Novated Leasing in Melbourne, VIC – No Fluff, Real Savings
Get a novated lease in Melbourne without the runaround. millarX explains VIC costs, EV incentives, and employer eligibility. ACL 569484. AFCA member.
Melbourne is one of the better cities in Australia for making novated leasing actually work for you. The commuter belt is real — whether you're driving in from the outer suburbs of Frankston, Craigieburn, or Werribee, or navigating the inner-city crawl from Brunswick to the CBD, most Melbourne workers rely on a private vehicle for at least part of their week. That consistent car dependency is exactly what makes novated leasing worth looking at: you're already spending money on a car, so you may as well run it through a structure that lets you pay for it with pre-tax salary.
Melbourne also has one of Australia's most diverse employer mixes — major universities, a large public hospital network, state government agencies, and a dense cluster of ASX-listed and multinational private employers. Most of these organisations already have novated leasing set up as a standard benefit. If your employer is on that list, you can start a lease without waiting for HR to negotiate anything new. If they're not, millarX can get them set up quickly.
What's different about novated leasing in Victoria?
Victoria has a few state-specific factors worth understanding before you sign anything.
Stamp duty on vehicle registration: VIC applies stamp duty to the dutiable value of a vehicle when it's first registered. On a novated lease, the duty is typically calculated on the purchase price of the car. This is a one-off cost, but it can be meaningful on a higher-value vehicle — factor it into your comparison when looking at total on-road costs.
Registration costs: VIC rego is calculated based on vehicle type, weight, and your postcode-based TAC charge. If you're in an outer metropolitan area, your TAC premium may differ from someone in the inner suburbs. Your novated lease package will include rego as a running cost, so millarX will account for your actual postcode when building your budget.
EV incentives — where things stand: Victoria previously offered a Zero Emissions Vehicle (ZEV) subsidy for new electric vehicles, but that rebate program has now closed to new applicants. What does still apply federally is the FBT exemption for eligible electric vehicles under the current rules — meaning a battery electric or plug-in hybrid vehicle under the relevant luxury car tax threshold may attract no fringe benefits tax at all under your novated lease. That's a genuinely material benefit and it's the main reason EVs and novated leasing are such a common combination right now. VIC also has public EV charging infrastructure expanding through the metro and regional areas, which makes range anxiety a less serious issue than it was a couple of years ago.
Payroll tax: Not your problem as the employee, but worth knowing — VIC employers treat novated lease salary packaging in line with ATO guidance, and millarX handles the FBT calculations and reporting on your employer's behalf.
Melbourne employers where novated leasing is already available
Novated leasing is most straightforward when your employer already has an arrangement in place. In Melbourne, that includes a wide range of organisations across sectors:
Universities: The University of Melbourne, Monash University, RMIT University, Deakin University, La Trobe University, and Swinburne University of Technology all have salary packaging programs that typically include novated leasing.
Health and hospital networks: Alfred Health, Austin Health, Melbourne Health (Royal Melbourne Hospital), Monash Health, Eastern Health, and St Vincent's Hospital Melbourne are among the major health employers with established packaging arrangements.
State government: Victorian Public Service employees across departments, as well as VicRoads, Transport for Victoria, and other statutory authorities commonly have access to novated leasing through approved providers.
Banking and financial services: ANZ, NAB, and Westpac all have Melbourne-based staff with access to novated leasing programs — millarX is Westpac's #1 ranked novated broker.
Large private employers: Telstra, Medibank, Dulux Group, Boral, and a range of ASX-listed and multinational companies with Melbourne headquarters or major offices typically have novated leasing as a standard employee benefit.
Not on this list? That doesn't mean you can't access a novated lease. millarX can onboard new employers — it's usually less paperwork than people expect.
Common questions from Melbourne employees
Does the FBT exemption for EVs apply to me as a Victorian employee?
Yes — the FBT exemption for eligible electric vehicles is a federal measure, so it applies regardless of which state you're in. If you're in Melbourne and your employer runs a novated lease arrangement, an eligible EV under the relevant threshold could attract zero FBT under current rules. millarX will confirm eligibility for any specific vehicle before you commit.
Is stamp duty included in my novated lease, or do I pay it separately?
Victorian stamp duty on the vehicle is typically treated as part of the on-road costs and can be included in your novated lease budget. millarX factors this into your quote upfront so there are no surprise costs at delivery.
I work for the Victorian Government — can I still get a novated lease?
Yes. Many Victorian Government departments and agencies have novated leasing as an approved employee benefit. Check with your HR or payroll team about which providers are approved, and contact millarX to confirm your eligibility — in many cases you can start the process directly.
Does it matter that Melbourne's public transport is reasonably good in the inner suburbs?
Only insofar as it affects how much you actually drive. Novated leasing works best when you have consistent, genuine private vehicle use — the more km you do, the more running costs flow through pre-tax. If you're in the outer suburbs or drive regularly for work or family, the numbers typically stack up well. Your millarX consultant can run your actual usage through the calculator.
What happens to my novated lease if I change jobs or my employer is based elsewhere in VIC?
If you change employers, your lease doesn't automatically end — you can either have your new employer take over the novated arrangement or switch to post-tax payments temporarily while you sort things out. millarX guides you through this process and won't leave you stuck. It's a common situation and there are straightforward options.