• Being a member owned organisation means we put members first rather than shareholders. Delivering value to members is our priority and why we focus on providing a great range of products and services all members can enjoy.
  • We’re experts in cars and work with other Auto Clubs, combining our knowledge to produce a comprehensive assessment of all popular vehicles on the Australian market (www.australiasbestcars.com.au) This information is designed to help you make an informed purchasing decision and can also help you make the right choice to meet your needs.
  • We give you FREE RACQ Lifestyle Membership when you finance your car with a Novated Lease. Not only does this give you a wide range of savings on everyday expenses like groceries, electricity and parking, you can also save on fun stuff like movie tickets, theme parks, concerts, dining, travel and more. You can use the discounts as often as you like throughout the year so there’s no limit to how much you can save.
  • RACV resorts are available for every one of our members to enjoy with at least 25% off full accommodation rates all year round. Located at Cape Schanck, Inverloch, Torquay, Goldfields and Cobram in Victoria, Noosa and Royal Pines Resort on the Gold Coast in Queensland and Hobart in Tasmania. You can count on RACV for a great getaway.
  • We believe that anyone interested in purchasing a vehicle with a Novated Lease should fully understand all the costs involved. So we’ve specially designed our quote document with a simple breakdown of all costs to ensure there are no grey areas or unexpected costs.
  • RACV is one of Australia's oldest and largest member organisations, trusted by over 2 million members. When you choose RACV you choose to enjoy over 100 years' experience of motoring, a passion for delivering excellent customer service and a focus on providing extra value to members.

Choosing RACV means choosing more for you.

“The experience I have had in dealing with [RACV Salary Solutions] has been excellent. I appreciate all the help and information needed to get the lease done. Overall very happy! Also a big thank you for getting a very good quote on the car”

Lee, new Toyota Corolla owner

Save with a Novated Lease

A Novated Lease is a simple and easy way to buy and run your next car and it’s a great way to save money too.

  • If you’re buying a car with a Novated Lease, you don’t have to pay GST on the purchase price, whether it’s a new or used car
  • You can also save GST on the running costs (fuel, tyres, insurance, registration and servicing) if you include them in your lease
  • By making payments from your pre-tax salary you’ll save income tax too
  • And you can purchase multiple cars this way, which is great for those who need more than one car for the family

So, when you add it all up it’s a great way to purchase the car of your choice and save thousands of dollars each year.

Buy a new car

Buying a new car can feel a bit daunting as it isn’t the sort of thing you do every day. It takes time, to decide the right one for you, especially if you’re trying to compare different makes and models. Negotiating with a dealer can be quite stressful, but it isn’t always easy to get the information you want online.

At RACV we can use our expertise to put you in the driver’s seat. As well as organising your lease, we can help you pick the right car to match your needs. Plus we buy cars every day, so can help you save money as well as arrange the delivery for you. But you don’t have to use this service to finance your car with a Novated Lease. You can arrange the purchase of your car yourself. The choice is yours.

You’re always in control

When you finance your car with a Novated Lease we don’t stop there. We also arrange everything for you. All you have to do is decide how long you want the lease to last and how many kilometres you think you’ll travel each year. We work out how much you need to pay to cover the lease payments and all the running costs. Then we manage everything for you.

  • We work out the cost of running your car each year to set a realistic annual budget
  • We provide you with a fuel card, so you can top up whenever you need to
  • We make sure that you’re not overcharged when your vehicle is being serviced or repaired and that you receive any special discounts we’ve negotiated
  • We even let you know when your tyres are due to be changed
  • We create an online account so you can keep track of your budget and your expenses

You can use a novated lease for a used car, a new car, a car you currently own or even a second car. Perfect for those who need more than one car for the family. So, when you add it all up it’s a great way to purchase the car of your choice and save thousands.

What can I include

A single regular payment covers everything including finance repayments, fuel, insurance and registration. You can pay these yourself and claim them back or we can manage the payments for you. Plus the payment is automatically taken out of your pay so you can set and forget.

Only pay for what you use

We’ll help you establish your annual budget based on the type of car you have and the number of kilometres you travel each year. Your budget is flexible, so it can be changed during your lease if your circumstances or your travel patterns significantly change.


“I really want to thank [RACV Salary Solutions] for all your assistance, you have been helpful beyond words and made the process amazingly easy. It really is refreshing to deal with someone that goes out of their way to assist, is professional and super friendly.”

