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Novated Leasing for Not-for-Profit Staff

Novated Leasing for Not-for-Profit Staff

Salary packaging a car when you work for a not-for-profit

If you work for a charity, public benevolent institution, health service or other not-for-profit, salary packaging a car through a novated lease can be especially good value. That is because many not-for-profit employers have fringe benefits tax (FBT) concessions that reduce the FBT on your car.

FBT concessions for not-for-profit employers

  • Public benevolent institutions and health promotion charities are exempt from FBT on benefits up to a grossed-up value of $30,000 per employee each year.
  • Public and not-for-profit hospitals and public ambulance services are exempt up to $17,000 per employee each year.
  • Rebatable employers, such as many other registered charities and not-for-profits, get a 47% rebate on FBT up to $30,000 per employee.

Your employer’s salary packaging team can tell you which applies to you and how much of your cap is already used.

Electric cars for not-for-profit staff

Eligible electric cars are exempt from FBT and, unlike other benefits, do not use up your not-for-profit cap. Combining a novated EV lease with your other salary packaging can save you a lot.

Electric car FBT rules: the timeline

  • Until 31 March 2027: eligible electric cars priced below the luxury car tax threshold for fuel-efficient vehicles ($91,661 for 2026-27) are fully exempt from fringe benefits tax.
  • From 1 April 2027: the Government has announced the full exemption will continue only for eligible EVs under $75,000. Eligible EVs above $75,000 (but below the threshold) will get a 25% FBT discount instead.
  • From 1 April 2029: all eligible EVs move to the 25% FBT discount.
  • Existing leases: arrangements already in place are expected to keep their current treatment.

These changes have been announced and released as draft legislation. We will update this page as the rules are finalised.

For employers

Offering novated leasing is a valuable benefit that helps not-for-profits attract and keep staff. PAR Leasing can help you set it up and will look after your employees directly. We also provide guaranteed buyback leases for your organisation’s own vehicles.

Frequently asked questions

Can not-for-profit staff get a novated lease?

Yes, if your employer offers salary packaging. Many charities, health services and schools do.

Does a novated car use up my not-for-profit salary packaging cap?

A car on a novated lease is a fringe benefit and can use part of your cap, depending on your employer’s FBT status. An eligible electric car is exempt from FBT and does not use your cap. Ask your employer’s payroll team for details.

Which is better for me, petrol or electric?

It depends on how far you drive and what you want to spend. Eligible electric cars are FBT exempt, so they often save the most. We can quote both so you can compare.

This is general information only and does not take your circumstances into account. Tax rules can change, so please speak to your accountant or tax adviser before making a decision.

Talk to PAR Leasing

Call us on (03) 8387 1200, email davidb@parleasing.com.au or send us a message for a free, no-obligation quote. PAR Leasing is the fleet division of Alan Mance Motors, based at 237-241 Geelong Road, Footscray, and works with organisations across Victoria and the east coast of Australia.

Alan Mance Motors
Driving Satisfaction Since 1978
PAR Leasing - Partners in Performance
  • Phone: (03) 8387 1200
  • Fax: (03) 8387 1201

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