A novated lease is one of the most tax-effective ways for Australian employees to finance a car — but before you sign, there’s a decision that can meaningfully change what you pay: do you go fully maintained, or lease-only?
At eCarz, we provide both options — fully maintained and lease-only — so you’re never locked into one structure just because it’s all we sell. Some clients novate just the lease payments and manage running costs themselves. Others bundle the full cost of ownership — fuel, insurance, registration, servicing and tyres — into one pre-tax salary deduction.
Neither option is universally better, and we don’t tell clients which to pick. What we can share is how each structure works and how our clients think it through. And whichever structure you land on, we can also help source the vehicle itself — new cars of any make, including electric — through our buying network.
What's the difference?
A fully maintained novated lease packages your vehicle’s running costs alongside the finance. Fuel or charging, servicing, tyres, registration and insurance are all budgeted into a single deduction taken from your salary, largely pre-tax.
A lease-only (self-managed) novated lease novates just the finance component. You still get the salary-packaging tax benefit on the lease payments, but you pay for fuel, insurance, registration and maintenance yourself, from your own accounts, choosing your own providers.
Why some of our clients choose fully maintained
These are the reasons clients most commonly give us — not recommendations:
- Tax benefit across every car expense. Running costs are bundled into the pre-tax deduction, so the tax saving applies to fuel, servicing, tyres, registration and insurance — not just the lease payment.
- Budgeting simplicity. One fixed, predictable deduction covers the car entirely. No surprise tyre bills, no registration renewal shock. Many clients tell us that certainty alone is what sold them.
Why some of our clients choose lease-only
Again, this is what clients report finding in their own situations:
- You keep control. Service where you like, insure with whoever quotes best, and fit the tyres you actually want.
- Low running costs make the bundle less valuable. If there’s not much spend to package, the tax benefit on running costs is small — while the fees remain.
- You already have cheap arrangements. Charging an EV from home solar is close to free, and providers can’t easily package your electricity bill (though we can now offer per-kilometre EV charging reimbursements).
- Budget surpluses can be clunky. If the package over-budgets your running costs, reconciling or refunding the surplus at lease end can be slow and messy.
The EV factor: why electric changes the maths
This decision looks different for electric vehicle drivers, and it’s the main reason lease-only has grown in popularity among our clients.
As a factual matter, an EV simply has less to package. There’s no fuel bill. Servicing is minimal — no oil changes and far fewer moving parts. Regenerative braking means brake components last longer. If you charge mostly at home, especially from solar, your biggest running cost barely registers as a cost at all.
That shrinks the tax benefit of a maintained package while the management fees stay the same. For an EV charged mostly at home, many of our clients find lease-only — or a lightly maintained package covering just registration and insurance — is the structure they end up choosing. Whether it suits you depends on your own costs and circumstances.
The biggest saving applies either way
For eligible electric vehicles, the headline benefit of a novated lease is the fringe benefits tax (FBT) exemption — and as a matter of current law, it applies whether you go fully maintained or lease-only.
Battery electric vehicles priced under the luxury car tax threshold for fuel-efficient vehicles ($91,387 for 2025–26, rising to $91,661 from 1 July 2026) are currently exempt from FBT when novated. That means the lease payments themselves come out of pre-tax salary without the usual FBT cost.
Plug-in hybrids lost this exemption from 1 April 2025, and the exemption is legislated to begin phasing down from 1 April 2027, with leases signed before then grandfathered for their full term under the current rules.
Those are the legislated settings as at August 2026. How they affect your circumstances and timing is something you should discuss with your financial adviser or registered tax agent.
Frequently Asked Questions
Is a fully maintained novated lease worth it for an EV?
That depends on your circumstances, and we can’t answer it for you. What we can say is that EVs have no fuel costs and minimal servicing, so there’s often little spend left to package while the provider’s management fees remain. Many of our home-charging clients find lease-only or a lightly maintained package is the better fit for them.
Do I still get the FBT exemption with a lease-only novated lease?
Yes. Under current law, the EV FBT exemption applies to the novated lease payments for eligible electric vehicles under the luxury car tax threshold, regardless of whether running costs are packaged.
What happens to unused running-cost budget in a maintained package?
Surpluses are typically reconciled and refunded at lease end, but clients report the process can be slow and the refund is usually treated as taxable. Over-budgeting is common, so ask your provider how surpluses are handled before signing.
Ready to Turn Tax and Fuel Costs Into Savings?
eCarz provides both fully maintained and lease-only novated leases. We can also help you source your next new vehicle, including electric, often at fleet-level pricing through our dealer network.
Whether you’re leaning towards the full-service simplicity of a maintained package or the lean economics of a lease-only novated lease, we can structure either option and show you the real numbers side by side before you commit, so you can make your own informed decision.
Disclaimer: This article is general information only and does not constitute financial, tax or legal advice. It does not take into
account your objectives, financial situation or needs. Client experiences described are individual observations and are not a
recommendation of any product or structure. Figures current as at August 2026. Consider seeking advice from a licensed
financial adviser or registered tax agent before making any decision.
General information only: eCarz is a novated leasing provider, not a licensed financial adviser. Nothing in this article
is financial, tax or legal advice. What follows is factual information about how each structure works, and what our
clients tell us about their own experiences. Your circumstances are different — consider seeking independent advice
before deciding.