While Novated leasing is a new concept to you...

It's not a newly discovered tax loophole, its been a method of paying for a car for over 30 years.

Don't feel too bad, its only in the last 15+ years that it has become a method used outside of the ATO and the Public Benevolent Institutions (hospitals etc).
Small and medium employers have been the harder area to get educated, but now you're here so it won't be long till your employer catchs up .

The good... and the bad...
P.s. If you don't normally don't claim your vehicle as a tax deduction, then a novated lease should definitely be a win for you!

Good

• Vehicle does not have to be used for any business related driving at all.
• There is no minimum kilometers per year you have to drive.
• You make all the choices about the car to buy and included options and accessories.
• No change to your day to day driving, now all your car expenses are pushed through the novated lease budget.
• Your employer picks up the GST and that's 10% before savings on PAYG.
• Savings are seen every time you get paid.
• Novated leases cars have a history of better servicing and maintenance.
• Because its budgeted there's less stress, no surprise bill like rego and insurance.
• Whatever is left in the budget at the end goes back to you when reconciled.

Bad (not bad as scary, important things to consider)

• If the budget at the end is in arrears, you have pay that back.
• A novated lease isn't magic and isn't the best method for everyone.
• Interest rates are not the same as a home loan, but the whole rental is used as tax deduction.
• Yes, there is FBT to pay, but if the novated lease shows a saving, the FBT impact has been taken into account.
• Yes, there is a balloon (residual) to be paid at the end, but without one, you can't have a novated lease.
• If it has more than 9 seats or can carry over a tonne, it cant be novated lease.
• No, not every employer understands that offering employees does not cost them anything.
• Yes, you do have to be employed to take advantage of novated leasing.