Frequently asked questions

Toyota Finance is part of the Toyota group of companies, so trust is embedded in our DNA. We believe strongly in being open and honest with our customers and making sure they get the best deal on their novated lease.

A novated lease lets you take advantage of a range of tax benefits including:

  • GST credits (input tax credit), on the initial vehicle purchase (capped in accordance with the Luxury Car Limit)
  • GST credits on vehicle running costs including maintenance, tyres and fuel
  • Fringe Benefits Tax (FBT), which can lower your tax liability when you package all or a significant amount of the vehicle lease and running costs through your pre-tax (gross) salary.

We don't believe in disguising our rates, as we have nothing to hide. Unlike other novated lease providers, all our rates, fees and charges are fully disclosed on our quotes and on our comprehensive online calculators. That means it's easy for you to see clearly and compare, so you know you are getting the best deal on your novated lease.

Unlike many of our competitors, we have access to our own funding. What that means for you is that we can offer some of the lowest rates in the market. And we're continually monitoring the market to make sure you get the most competitive deal.

Rest assured your novated lease provider Toyota Finance is strong and stable. We have more than 30 years' experience in financial services, and a AA- credit rating for medium-term notes issued by Toyota Finance Australia Limited from Standard and Poor's. We aren't going anywhere.

If you get your novated lease through us you can automatically access instant savings through our buying power.

You can enjoy discounts on:

  • The purchase price of your car
  • Fuel

Negotiated parts and labour rates on:

  • Maintenance
  • Servicing
  • Tyres

Our dedicated in-house team provides exceptional, personalised customer service.

A single consultant will manage the process from start to finish, assisting with all aspects of the lease.

From car selection, lease terms and kilometres, through to FBT and budget options, you can be assured we’ll be there to help you every step of the way.

There are a number of upfront and running costs you can include in a novated lease from Toyota Finance.

Upfront costs:

  • Vehicle price and accessories
  • Dealer delivery charges
  • First year registration and CTP insurance
  • Purchase stamp duty
  • Novated lease establishment fee
  • Personal Property Security registration fee
  • Luxury Car Tax (if applicable)

Running costs:

  • Mechanical repairs, maintenance and servicing
  • Replacement tyres
  • Fuel
  • Roadside assistance
  • Comprehensive insurance
  • Registration/CTP renewals

Toyota Finance also offers novated lease protection insurance as an optional extra. That way, if you aren’t able to work, your lease will continue to be paid for up to six months, with a hand-back option if you don’t gain employment within that time.

Not included:

  • Tolls
  • Fines
  • Insurance excess

Choose from a range of lease terms from 12 to 60 months. The most popular lease term is 48 months.

We have a team of experts on hand to make setting up your novated lease easy.

Start by choosing the car you want and making sure your employer is on board (we can help with this). Then decide on a term that suits you – anywhere from 12 to 60 months is a typical arrangement.

We will set up a three-way novated lease agreement between Toyota Finance, you and your employer. Then you can simply enjoy the benefits while your employer takes care of the payments through salary deductions.

To get a quote, phone us on 1300 888 870 or email us at novated@toyota.com.au

Want to see how much it would cost? Check our handy Calculator for an estimate.

A novated lease with Toyota Finance is one of the most convenient, simple and cost-effective ways to drive the car you want.

Take advantage of:

  • Buying power that could help you save on the purchase price
  • Discounts on fuel and negotiated parts and labour rates for maintenance, servicing and tyres
  • Transparency across rates, fees and charges
  • The best interest rates in the market
  • Quality service from novated lease experts
  • A car that suits your lifestyle
  • A convenient Toyota Finance Fuel Card

You can save and enjoy discounts on:

  • The purchase price of your car
  • Fuel

Negotiated parts and labour rates using Toyota Finance buying power for:

  • Maintenance
  • Servicing
  • Tyres

Enjoy benefits of a novated lease

  • Save on tax through pre- and post-tax salary deductions
  • Forget about keeping receipts or logbooks
  • Budget easily with your car expenses covered in one monthly payment
  • Enjoy the convenience of cashless motoring
  • Take advantage of Toyota Finance-negotiated discounts on everything from fuel to maintenance
  • Choose the vehicle you want to drive
  • At the end of your lease, take advantage of any surplus between the market value and the residual value of your vehicle (plus GST – conditions apply).

