Novated leasing in Sydney
Honest novated leasing for NSW employees. Real stamp duty, FBT and running cost figures for Sydney drivers — not a sales pitch. millarX, ACL 569484.
Sydney has the steepest car ownership costs in the country — tolls, expensive parking, the highest petrol prices on the east coast, and stamp duty that punishes anything above $45,000 with a 5% rate instead of 3%. A novated lease doesn't make all that disappear, but it does pay most of it out of your pre-tax salary, which lands a 30-45% discount depending on your marginal tax rate.
This is a Sydney-specific guide — what your numbers look like as a NSW employee, what changed when the NSW EV stamp duty exemption ended, and how to think about the tolls / fuel question if you live anywhere west of Strathfield.
What's different about novated leasing in NSW
Stamp duty: NSW charges 3% on the first $45,000 of vehicle value and 5% on everything above — one of the harsher rates in the country. The NSW EV stamp duty exemption ended for vehicles ordered after 31 December 2023, so don't assume zero stamp duty on a new electric car any more.
Rego: NSW vehicle registration is income-tested for some pensioner concessions but for a working professional in Sydney metro you're looking at roughly $1,000-$1,100/year for a passenger vehicle — covered by your novated lease budget.
Tolls and fuel: novated leasing pays for fuel (or home electricity for an EV) out of your pre-tax salary, which is huge if you commute from the M4/M5/M7 catchment. Tolls are not packaged — they're after-tax regardless of how you finance the car. So the savings calculus in Sydney is different to other capitals: the petrol/electricity saving is bigger because Sydney prices are higher, but the toll burden isn't reduced by leasing.
Major Sydney employers with novated leasing: NSW Health (all districts), Sydney Trains, NSW Police, CBA, Westpac, Macquarie, QBE, Optus, Telstra, AMP, City of Sydney, City of Parramatta, University of Sydney, UTS, UNSW. Most large Sydney employers have novated leasing already approved through Maxxia, SmartGroup, RemServ or — increasingly — direct providers like millarX.
Sydney novated leasing FAQ
Does the NSW EV stamp duty exemption still apply?
Not for new orders. The NSW Government ended the EV stamp duty exemption for vehicles registered after 31 December 2023. If you already have an EV registered before that date, your existing concession stands. For new orders today, stamp duty applies at the standard NSW rate — but the federal FBT exemption on EVs under $91,387 driveaway is still alive, which is the much larger saving.
Can I claim tolls on my novated lease?
No. Tolls aren't a deductible vehicle running cost under FBT rules, so they're paid after-tax regardless of who finances your car. This is the same answer at every novated leasing provider — anyone telling you otherwise is wrong.
Sydney has expensive parking — does the lease cover that?
Workplace parking is sometimes a separate FBT exemption for employer-provided parking but it's not part of a personal novated lease. The lease covers vehicle running costs (fuel, electricity, insurance, rego, services, tyres) — not parking, tolls, or fines.
If I work in Sydney but my employer is registered in Melbourne, what happens?
The lease is based on your employer's payroll, not your address. You register the vehicle in your home state (NSW) and your stamp duty / rego follow NSW rules. Your salary packaging and FBT follow your employer's setup. We see this often with Sydney workers at Melbourne-headquartered companies — it works fine.