What happens if I go on unpaid leave (e.g. maternity leave, extended leave)?
If you take any period of extended leave or unpaid leave before the novated lease expires, you will need to decide what is to happen about the salary sacrifice that has been negotiated. If it is decided to repudiate the novated lease, as provided for under the novation agreement, the finance company will send you a notice of termination and thereupon, you will personally be responsible for all future lease rentals plus GST and duty (post tax). You can of course to continue to make the lease and operating expense payments yourself during this period, but it is important to remember that once a vehicle is accessed under a novated lease it remains your property, regardless of unplanned circumstances that may occur.
Related Questions
- What happens if I take maternity leave, or I am in an unpaid leave situation due to extended sick leave or additional maternity leave?
- What happens if I miss a payment, go on leave without pay (LWOP) or unpaid maternity leave?
- What happens if I go on unpaid leave (e.g. maternity leave, extended leave)?
