What happens if I travel less than the kilometres estimated in my novated lease vehicle?
If you travel less than expected, it is likely that your operating costs will be less and your account will therefore be in credit. If you are due a refund at the end of the lease, this will be paid to you through your normal pay and taxed accordingly. Lower kilometres may also have an impact on the FBT Payable that applies to your vehicle – the impact could be either favourable or unfavourable, depending on your particular circumstances. In order to try to avoid these changes, it is best to provide as realistic an estimate as possible of the kilometres you are likely to travel each year when you request your novated lease quote.
