What is a Hyundai Novated Lease?
Drive the Hyundai of your dreams while making potential tax savings along the way with a Hyundai Novated Lease Powered by Smart™.
A novated lease is a three-way agreement between you, your employer and Smart™. By combining your leasing repayments and eligible running costs into one regular payment deducted from your pre- and post-tax salary, a novated lease can help simplify budgeting while offering potential tax benefits, depending on your individual circumstances.
Why choose a Hyundai Novated Lease?
Enjoy potential tax benefits:
- You could reduce your taxable income from paying with your pre-tax salary
- You won’t pay GST on the purchase price of the vehicle, representing a potential saving of 10%*
- You could save GST on eligible vehicle running costs
Why Hyundai?
Hyundai offers a range of vehicles designed to suit different stages of life, from compact city slickers and spacious family SUVs to award winning hybrid and electric vehicles.
- Award-winning innovation
- 7-year unlimited KM warranty1, when servicing with Hyundai
- ICE, Hybrid and electric vehicle options
- A nationwide dealer network for support and servicing
The Smart™ Choice.
Smart™ is one of Australia’s leading salary packaging and novated leasing providers.
With decades of experience helping Australians access the benefits of salary packaging and novated leasing, Smart™ provides expert support throughout the process.
How a Hyundai Novated Lease Works.
Choose your Hyundai and customise your package
Start by speaking to your dealer and selecting your Hyundai. Work with our experts to structure your lease to suit your budget and include the eligible running costs you need.
Approval Process
Once your employer agrees to the arrangement, Smart™ handles all the paperwork.
Your Hyundai Novated Lease Begins
Review your lease documentation and sign your agreement to get things underway. Your novated lease then begins, with one regular payment covering your vehicle and your eligible running costs including things like servicing and registration.
Manage your Novated Lease
Enjoy your car while your lease payments and bundled running costs are managed through your lease. Track your spending and stay on top of your budget along the way with the freedom to adjust your ongoing budgets to suit your driving needs.
End of Lease Options
When your lease finishes, choose what’s next:
i) Arrange to sell the vehicle and, once the residual (balloon amount) has been paid, put any remaining funds towards your next vehicle.
ii) Extend your lease and potentially keep saving on income tax.
iii) Pay the residual on your lease and own your car outright.
Save More on Eligible Electric Vehicles.
It’s a great time to lease an EV.
Eligible battery electric vehicles may attract additional novated leasing benefits under current federal government incentives and eligible EVs are exempt from Fringe Benefits Tax (FBT)^.
Hyundai offers award-winning electrified vehicles crafted to flow through each of life’s twists and turns.
FAQs.
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A novated lease allows you to use money from your salary before tax is taken out. This money is used not only for your vehicle’s repayments, but also eligible general running costs, including the expenses such as registration, insurance and servicing. You’ve got these expenses pre-budgeted for, while potentially benefiting from reducing your taxable income.
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The Electric Car Discount^ is an initiative from the Federal Government to help make EVs more affordable by exempting eligible^ cars from Fringe Benefits Tax.
The discount is available on eligible^ new or used fully electric vehicles that are first registered after 1 July 2022, fall below the Luxury Car Tax (LCT) threshold (currently $91,661 in FY 2026-27) and have never had LCT applied at import or sale.
^Fringe Benefits Tax (FBT) exemption available for eligible electric or hydrogen cell vehicles purchased through a novated lease up to the Luxury Car Tax limit ($91,661 in FY 2026-27). See the Australian Taxation Office website for full eligibility criteria.
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FBT stands for Fringe Benefits Tax, which is a tax applied to benefits you receive through your employer that aren’t a salary. A novated lease is considered a fringe benefit. Because novated leases incur FBT, it is recommended to make post-tax contributions to offset the FBT liability. This is known as ECM, or the employee contribution method, because the employee (you) is the one making the contributions. If you have an eligible electric vehicle, your lease could be exempt from FBT requiring no post tax contribution, thanks to the Electric Car Discount. Click here for more details.
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Smart is a leading salary packaging and novated leasing company, trusted by clients across numerous industries including government, healthcare, not-for-profit, education and corporate.
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Yes, you can claim electricity for charging an EV – both at home via a smart meter or at a public charging station. However, only one of these methods can be claimed per Fringe Benefits Tax year (which goes from 1 April – 31 March). Currently, the installation and cost of a home charging station cannot be claimed under a novated lease agreement.
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The good news about novated leases is that they could move with you if you change employers. Even though your employer manages your lease payments via your salary, the lease is in your name. If you change jobs during your lease term, speak to your new employer about transferring the lease to your new organisation. Alternatively, you could choose to buy your car outright by paying the residual value or keep making payments with post-tax dollars.
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There are three options at the end of your lease:
- Arrange to sell the vehicle and, once the residual (balloon amount) has been paid, put any remaining funds towards your next vehicle.
- Extend your lease and potentially continue saving on income tax.
- Pay the residual on your lease and own your car outright.
For more details, visit the Smart website.
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Depending on your lease arrangement, costs that may be included are:
• Vehicle repayments
• Registration and CTP
• Comprehensive insurance
• Scheduled servicing and maintenance (Pre-Paid Servicing)
• Tyres
• Fuel or EV charging costs
• Roadside assistance
Disclaimers.
Hyundai Motor Company Australia makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, or suitability of the information provided. Any reliance you place on such information is strictly at your own risk. Hyundai Motor Company Australia will not be liable for any errors, omissions, or inaccuracies.
This is general information only. Before entering into any salary packaging or novated leasing arrangement, you should consider your objectives, financial situation and needs, and seek appropriate legal, financial or other professional advice based upon your own particular circumstances. The availability of benefits is determined by your employer. Conditions and fees apply. Smartsalary Pty Ltd, ABN 24 096 796 100, a Smart™ company.
*GST is not payable on the purchase price of a vehicle financed through a novated lease (GST savings are calculated on the FBT base value of the vehicle, up to the claimable limit [$6,353 in FY 2026-27] unless exempt).
1 In addition to the 5 Year Standard New Car Warranty, Hyundai provides an extended warranty for up to a further 2 years, when all servicing is with Hyundai, on passenger vehicles first registered from June 1, 2025. Maximum warranty is 7 years from date of first registration, on the condition that all scheduled services are completed within the specified service intervals at an authorised Hyundai dealer. Otherwise, the standard 5 year unlimited km warranty (from the date of first registration) applies. Service conditions apply. Excludes Hybrid & EV drive batteries, which are warranted for 8 years / 160,000km (whichever occurs first) from the date of first registration. Does not apply if the vehicle is used at any time during the warranty period used for a “commercial application” as defined in the warranty policy, which includes use as a taxi, hire, ride-share, rental, courier, delivery, security, driving school, tour, bus operator or emergency vehicle, or any other use in the course of trade for the purpose of carrying passengers or goods. Passenger vehicles used for a commercial application are provided with a 5 year/130,000km warranty (whichever occurs first). People Mover Vans used for a commercial application are provided with a 5 year/160,000km warranty (whichever occurs first). Commercial Vans are provided with a 5 year/160,000km warranty (whichever occurs first) regardless of its usage. Terms, conditions and exclusions apply, view the Warranty page.
^ Fringe Benefits Tax (FBT) exemption available for eligible electric or hydrogen cell vehicles purchased through a novated lease up to the Luxury Car Tax limit ($91,661 in FY 2026-27). See the Australian Taxation Office website for full eligibility criteria.