At Toyota Finance, we believe our interest rates are the best in the market, so you can be assured you’re getting the best deal. And unlike some other providers, we’ll happily tell you exactly what the interest rate is on your novated lease.

Like any other financier, it is necessary for Toyota Finance to have account fees and charges.

We believe in being transparent and so we disclose all of the fees and charges associated with novated leasing. We believe our fees and charges are fair and competitive relative to other finance providers.

Our fees include an establishment fee and ongoing monthly management fees. Variation fees and reimbursement fees may apply if there are excess requests for changes to your agreement.

Novated lease finance always contains a residual value. This is the value of the car at the end of the lease term and it is agreed when you take out a novated lease. The residual value is used to calculate the monthly lease payment.

The residual value is set by the ATO and is calculated as a percentage of the car's original value. When you choose your car, Toyota Finance will recommend a residual value that takes into account the make, model and estimated usage, and this value is incorporated into your novated finance lease.

We’ll do our best to ensure this residual is accurate so you’re not left out of pocket, as the employee is responsible for any shortfall.

The minimum residual value is set by the ATO, as shown below.

Lease term residual value

  • 12 months 65.63%
  • 24 months 56.25%
  • 36 months 46.88%
  • 48 months 37.50%
  • 60 months 28.13%

By novating a car, your lease costs are salary packaged through a combination of pre-tax and post-tax deductions, meaning your taxable income is reduced. However, because you benefit from this arrangement, it is deemed a ‘fringe benefit’ under taxation law.

As a result, two types of tax apply: Income Tax for your cash salary and fringe benefits tax (FBT) for your car.

There are two ways to calculate FBT on vehicles: The Statutory Method and the Operating Cost Method.

The Statutory Method uses the value of your car as a basis for calculating the taxable value. It doesn’t take into account private vs. business usage, and the amount of FBT doesn’t change. This method is popular for novated leases, as many employees use their car for little or no business use.

Under the Statutory Method, your employer can offset your FBT liability by making after-tax contributions towards the vehicle’s running costs, equivalent to the FBT liability. This is called the Employee Contribution Method. It means an amount will be set up and deducted from both your pre-tax and post-tax income to offset the FBT liability. This has greater tax benefits if your salary is below $180,000.

The Operating Cost Method calculates the FBT liability using the total costs of operating the car over the year. FBT is then payable on the portion of private use. This means the driver will need a logbook to work out the private vs business use. This method is suited to employees who use the car predominantly for business as it can work out cheaper than the Statutory Method.

Your FBT status may differ if you work in specific industry sectors such as not for profit and medical. If you are unsure of your FBT status, please contact us to clarify.

There are some key things to consider when you are taking out a novated lease

  • What type of car do you want? (Remember, Toyota Finance finances all cars, not just Toyotas).
  • Check out your employer’s policy on novated leasing
  • Decide how much you can afford 
  • Think about car options and accessories
  • Estimate how many kilometres you’ll travel each year (private and business)
  • Decide on a lease term that suits you
  • Consider independent financial advice

Getting an estimate is easy, you can calculate your novated lease now using our comprehensive calculator or if you would prefer to chat to an expert, call us direct on call us direct on 1300 888 870.

Our comprehensive calculator allows you to compare a novated lease against a car loan and cash and gives you an idea of the savings you can enjoy with a novated lease.

Leave your money in the bank earning interest!


The application process with Toyota Finance is simple. From start to finish it takes around five working days.

Here’s the detail:

  1. Contact us for an exact quote on 1300 888 870
  2. Review your employer’s car policy before choosing your car, if your employer doesn't have an agreement with us, no problem. We can advise you on how to get one put in place.
  3. Toyota Finance presents you with a quote and salary analysis, including the finance application, we can email this to you directly
  4. You accept the quote and submit your finance application
  5. Subject to credit approval your finance is approved and the lease documentation is prepared
  6. You and your employer sign the lease documents
  7. The car is delivered to you
  8. Your employer is sent a notification to commence salary deductions

Let us take the hassle out of managing your car running costs and save you precious time and money with Toyota Finance's range of management services. Our management services cover all those associated with running your car.