Tim, new Mazda BT50 owner

RACQ Lifestyle Membership

Get access to discounts from thousands of dining, entertainment and retail partners FREE. You can save on everyday expenses like groceries, electricity and parking plus fun stuff like movie tickets, theme parks, concerts, dining, travel and more. There are no books or paper vouchers to keep track of, simply search and redeem offers online or through the easy access RACQ Discounts app.

Take advantage of discounts from thousands of partners*

With RACQ Lifestyle membership you can pre-purchase a range of tickets at up to 45% off. Enjoy a trip to the movies or attend a theme park, attraction or event at discounted member prices or special offers. Just search and redeem!

RACQ Lifestyle is the key to unlocking hundreds of discounts and savings. There are no points to collect or vouchers to hand over, just your membership number. You can use the discounts as often as you like throughout the year – there’s no limit to how much you can save!

Dining Rewards

Got a Visa card? By purchasing RACQ Lifestyle you can start eating out for less! Register and pay with your Visa and receive 10-20% cash back on your Visa (up to $100 per transaction) from hundreds of participating restaurants across Queensland.


Connect your Visa card to your RACQ membership for free.


Dine at any participating restaurant and pay with your registered Visa card.


You will receive 10-20% cash back automatically on your next Visa statement.

RACQ Lifestyle Membership

By showing your RACQ Membership Card you can get discounts at over 500 stores around Queensland and 1,200 throughout Australia. A range of discounts are available from Automotive, Entertainment, Home and Garden, Shopping and Lifestyle, Travel and Holidays plus many more.

*Retail partners, offers and discounts may change at any time without notice. Access the RACQ Discounts app or visit racq.com/discounts for the conditions, limits and exclusions for each offer.

Already a member?

If you’re already a member, you can gift your membership to another member of your family. We’ll provide them with a year’s free Lifestyle membership so they can enjoy all the benefits of RACQ membership too.

Find out more

How does a Novated Lease work?

You could be enjoying your new car and saving money in no time.

A Novated Lease is a three way agreement between you, the QLD government and a finance company. It’s a tax efficient way to purchase a car and save money. You choose the car and your employer pays the finance company from your salary. These payments are usually taken from your pre and post-tax salary, meaning you pay less income tax.

It’s so easy to buy a car with a Novated Lease:

  1. Simply select the vehicle of your choice
  2. Ask us to provide you with a quote
  3. Confirm you’re happy with all the costs that have been included (you usually include the finance payments and all the running costs of your car too)
  4. Finalise your Novated Lease agreement
  5. We purchase the car on your behalf, which means you save GST on the purchase price
  6. Drive away or have the vehicle delivered to you
  7. Start enjoying your new car and your ongoing savings
  8. Your employer makes payments on your behalf and deducts these payments from your pre and post-tax salary.

You save tax by making payments from your pre and post-tax salary

A Novated Lease is classed as a ‘Fringe Benefit’ by the Australian Tax Office. This is because your employer takes a contribution from your salary and provides you with a car for both business and personal use. This benefit attracts Fringe Benefit Tax (FBT). The amount of tax you need to pay is a tax office formula based on the value of your car (we work all that out for you).

For every after tax dollar that you contribute (these are the payments made from your post-tax salary), you reduce the amount of FBT you need to pay by exactly the same amount. So by making contributions from your post-tax salary to cover the amount of the FBT, you remove your FBT liability.

What happens at the end of the lease?

At the end of the lease you decide whether you

  • arrange a new Novated Lease and purchase a new car, again saving GST on both the purchase price and running costs
  • refinance your existing car by arranging a further lease and enjoying more ongoing savings
  • buy your car for its residual value (this is the value of the vehicle at the end of the lease). if you then decide to sell your car, you benefit from any profit you make, which is tax-free

There are lots of ways to save with a Novated Lease.

1 “Thank you for everything [RACV Salary Solutions]. I would like to express how outstanding your customer service has been the entire time, whether it be taking the time to meet with me to discuss my request, or explain things by phone, which has ultimately made the transition to my new lease a breeze. I really appreciate the extra length that you all went to in order to fast track my settlement documents within a couple of days of being informed my car was ready for delivery (1 month earlier than planned!). This truly is a great reflection on [RACV Salary Solutions] and would be the reason I would use you again.”

