Understanding Fuel Costs with a Novated Lease

Fuel prices are biting harder than ever – but if you’re filling up through a Paywise Novated Lease, the effective after-tax cost of fuel may be much lower than the retail pump price.

Because fuel is paid using pre‑tax salary and without GST, a Novated Lease could significantly reduce the effective cost of fuel.

Let’s break that down.

How Fuel Costs Are Treated Under a Novated Lease

With a novated lease:

Eligible employees may benefit from GST savings on fuel purchased through a Novated Lease arrangement.
Fuel costs can attract tax and GST benefits through a Novated Lease arrangement.

No discount apps. No queueing on cheap Tuesdays. No loyalty cards. Just potential tax and GST savings when you fill up.

Real Example Based on a $75,000 Salary and $2.40/L Fuel Cost

Without a Novated Lease – you pay: $2.40 per litre
With a Paywise Novated Lease – your real cost: $1.48

Example Effective Fuel Cost Difference: 92 cents per litre*

Example Annual Impact of a 92c Per Litre Difference

If you use 50 litres per week:

Weekly saving:

$0

Monthly saving:

$0

Annual saving:

$0

Could that potential saving pay for a holiday? Or a chunk off your mortgage? Or just less pressure week-to-week?
*Based on marginal tax rate of 30% plus Medicare Levy of 2% on Salary of $45,001 – $130,000. Outcomes will vary depending on your income and individual circumstances.

Fuel Benefits Are Only One Part of a Novated Lease

The savings we’ve highlighted here relate only to fuel – but with a Paywise Novated Lease, you can use your pre‑tax salary to cover all your car’s running costs.

That includes:

Finance payment
Registration
Insurance
Servicing
Tyres
Roadside assistance and more

So while saving 92 cents per litre is a huge win on its own, it’s actually just the start when it comes to a Novated Lease!

Eligible vehicle expenses can be included in your Novated Lease arrangement and may provide additional tax and GST benefits, depending on your circumstances.

Why Choose a Paywise Novated Lease?

With Paywise, you get:

Mate‑level care from our local team
Fastest response times imaginable
Hassle‑free salary packaging
The ability to package fuel, rego, servicing, tyres, insurance, and more

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Novated Lease with Paywise

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Potential benefits, savings and tax outcomes will vary depending on individual circumstances. Terms, conditions, eligibility criteria and fees and charges apply.