Toyota Finance will set a budget for each running cost at the start of your lease, based on the type of car you have, the term of the lease and the kilometre allowance. You can adjust any of the budgeted items throughout your lease.

At the end of the lease, it's all reconciled and you can pay any shortfall that might arise or will be refunded via your employer if there is a surplus.

Since a portion of your monthly payment goes towards these budgeted items, you won't be stung by periodic and unexpected expenses like a set of replacement tyres – it will all be taken care of through your allocated budget.

Enjoy the convenience of cashless motoring with a Motorpass fuel card. Accepted at around 98% of petrol stations across Australia, it's a smart way to buy fuel, oil or carwash services.

You'll also receive discounts on the pump price, plus you can take advantage of Woolworths supermarket dockets at selected sites for an even bigger discount.

Toyota Finance has an approved repairer network to make sure you get the best result every time.

You can pay upfront but we recommend you use our pre-authorisation and payment service. Just let your repairer know your car is managed by Toyota Finance and they'll call us to authorise the work before they start. That means we can also negotiate the best deal on your behalf, as well as enforce and extend any warranty claims, make sure your car isn't 'over-serviced' and ensure like-for-like manufacturer-specified parts are used.

To find an approved repairer in your area, simply call our Repair Authorisation Centre on 1300 888 871.

Toyota Finance has an approved tyre replacement network to make sure you get the best result every time.

This includes big name brands such as Bob Jane, Beaurepaires, Bridgestone, Goodyear and K-Mart Tyre & Auto. You can pay upfront but we recommend you use our pre-authorisation and payment service. Just let your repairer know your car is managed by Toyota Finance and they'll call us to authorise the replacement before they start work. That means we can also negotiate the best deal on your behalf.

To find an approved tyre dealer in your area, simply call our Repair Authorisation Centre on 1300 888 871.

Forget the run-around on paperwork. We handle all the CTP, comprehensive insurance and registration requirements for your car.

You can rest assured your car will be registered on time and that all inspections are completed and comply with the relevant authorities. Because the car is registered and insured in your name, you'll receive the renewal notice from the relevant providers – all you have to do is forward them to Toyota Finance for payment.

We'll also keep you updated with regular reminders, and you can easily check on the status of your car via our intuitive self-service online portal.

Toyota Finance ensures complete peace of mind when it comes to insurance, whether it's protecting your car or your job.

Your car must be comprehensively insured for the full insurable value at all times, with Toyota Finance noted as an interested party (as financier) on the policy. Whether you choose Toyota Insurance or another provider, Toyota Finance provides a renewal and reminder service.

For extra security, Toyota Finance's Novated Lease Protection Insurance protects you in the event of retrenchment or redundancy by providing payment protection for up to 6 months, car return at no cost after 3 months of unemployment and cover in the event of accidental death. Conditions apply.

If a breakdown happens, rest assured we'll get you back on the road as soon as possible. You can choose our Roadside Assist service, which will cover you for breakdowns across Australia for your entire lease. Or you can elect to use another preferred provider – it's up to you.

A novated lease saves you time and money across the board - providing tax benefits and offering cashless motoring. You will enjoy the convenience of a lease which covers everything from the car purchase price, to your monthly fuel bill. And you can relax knowing your registration and insurances are taken care of and your maintenance and repairs are in the best possible hands. Plus you'll pick up great discounts along the way.

If you leave your current employer, let us know straight away. If the new employer is an existing Toyota Finance customer, or they're willing to enter into a novation agreement, you can maintain all existing lease services and simply transfer the lease to your new employer.

Your new employer will need to agree to and sign the novation agreement.

If your new employer does not wish to enter in to a novation agreement, your services will cease and you will be required to continue lease payments from your after-tax salary. Alternatively, you can pay out your lease or refinance with a consumer loan.

