The cost-of-living squeeze is real. But here’s a move most Australians haven’t considered yet.
You know that feeling when the scoreboard’s ticking over and you realise you’ve got to make a wiser play to win the game? That’s where most Australians are right now. Rent’s climbing. Interest rates bite hard. Everyday expenses like groceries and utilities keep rising — and your car (which used to just be a car) is now costing hundreds each month in repayments, fuel, maintenance, and insurance.
Here’s the thing: there’s a game-changing strategy sitting there that not everybody talks about.
What Your Car is Really Costing You
Let’s be real. If you’ve financed a car the traditional way, you’re probably looking at:
- Monthly loan repayments (100% on your take-home pay)
- Fuel costs (let’s not even talk about the current petrol prices)
- Maintenance and servicing (breakdowns always hit when you can’t afford them)
- Insurance (and you have to have it)
- Registration (annually, clockwork)
Add it up. For most working Australians, a car is eating up $400 – 800 a month. For someone earning $80K, that’s a significant chunk of your living budget. Money that could go towards the life you want to live.
And if you’re thinking about switching to electric? The upfront cost is intimidating. Most people just stay locked in the petrol cycle because the alternative feels impossible.
The Play That Changes the Game
Enter: Paywise Novated Leasing.
If you haven’t heard of it, don’t worry. A lot of Australian’s don’t know this is an option – which is precisely why more people aren’t using it to free up cash.
A Paywise Novated Lease is a three-way agreement between you, your employer, and Paywise, Your employer makes your car payments directly from your pre-tax salary. This matters. A lot.
Here’s why it wins:
- Your payments come partly from your pre-tax income (fully on eligible electric vehicles)– which means you pay less tax overall. That’s not dodgy accounting. That’s how the tax system works for salaried employees.
- Everything’s bundled in — car payment, fuel/charging, maintenance, tyres, insurance. One regular payment. Predictable. Done.
- No surprises — because it’s all fixed, you know exactly what you’re paying. No emergency $2,000 engine repairs at 3am.
- You can drive electric or stay with petrol — your choice. EV? Petrol? Diesel? Plug-in hybrid? They’re all on the table.
The result? Many people save between $150–$400 per month depending on their salary and which car they choose. For a family juggling a mortgage, kids, and the cost-of-living crisis, that’s real money.
The Numbers Don’t Lie
Let’s look at a real example:
Current setup (traditional loan):
- $60,000 car financed over 5 years @ typical rates
- Monthly loan payment: ~$1,100
- Add fuel, servicing, insurance, rego: ~$600/month
- Total monthly outlay: ~$1,700
Novated lease (same car, same term):
- All-inclusive weekly payment from pre-tax salary: ~$320/week
- Total monthly outlay: ~$1,280
- Plus: Tax savings of $150–200/month
- Real-world saving: $250–370/month
Over five years, that’s $15,000–$22,000. That buys you a lot of life. Travel. Breathing room. A holiday without the guilt.
It’s Wise. It’s Not Complicated. It’s Already There.
The thing about novated leasing is it’s not new, it’s been around for decades. Over 400,000 Australians are already doing it.
The people who use it? They usually fall into one category: they did the maths and realised it was a no-brainer.
What’s Holding You Back?
If you’ve got a car on a traditional loan right now, the biggest hurdle is usually this: “Will my employer even allow it?”
Spoiler alert: Most do. If you’re salaried, you likely can. Government workers, corporate teams, education, healthcare, charities – it’s everywhere. Even smaller employers are increasingly open to it because it’s straightforward admin for them.
The second hurdle: “What if I want to drive electric?”
Even better news. EV prices have come down. And when you factor in the price of petrol, servicing costs (EVs have way fewer moving parts), and the total cost over the lease term – electric becomes genuinely cheaper to own.
The Win-Win Play
Here’s what we’re seeing: Australians who switch from a traditional car loan to a novated lease don’t just save money. They get:
- Predictability — one payment, everything included
- Flexibility – new car every few years, no depreciation risk
- Peace of mind – no unexpected breakdowns at midnight
- Choice – go electric or stay with what you know
- Real savings – hundreds every month that stay in your pocket
And that’s money you can actually use. Debt reduction. Kids’ school fees. A weekend away without sweating it. Grocery shopping without doing mental maths at the checkout.
How to Start
If you’re with an employer that offers salary packaging, the next step is simple:
- Find out if your employers in most are, but ask
- Work out the numbers takes 2 minutes with a simple calculator
- Pick your car: new, used, electric, whatever works
- Sit down and compare: your current monthly costs vs. the novated lease cost
Then make the call.
You don’t need a degree in finance. You don’t need to take a risk. You just need to do the maths the same way you’d strategize a game.
The Bigger Picture
This isn’t about fancy money moves or tax dodges. It’s about using the system that’s already there, the one most Australians don’t even know about – to free up real money.
The cost of living is punchy right now. Every dollar counts. If you can move $250–$400 from “car payments” into “actually living,” that’s worth 20 minutes of research.
Calculate Your Savings. Enter to Win.
Want to see how much you could save and go in the draw to win an ultimate Round 1 NBL experience!
Head to paywise.com.au/nbl and use the Paywise Novated Lease calculator. It takes around 90 seconds, and you’ll see exactly how much you could save per pay!
To enter:
- Complete the calculation
- Choose “Request Discounted Quote”
- Enter your details
- Enter “Win with Paywise” in the comments field
- You’ll automatically be in the draw to Win an NBL Experience! T&C’s Apply