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Novated Leases

Novated Leases - are they right for you?

Novated Lease or Loan Finance - which is cheaper?

For most people, buying a car is the second biggest purchase they will make in their life. Like buying a house, it is important to consider all of your available financing options to determine which is the best option for your circumstances.


However, it should not be assumed that a Novated Lease will always be cheaper than a loan. There are a number of factors that could affect the outcome for you when comparing a Novated Lease with a loan. If these factors are not considered then a Novated Lease may not result in the savings that you expect and could actually end up costing you money.

The key factors that need to be considered when comparing a Novated Lease with different Loan Finance options include:

  • The purchase price of the car
  • Interest rate - e.g. low comparison rate dealer finance, mortgage equity finance
  • Loan deposit
  • Tax deduction for work related car expenses
  • Operating costs - actual v estimated
  • Other taxable income or losses - e.g. rental property income/loss
  • Other Salary Packaged amounts - e.g. Superannuation

The salary packing industry is not directly regulated and there are no standards in relation to the disclosures that are made in Novated Lease quotations. All Novated Lease quotations only compare a finance lease with a Novated Lease and do not allow you to compare all of your financing options. The Car Finance Comparison Tool is currently the only tool in the market that considers all of the factors outlined above so that you can be fully informed in relation to all of your car financing options.

Be fully informed about all your financing options

Our Services - Car Finance Comparison Tool

The Car Finance Comparison Tool provides you with an independent and unbiased comparison of your Novated Lease quote with one or more loan finance options. You will be provided with a 1 page summary report that will include the following:

  • Your 2 cheapest financing options based on both your salary income and your taxable income
  • The annual savings and total savings over the finance term between your 2 cheapest finance options and your Novated Lease where this is not one of the 2 cheapest options
  • A comparison of the impact on your after-tax salary of all financing options including an explanation of the different outcomes between your salary income and your taxable income
  • A comparison of the details of all your financing options, including interest rates and total amount paid
  • The calculation of the estimated savings based on both your salary income and your taxable income

In addition to the above we will also provide you with feedback in relation to the reasonableness of all the costs included in your Novated Lease quotation.


Before we commence any work we will provide you with an initial no-obligation free telephone consultation to determine if the Car Financing Comparison Tool will be beneficial for you. During this consultation we will provide you with more details in relation to Novated Leases as well as how the Tool works and the information required.


If the Tool is considered to be beneficial for you and you would like to proceed then we can provide you with this service either for a 2 week period or a 4 week period. During this time we will provide you with updated reports as you provide details in relation to the various financing options that you would like to compare. We will also discuss the details and outcomes with you throughout the process. Please note that we will not advise you on which option to choose as ultimately this will be your decision.

Our Experience

Shawcross Consulting is a boutique taxation advisory business with over 34 years of experience in the taxation profession, including 17 years with the ATO. We specialise in employment taxes and have been advising employers and employees in relation to Fringe Benefits Tax, Salary Packaging and Novated Leases for more than 20 years.


We do not sell cars, Novated Leases or any other kind of vehicle finance. We are simply in the business of providing affordable advice and assistance to help you better understand your options and place you in a more informed position on how to finance the purchase of your car.

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Our Fees

Cars up to $57,581 (GST inclusive)

  • Initial consultation – no charge
  • 2 weeks support - $150 (inclusive of GST)
  • 4 weeks support - $250 (inclusive of GST)
  • Each additional week - $50 (inclusive of GST)

Cars over $57,581 (GST inclusive)

  • Initial consultation – no charge
  • 2 weeks support - $200 (inclusive of GST)
  • 4 weeks support - $350 (inclusive of GST)
  • Each additional week - $75 (inclusive of GST)

Sample Report

Understand the differences between your financing options

                  The following table provides a brief comparison of some of the key differences between a novated lease and a commercial loan.

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