What's an Associate Lease?

What is an Associate Lease?


An Associate Lease has similar salary packaging advantages to a Novated Lease but it is slightly more complex to explain and understand. But, let’s give it a go and we recommend you don’t try to read it all in one breath.

An Associate Lease permits an Employee’s Associate (i.e. spouse, child, relative, family company or family trust) to lease a car to your Employer.

The most critical factor is that the car must be owned by the Associate. The car does not have to be a new purchase and may be the Associate’s existing car. 

The Associate enters into an agreement (Lease) with your Employer and they agree to let you use it exclusively. The car is provided to you by your Employer as a part of your remuneration package.

The Associate and your Employer agree on a monthly lease rental, which includes all of the car running costs for the term of the Lease. 

The running costs include:

  • Fuel
  • Registration renewal
  • Servicing & Maintenance
  • Tyre replacement
  • Comprehensive insurance
  • Roadside Assistance, etc.

If your head is now spinning or it’s a little too complicated to understand, just contact one of our specialists and we’ll go through it with you.

What are the benefits of an Associate Lease?

For an Associate Lease to be of benefit, the Associate would normally be either not working, not receiving any income or their earnings place them in a lower tax bracket than you.

You have salary deductions taken from your pre-tax salary and therefore you reduce the amount of tax that you pay. The Associate receives the funds from your salary deductions and uses these funds to pay for the operating costs of the car. There are some other tax matters to consider but in effect, you are ‘income splitting’ with the Associate.

How do I find out more or get started?

All you need to do is contact us and speak with one of our Lease Experts and they can answer any of your questions, clarify any other questions, supply some no obligation calculations and if acceptable, guide you through the process to set up an Associate Lease.