PoliceTax Video Guide

Got a novated lease? Can you claim it on tax?

Watch the PoliceTax novated lease video explaining why salary packaging and an employee tax deduction are separate questions for Australian police officers.

A novated lease and a personal work-related car deduction are not the same thing. Check who paid the cost, how it was packaged and whether any unreimbursed work use remains.

What this video means at tax time

A novated lease is commonly administered through an employer and salary-packaging arrangement. That arrangement must be reviewed separately from any personal deduction claim so the same cost is not claimed twice or claimed after reimbursement.

Questions to answer before claiming car costs

Who incurred the cost?

Review the lease and payroll records to understand which costs were packaged, reimbursed or paid personally.

Was the travel work-related?

Ordinary travel between home and a regular workplace is generally private. Genuine work trips require a clear connection to employment duties.

Could the claim duplicate a benefit?

Do not claim an amount again where an employer, packaging provider or reimbursement has already covered it.

Records to bring

  • Novated lease agreement
  • Salary-packaging statements
  • Payslips and reimbursements
  • Logbook or kilometre records where relevant

Source: ATO motor vehicle and car expense guidance.

Frequently asked questions

Does having a novated lease automatically create a tax deduction?

No. The lease and salary-packaging treatment do not automatically establish a separate personal deduction. Your payment, reimbursement and work-use facts need review.

Is driving from home to the station deductible?

Ordinary home-to-work travel is generally private, although different rules can apply to particular work-related travel circumstances.

Want us to check your circumstances?

These videos are general information. PoliceTax can review your records and tax position before you lodge.