Jessica, new Toyota Camry Atara owner

Want to know how much you could save?

Why not try our easy to use calculator to see how just affordable a Novated Lease really is and how much you could save by purchasing your next car this way.

Calculate your savings

Calculator Assumptions

How do you save?

  Car Loan Novated Lease
Annual salary $0 $0
Pre-tax payment $0 $0
Salary after pre-tax deductions $0 $0
Post-tax payment $0 $0
Tax and medicare $0 $0
Net salary $0 $0
Annual car costs $0 $0
Income after tax & car costs $0 $0

Annual Saving $0

Total Saving $0

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You will pay

per fortnight

You will save

per year
over the term of the lease


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Frequently asked questions

Read through our Frequently Asked Questions for the most common questions people have about Novated Leasing.

A Novated Lease is a way to purchase your vehicle through your employer and access savings on income tax and GST. A portion of your salary is deducted from each pay to cover the finance and running costs of your car.
A Novated Lease is classed as a Fringe Benefit, which means you will be liable for Fringe Benefits Tax. For every dollar that you pay post tax you reduce this liability. We calculate this amount first to make sure you have no liability and then we take the rest of your payment from your pre-tax salary.
A Novated Lease is a three way agreement between you, your employer and a finance company. As it is a form of Salary Packaging, your employer must have an agreement with a Salary Packaging organisation like RACV Salary Solutions.
No, the vehicle does not need to be used for business purposes. Novated Leasing is actually designed specifically for employees to purchase the vehicle of their choice.

Find out how much you could save with our Novated Leasing calculator.
With RACV Salary Solutions you have the flexibility to package the best car for your needs, whether that’s a new, used or ex-demo vehicle. You can even package your existing car if it’s less than 8 years old.
Yes! With Novated Leasing almost all the costs of buying and running a car are included. For more information visit our What can I include page.

Items that can’t be packaged include road tolls and e-tag expenses, fines and infringement notices and any accessories or modifications fitted to the vehicle after purchase e.g. towbar, roof racks, window tinting etc.
Any trade-in or deposit you make will be refunded back to you by the dealership on delivery of your vehicle, it will not affect the finance amount.
Whilst packaging your vehicle with a Novated Lease you will not pay any GST on the vehicle purchase or maintenance costs*. This means you will be exempt from GST for most vehicle running costs for the term of the lease.

*If your employer can claim a refund of GST, your employer can pass this benefit on to you, meaning you can save GST on fuel, insurance and other maintenance costs. Please speak with your leasing consultant to confirm if this applies to your employer.
If for some reason you are no longer being paid a salary by your employer your Novated Leasing packaging arrangement will cease, however you are still responsible for making the loan repayments. If this occurs there are a number of options available to you:

  • Continue to make the lease repayments and running costs yourself out of your after-tax income;
  • Request a payout figure and finalise the lease with payment in full*;
  • Transfer your lease to a new employer (if the employer allows.)

*A Novated Lease is a commercial finance product where interest is applied upfront and a residual is payable. This can result in a payout figure greater than the value of the vehicle in the event of early lease termination.
Before the end of the lease term you will be contacted by an RACV Salary Solutions customer service team member to discuss your options:

  • Purchase another vehicle: RACV Salary Solutions can help you find a new vehicle and arrange your new budget, taking into consideration any outstanding balance from your previous lease. To finalise your existing lease you will need to pay the residual value by either selling your vehicle privately or trading it in and receiving cash (you cannot use this to negotiate a reduction on the new vehicle’s purchase price.)
  • Lease the same vehicle again: If you are happy with your current vehicle and it is less than 8 years old you can choose to lease it again. This results in a lower finance repayment and lower residual amount at the end of your new lease term.
  • Buy the vehicle outright: You can finalise your lease agreement and buy your vehicle outright by paying the residual value in full.
Absolutely! Simply contact RACV Salary Solutions on and speak with one of our customer service team.
Fringe Benefits Tax is a tax that is applied to benefits you receive from your employer that are not in the form of cash or wages.

A Novated Lease is classed as a Fringe Benefit. The amount of tax you pay is based on the value of your car.

You can reduce this amount by making payments from your post tax salary. Every $ you pay post tax reduces your FBT liability by the same amount. We calculate your post tax payments to reduce this tax to $0.

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