Talk to us about how we can help.

When you set up your lease we will ask you to provide us with an estimated annual mileage (also known as your kilometre allowance). The kilometre allowance is important because it helps us accurately set budgets for your lease services such as maintenance, fuel and tyres.

This can be adjusted at any point during your lease if your circumstances change. For example, if you move house and you have to travel further, you might need to increase your fuel budget. Toyota Finance will help to monitor your budgeted lease services throughout your lease.

You can easily check real-time details of your budgeted vs actual position yourself via our online portal or call us and we can look up your account and discuss your budgets with you.

If any of your circumstances change during your lease term you should let us know as soon as possible. Any changes may affect the budgets that were set at the beginning of your lease.

Toyota Finance will help to monitor your budgeted lease services throughout your lease. You can easily check real-time details of your budgeted vs actual position yourself via our online portal or call us and we can look up your account and discuss your budgets with you.

You can always know exactly where you are with your budget with our intuitive Novated Online self-service portal.

You can access a summary of your budget vs actual expenditure and view detailed information for each item, so you can monitor your lease progress at a glance and make any adjustments accordingly.

We'll also issue an electronic statement on a quarterly basis with a summary of your position to date and all expenditure incurred during the quarter.

At the end of your lease or if the novation agreement ends, we will reconcile the budgeted lease services.

This means we'll match the amount received through payments against the actual expenses incurred. The reconciliation takes around 10 working days. We'll send both you and your employer a summary. If there's an overspend, the difference will be invoiced back to you via your employer.

If an underspend occurs, the difference will be refunded to you via your employer, who will make any required tax adjustments.

Should there be a significant overspend or underspend on your lease, you might like to adjust your budgets via a variation quote.

Toyota Finance will issue a lease variation which both you and your employer will need to sign. A revised lease payment will commence from the date of the variation.

Toyota Finance also monitors your lease and we may contact you if a variation is required.

We have a dedicated team of experts available to help with any questions you may have, at every step of the way.

You can call us on 1300 888 870 between 9.00 am and 6pm (Sydney time) or send us an email outlining your enquiry.

We can help you sell your car, thanks to our network of approved auction partners. We'll give you an estimated sale price, based on the car's details and once the car arrives on the lot and its condition is assessed, a final estimate and reserve price can be discussed. Our auction partner will work with you to maximise the car sales price. For more information, contact us on 1300 888 870 or email us.

If you wish to end your novated lease before the end of the term, please contact us on 1300 888 870 to receive a lease payout quote.

A payout figure will be calculated and the reconciliation process will begin.

There are flexible options available to you at the end of the lease, you can:

  • Extend your contract
  • Return the car and pay any charges or amounts owing
  • Make an offer to purchase the car

We will contact you three months before your lease is due to end and advise you of your options.

You should consider your options and circumstances and give us a call on 1300 888 870 or email us.

You may wish to purchase the car you have been leasing with us. This is not a problem and we are on hand to make this as simple as possible for you. You can make an offer to buy the car from Toyota Finance for an amount that is not less than the residual value plus GST as agreed when you took out your lease. Once the offer is accepted, we will issue you with a notification with instructions on how to pay.

You may decide you want to keep the car and continue with your novated lease. If so, you can request a quote to extend the lease for an additional term. The quote will need to be accepted by your employer and yourself and the new contract will be implemented.

At the end of your lease, or if the novation agreement ends, we will reconcile the budgeted lease services.

This means we'll match the amount received through payments against the actual expenses incurred. The reconciliation takes around 10 working days. We'll send both you and your employer a summary. If there's an overspend, the shortfall will be invoiced back to you by your employer.

If an underspend occurs, your employer will refund you the difference and make any required tax adjustments.

Getting a new car on another novated lease is easy with our dedicated team of experts on hand to help you every step of the way, getting into your new car couldn’t be easier. Toyota cars come in all shapes and size and with a broad range of features with a focus on fuel economy, style, comfort and performance.

Simply contact one of our team on 1300 888 870 or email for a fresh quote.



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