years duration may be entitled to undertake a novated lease where the term of the novated lease is less than the (remaining) duration of the staff member's contract of employment. If you have less than one year remaining on your contract you are not eligible to enter into a novated lease.

What does NLC do?

NLC manages the University's novated lease scheme. The company provides full fleet management services under a novated lease structure.  The services they provide to you include:

  • salary costing, incorporating FBT, maintenance & fuel allowance and lease costings
  • vehicle acquisition (new vehicles only) and disposal
  • novated lease funding
  • issuing of Fleet Cards
  • general consultancy

Who to call for more information?

Call Monash University's account managers at NLC to discuss your requirements.

Eligible employees can ask any questions about novation leasing and how they go about leasing a vehicle through their salary package.

E-mail:

Telephone: 03 8699 7008
Facsimile: 03 8699 7197

If you have any questions about your overall salary packaging arrangements at Monash University, contact Human Resources on 20400

Novated leasing process flowchart

Application Forms

To lodge an application, the following three forms need to be completed and faxed to NLC:

  1. Novation Lease Application
  2. Statement of Assets and Liabilities
  3. Credit Information Notice, Acknowledgment and Consent Form

Your NLC representative will inform you of any further information necessary, and will be your contact for all of your dealings with NLC.

Policy

FAQ

  • ask.monash (frequently asked questions & inquiries)