Frequently Asked Questions

Needing more information on Novated Leasing?

Needing more information on Novated Leasing? These most commonly asked questions and answers about Novated Leasing can help.

Before leasing

What is a Novated Lease?

A Novated Lease offers employees a simple and convenient way of including a vehicle in their salary package.

Finance and running costs are GST free and collected in part or wholly from an employees’ gross salary, reducing taxable income and optimising take home pay. They can also enjoy fleet discounts on vehicle purchase and running costs such as maintenance, tyres and fuel.

Employees also have the flexibility to choose a vehicle that suits their lifestyle and business needs and retain the vehicle if they change jobs.

What vehicle choice do I have?

You have complete flexibility with vehicle choice and it can be new, used or a luxury vehicle. Just simply select a vehicle that suits you and your lifestyle. ORIX can even purchase your current vehicle and lease it back to you.

Generally ORIX does not impose any restrictions on vehicle choice. However some vehicles may be ineligible for novation which includes commercial vehicles. Please contact an ORIX Novated Leasing Specialist for clarification on which models may not be novated.

During the lease

What happens to my credit application details?

ORIX handles personal information according to the Privacy Policy located on the ORIX website. You will also be asked to complete a Privacy Act – Disclosure Statement and Consent Form as part of your lease application. ORIX will use this to access personal information about you as part of the credit application process.

How will I find contact details for maintenance and repair providers?

You will receive an ORIX Novated Lease Driver’s Manual which lists national ORIX approved repairers for maintenance and other services, along with instructions on what to do in the event of an accident. Alternatively, the service locator on the ORIX website under Driver Support can provide contact details for services such as fuel, tyres and repairs.

End of lease

What happens when my lease term expires?

Before lease end, ORIX will contact you and provide a number of options including an option to extend the vehicle lease.

What residual value will apply?

When you have selected a vehicle ORIX will set the residual based on your lease term as per the safe harbour rates set by the ATO as listed below.

Terms Residual Value Range
 1 Year 65.63%
2 Years 56.25%
3 Years 46.88%
4 Years 37.50%
5 Years 28.13%

What happens to surplus in my budget?

Any surplus budget will be returned to your employer within 10 business days, who will then forward this onto you.