Skip to content

Novated car leasing

Novated car leasing is an arrangement between you, an employee and a financier that allows an employee to lease a car. Once it's set up, lease payments are deducted from the employee's pay and then paid to the financier by the employer.

Novated leasing can be complex, but if you're set up for employee benefits through Flare, one of the perks available to your employees is novated car leasing. This means setting up and managing a novated car lease has never been easier.

How it works

  1. You or the employee engages Flare to initiate the novated lease process.

  2. Flare contacts you to confirm and finalise the agreement.

  3. You'll then be guided through a one-time novated lease setup in MYOB.

  4. You'll pay the employee as normal - novated lease deductions will happen automatically.

  5. Flare will direct debit the deducted lease payments from your bank account.

  6. You'll record the lease payments in MYOB.

See it in action

Before you begin

Setting up novated leasing

When you first enter into a novated lease agreement with one of your employees and Flare, you'll be prompted to complete a one-time setup in your MYOB software. You'll be guided through everything that needs setting up, and best of all – most of it will be done for you.

Adding employee deduction amounts

Flare will provide the novated lease amounts to be deducted from an employee's pay, based on the lease agreement.

If these amounts have been determined when you first set up novated leasing in MYOB, you'll be prompted to add these amounts as the last step of the setup process.

Otherwise, once Flare have determined the lease payment amounts, you'll receive a separate prompt in your MYOB software to add them to the employee (similar to the setup prompts shown above).

Either way, the amounts are determined for you and you can add them to an employee's standard pay by clicking Add employee deductions.

If any other employees enter into a novated lease agreement through Flare, you'll simply be prompted to add their deduction amounts to their standard pay. No additional setup will be required.

Paying the employee

Once you've completed the one-time setup, and an employee's deduction amounts have been added to their standard pay, the lease payments will be automatically deducted each time you pay the employee.

This means you can run your payroll as you normally do without any additional steps. Need a refresher?

Recording the novated lease payments

Flare will direct debit the lease payments from your bank account, and you'll need to record these payments in MYOB.

FAQs