Can I keep my Kia at the end of the novated lease?

At the end of your novated lease you do have the option of keeping your vehicle. You'll need to pay a residual cost to buy the car. Alternatively, you can extend your lease for longer and bring the residual cost down. Or, you can start a completely new lease with a new vehicle. To compare your options see our full guide here.

What happens if I change my mind about the Kia?

Unfortunately, once you've started your lease you won't be able to change your mind easily. You should be certain that you've chosen the car you're happy to drive for the duration of the lease. If you decide you don't want to drive the Kia anymore you would need to pay out your existing lease and start a new one, which is likely to be quite expensive.

What happens if I change employers during the novated lease?

If you change employers during your novated lease you're still responsible for repaying the cost. You've still essentially borrowed money for the car and the responsibility falls on you to make the repayments. You may be able to move your novated lease to your new employer, but you'd need to have that conversation with them. Otherwise, you'd start repaying the costs out of your post-tax income, which removes a lot of the benefits.

What happens if I damage or write off the car?

If you damage or write off the car you still need to pay off the remaining amount on the lease. Ideally, the insurance cover you have would be adequate enough to cover the full cost. But if you don't have adequate insurance coverage you'll need to pay out of pocket for the rest of the lease costs. If you're on a fully maintained lease the insurance costs will be included in your lease repayments, so be sure to check your coverage. If you're on a non-maintained novated lease you're responsible for your own insurance costs, so you should make sure when you take out the coverage that it would cover the cost of the car in an accident.

Novated leasing for Kia

Kia is a global car manufacturer with a wide range of models available to buy or novated lease.
Novated leasing is a form of salary sacrifice where your pre-tax income is used for car lease repayments.
By leasing one of Kia's electric vehicles, employees could save on income tax and fringe benefits tax.

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 Kia for your novated lease?

Range: Kia offers a wide range of vehicles, in different sizes and both fuel and electric vehicles.
Affordability: Kia is an affordable car manufacturer, with cars below the luxury car tax threshold.
Tax Benefits: Kia offers a range of battery electric vehicles, which may be eligible for an exemption from Fringe Benefits Tax (FBT).
Eco-Friendly: Not only a tax benefit, driving one of Kia's electric vehicles saves you money on fuel and supports the environment.

What Kia models are available for novated leasing?

Kia's Australian range includes the models below. Grades, prices and availability change often, so check the current line-up with Kia or your leasing provider before you choose.

Carnival (including hybrid)
EV4 (electric)
PV5 (electric van)
Picanto
Seltos (including hybrid)
Sorento (including hybrid and plug-in hybrid)
Sportage (including hybrid)
Stonic
Tasman (ute)
K4
EV3 (electric)
EV5 (electric)
EV6 (electric)
EV9 (electric)

What are the novated lease tax advantages and incentives?

FBT Exemption: Kia's battery electric vehicles can be exempt from fringe benefits tax (FBT) if they meet the eligibility rules, including that no luxury car tax has been paid on the car. Plug-in hybrids are generally not eligible.
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.

What are the steps to get a Kia novated lease?

Check with your employer: Not every employer offers salary sacrificing as an option so the first step is to make sure yours does.
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.
Calculate the costs: Use a novated lease calculator to make sure you can afford your reduced salary.
Select your Kia model: There's a wide range of models, so you'll be sure to find one that suits you.
Engage a leasing company: Partner with a reputable provider to structure your lease. Your employer may already have one that it uses.
Salary packaging: Work with your employer to finalise the arrangement.
Drive away: Enjoy your new Kia with the benefits of a novated lease.

Frequently asked questions about Kia novated leasing

Unfortunately, once you've started your lease you won't be able to change your mind easily. You should be certain that you've chosen the car you're happy to drive for the duration of the lease.
If you decide you don't want to drive the Kia anymore you would need to pay out your existing lease and start a new one, which is likely to be quite expensive.
If you change employers during your novated lease you're still responsible for repaying the cost. You've still essentially borrowed money for the car and the responsibility falls on you to make the repayments. You may be able to move your novated lease to your new employer, but you'd need to have that conversation with them. Otherwise, you'd start repaying the costs out of your post-tax income, which removes a lot of the benefits.
If you damage or write off the car you still need to pay off the remaining amount on the lease. Ideally, the insurance cover you have would be adequate enough to cover the full cost. But if you don't have adequate insurance coverage you'll need to pay out of pocket for the rest of the lease costs.
If you're on a fully maintained lease the insurance costs will be included in your lease repayments, so be sure to check your coverage. If you're on a non-maintained novated lease you're responsible for your own insurance costs, so you should make sure when you take out the coverage that it would cover the cost of the car in an accident.

Finder writers are subject matter experts and use primary sources, in-depth research and interviews with other experts to ensure you're getting accurate, up-to-date information. Articles are fact checked in line with our editorial guidelines.
1. ATO, Car leasing and FBT
2. Kia

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Written by

Rebecca Pike

Editor, Money

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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

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Kia novated leases

Choose from one of Kia’s many models and drive away with tax benefits and manageable repayment costs.