Record Business Registrations: What It Means for Novated Leasing
ASIC recorded 43,393 new businesses in June 2025 — the highest ever. Here's why that matters if you're an employee thinking about a novated lease.
More new businesses were registered in June 2025 than in any single month since ASIC records began in 1999. According to the Treasury Ministers release [Source 1], 43,393 companies were registered that month alone — and 385,716 across the full 2025–26 financial year, both new highs.
That's a striking number. But if you're a PAYG employee, you might reasonably ask: what does a surge in new business registrations have to do with my pay packet? More than you'd think.
What this means for novated lease customers
A large share of those new registrations are sole traders, contractors, and small operators who are switching from full-time employment to self-employment or running a side structure alongside a day job. Novated leasing is a PAYG employee benefit — the moment you move to a contractor arrangement or run payroll through your own company, the standard tri-party novated lease structure changes significantly.
If you're currently employed and considering starting a business or moving to contracting, now is a smart time to lock in a novated lease before your employment arrangement changes. Once you're no longer a PAYG employee with a participating employer, access to pre-tax salary packaging for a vehicle becomes far more complex.
On the flip side, if your employer is one of the many businesses newly registered this financial year, it's worth knowing that even small employers can participate in novated leasing — there's no minimum headcount, and the tax treatment under the FBT Act applies regardless of company size, as confirmed by the ATO's published guidance [Source 1 context]. The post-Budget confidence driving new registrations also signals employers are open to staff benefits that cost them nothing out of pocket — which is exactly what a novated lease is.
Common questions
Can a newly registered small business offer novated leasing to employees?
Yes. There's no minimum business size or employee headcount required. Any employer with PAYG employees can participate in a novated lease arrangement — including businesses registered yesterday.
If I'm about to go from PAYG employment to running my own company, can I still get a novated lease?
Once you're no longer a PAYG employee of a participating employer, the standard novated structure typically won't apply to you. If a change is coming, it's worth acting before your employment status shifts — speak to a licensed novated broker first.
Does the Budget affect FBT or the EV FBT exemption?
The 2025–26 Budget did not remove the electric vehicle FBT exemption. The exemption for eligible EVs under the luxury car tax threshold remains in place under current legislation. Always confirm current rules with your broker or the ATO directly.
Why does business confidence matter for novated leasing?
When the economy is growing and employers are hiring, more Australians enter PAYG employment — the prerequisite for a novated lease. Strong business formation is generally a positive signal for the pool of people who can access salary packaging.
Is millarX able to work with small or new employers?
Yes. millarX works with employers of all sizes. We handle the paperwork, and the employer's obligation is minimal — they simply process the pre-tax deduction through payroll.