BYD novated leases

What is a Novated Lease?

A novated lease is a three-way agreement between an employee, the employer, and a leasing company.

The employer agrees to make monthly repayments, which it takes out of the employee's salary. Crucially, it takes those repayments from the employee's pre-tax salary. This reduces the employee's taxable income.

It can lead to substantial tax savings and often includes vehicle expenses like maintenance and insurance.

Why choose a BYD for your novated lease?

• Affordability: BYD offers competitively priced EVs, making them accessible for many Australians.
• Tax Benefits: BYD offers cars priced under the luxury car tax (LCT) threshold. BYD's electric vehicles will also be exempt from paying Fringe Benefits Tax (FBT).
• Eco-Friendly: Driving a BYD supports environmental sustainability with zero emissions.

What BYD models are available for novated leasing?

• BYD Atto 3: A fully electric compact SUV with safety features like lane departure warning, cruise control and front and rear collision warning.
• BYD Dolphin: A fully electric hatchback ideal for city driving.
• BYD Seal: A sleek sedan which uses cell-to-vehicle technology, meaning power from the battery goes to the entire structure of the vehicle. This allows for safety features like lane departure warnings and predictive collision warnings.
• BYD Shark 6: A plug-in hybrid ute for versatile use, including off-roading.
• BYD Sealion 6: A hybrid engine combined with a BYD Blade battery.
• BYD Sealion 7: Powered by a BYD Blade battery. You can choose rear-wheel drive or all-wheel drive.

What are the tax advantages and incentives?

• FBT Exemption: Electric vehicles are exempt from fringe benefits tax (FBT).
• GST Savings: Pay no GST on the purchase price and running costs.
• Reduced Taxable Income: Lease payments made from pre-tax salary lower your taxable income.
• Repayment simplicity: Because repayments come out of the employee's pre-tax salary, it's easy to manage and there's almost no risk of missed repayments.
• Employee perk: For employers, it's a good perk for your staff with little-to-no risk to the business.

Calculating your savings

Before you decide to take out a novated lease, you should use a novated lease calculator to understand your costs.

What are the steps to acquire a BYD Novated Lease?

1. Check with your employer: Not every employer offers salary sacrificing as an option so the first step is to make sure yours does.
2. Check eligibility: Some job types or casual workers may not be eligible for salary sacrificing. This is a conversation you should have with your employer.
3. Calculate the costs: Use a novated lease calculator to make sure you can afford your reduced salary.
4. Select your BYD model: Choose the model that suits your needs.
5. Engage a leasing company: Partner with a reputable provider to structure your lease. Your employer may already have one that it uses.
6. Salary packaging: Work with your employer to finalise the arrangement.
7. Drive away: Enjoy your new BYD with the benefits of a novated lease.

Our expert says: Choose the right vehicle for you

"BYD offers several vehicle types and it's important to pick the one that's right for you in terms of cost, vehicle type and tax benefits. Choose a vehicle that's right for your lifestyle, but also make sure you can afford the lease repayments comfortably. Take into account that with changes to luxury car tax on 1 July 2025, hybrid vehicles may fall under the lower luxury car tax threshold."

Rebecca Pike

Editor, Money

Frequently asked questions

• What is a novated lease?

  A novated lease is a form of salary sacrificing to lease or own a car. Through an agreement between employee, employer and leasing provider, the employee uses their pre-tax salary to make lease repayments. This lowers their taxable income and provides a cost-effective way to purchase a car. You can even get a fully-maintained novated lease where all maintenance costs are included as well, further reducing the taxable income.

• Why choose a BYD for novated leasing?

  BYD offers several options of cars for whatever type of driving you do. Some of the reasons to choose a BYD vehicle include its sophisticated technology including its Blade battery as well as the safety features on offer and internal features like wireless charging pads. BYD's vehicles also come under the luxury car tax threshold and its electric vehicles will be exempt from FBT.

• What tax benefits are available?

  By choosing a BYD for a novated lease you could benefit from a few tax benefits.

  1. Lower income: By making pre-tax salary deductions you'll pay less tax and may even find yourself in a lower tax bracket.
  2. Avoid luxury car tax: Electric vehicles have a higher luxury car tax threshold, so you may be able to avoid the tax if you choose the right vehicle.
  3. Avoid FBT: By choosing an electric vehicle you can avoid paying fringe benefits tax, which is typically passed on to the employee in a novated lease.

• Which BYD models are eligible?

  You can take out a novated lease for any of BYD's 6 models:

  1. BYD Atto 3
  2. BYD Dolphin
  3. BYD Seal
  4. BYD Shark 6
  5. BYD Sealion 6
  6. BYD Sealion 7

Written by

Rebecca Pike

Editor, Money

Rebecca Pike is Finder’s money editor, with over 7 years of experience in mortgages and personal finance. A frequent TV and radio commentator, she frequently appears on Sunrise and 7News, Today and 9News, as well as Sky News, Channel 10 and across radio and print. Rebecca previously served as Editor of Mortgage Professional Australia. She has a Master’s degree in Journalism as well as ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, which comply with ASIC guidelines. See full bio

Rebecca's expertise

Rebecca has written 267 Finder guides across topics including:

• Home loans
• Personal Loans
• Car Loans
• Cost of living
• Budgeting