Novated leasing in Melbourne
Transparent novated leasing for Melbourne employees. See real FBT, stamp duty and running cost numbers for VIC — not sales-pitch estimates. millarX, ACL 569484.
If you work in Melbourne and earn over $80,000, a novated lease is usually the cheapest way to drive a new car. The savings come from paying for the vehicle and most of its running costs out of your pre-tax salary — which works particularly well in Victoria because the state has Australia's highest novated-leasing participation rate, and most major Melbourne employers (universities, hospitals, banks, councils) already have novated leasing approved as a salary-packaging benefit.
This page is a Melbourne-specific guide — what the numbers actually look like for a Victorian employee, what stamp duty you'll pay, and the FBT rules that apply when you live and register the car in Victoria.
The headline: for a brand-new electric vehicle under the FBT exemption threshold (currently $91,387 driveaway in 2025-26), the FBT bill is zero, the entire car comes out of pre-tax salary, and the tax saving for a Melbourne worker on $90k is roughly equivalent to a 35-40% discount on the lease cost.
What's different about novated leasing in Melbourne
Stamp duty: Victoria charges stamp duty on passenger vehicles at 4.2% under the luxury threshold ($80,567 in 2025-26) and 5.2% above. The Victorian government's separate ZLEV road-user charge was struck down by the High Court in 2023, so EV drivers in Melbourne don't face that levy any more.
Rego: VicRoads vehicle registration runs around $868/year for a standard passenger car in metropolitan Melbourne (the metro rate is higher than country VIC). The novated lease budget covers this for you.
FBT exemption for EVs: the federal exemption for plug-in hybrids ended on 1 April 2025, so for new orders the exemption now only applies to fully battery-electric vehicles under the LCT threshold (currently $91,387 driveaway). Tesla, BYD Atto 3, Polestar 2, Kia EV5, MG4 — all in scope. A new Outlander PHEV is not.
Major Melbourne employers with novated leasing: Royal Melbourne Hospital, Monash Health, University of Melbourne, RMIT, Deakin, NAB, ANZ, Telstra, Coles, Woolworths group, City of Melbourne, City of Yarra, Department of Education VIC. If you work for any of these, novated leasing is almost certainly available through your HR portal — you don't need permission, just paperwork.
Melbourne novated leasing FAQ
Do I have to live in Melbourne to do a novated lease through millarX?
No — millarX operates Australia-wide. We're Ivanhoe-based and many of our customers are Melbourne employees, but the lease is tied to your employer's payroll, not your address. Whether you're in Footscray, Frankston or Bendigo, the structure works the same way.
Does my Melbourne employer need to set anything up?
If your employer already offers novated leasing (most large Melbourne employers do), the setup is just a deed of novation signed between you, your employer and the financier. If they don't currently offer it, we can talk to your HR or finance team directly — there's no cost to the employer and the admin overhead is genuinely small.
What happens if I change jobs in Melbourne?
You take the car with you. The lease transfers from your old employer's payroll to your new one (assuming the new employer offers novated leasing — almost all major Melbourne employers do). If there's a gap or your new employer doesn't offer it, you can either pay the lease from after-tax income temporarily or restructure.
Are the stamp duty and rego numbers above guaranteed?
They're current as of 2026 and accurate for a standard passenger vehicle registered in metropolitan Melbourne. State charges change every year in the May budget, so we refresh these numbers regularly. For an exact quote on your vehicle, the calculator pulls live rates.