RBA Holds at 4.35%: Good News for Novated Lease Shoppers?
The RBA held the cash rate at 4.35% in June 2026. Here's what that steady rate environment means if you're considering a novated lease right now.
The Reserve Bank's Monetary Policy Board held the cash rate at 4.35% on 16 June 2026, according to the Treasury Ministers announcement. Treasurer Chalmers called it "a welcome reprieve" for mortgage holders — and while that framing is aimed squarely at homeowners, the rate hold has real implications if you're weighing up a novated lease.
Novated leases are funded through finance facilities, not your mortgage — but the broader rate environment shapes the cost of all consumer and fleet lending. When rates stop rising, lenders have less pressure to keep repricing their books upward. That's not a guarantee of cheaper finance, but it removes one of the key risks that made leasing decisions harder over the past two years.
What this means for novated lease customers
If you've been sitting on the fence about a novated lease — waiting for rates to fall before committing — this hold is a reasonable signal that the worst of the rate shock is likely behind us. The Treasurer's statement also referenced ongoing cost-of-living measures from the recent Budget, including tax cuts and cheaper medicines, which add modest household income relief on top of a stable rate environment.
For EV novated leases specifically, the FBT exemption for eligible zero and low-emission vehicles remains in place. Combined with a stable financing backdrop and the pre-tax salary packaging benefit, the structural case for using a novated lease to get into an EV hasn't weakened. What a rate hold does is reduce the uncertainty around what your residual finance costs might look like over a 2–5 year lease term — that makes budgeting more predictable.
One thing worth being clear about: a rate hold is not a rate cut. Finance costs are still elevated relative to the pre-2022 environment. The potential savings from salary packaging and the FBT exemption remain the dominant driver of value in a novated lease — not the interest rate environment on its own.
Common questions
Does the RBA cash rate directly affect my novated lease repayments?
Not directly, but it influences the wholesale cost of funds that lenders use to price vehicle finance. A rate hold means that pressure to reprice upward is removed, which is broadly neutral-to-positive for new lease agreements.
Is now a good time to lock in a novated lease given current rates?
That depends on your personal circumstances, the vehicle, and the lease term. The pre-tax salary packaging benefit and any applicable FBT exemptions are typically the bigger value drivers — we'd encourage you to run the numbers rather than time the market.
Does the EV FBT exemption still apply?
As at the date of this article, the FBT exemption for eligible battery electric and plug-in hybrid vehicles remains in force. Always confirm current eligibility with your employer and a licensed adviser, as legislation can change.
What did the 2026 Budget do for cost-of-living that's relevant here?
The Treasurer referenced tax cuts, cheaper medicines, and a temporary fuel excise reduction as part of the Government's cost-of-living response. These measures don't directly change novated lease mechanics, but they affect the overall household budget context in which you're making a leasing decision.
How is millarX different from other novated lease providers?
millarX is ACL-licensed and AFCA-registered, ranked #1 by Westpac for novated broking, and holds customer funds in segregated accounts. We aim for plain-English advice without the usual industry spin.