Record New Businesses in June — What It Means for Novated Leasing
ASIC recorded 43,393 new businesses in June 2025 — a record. Here's why that matters for employees considering a novated lease. Plain-English breakdown.
New data published by Treasury Ministers shows that 43,393 companies were registered in June 2025 — the highest single-month figure since ASIC records began in 1999 [Source 1]. A total of 385,716 businesses were registered across 2025–26, also a new high. According to the same release, more than 1.3 million new businesses have been created since mid-2022, and on average roughly 30 times more businesses are opening than closing each day.
That's a significant number. But if you're a PAYG employee wondering why a novated leasing website is talking about it, here's the connection: a large share of those new registrations are sole traders, contractors, and small employers — and novated leasing is one of the most overlooked tools available to employees of exactly these businesses, not just big corporates.
What this means for novated lease customers
Novated leasing isn't just for people working at ASX-listed companies. Any Australian employer can set one up — including the wave of small and medium businesses registered in the past financial year. If your employer hasn't offered it yet, the barrier is usually awareness, not eligibility.
For employees, the mechanics don't change based on employer size: pre-tax salary is used to cover lease and running costs, which reduces your taxable income. For electric vehicles, the FBT exemption introduced under the Treasury Laws Amendment (Electric Car Discount) Act means the tax benefit can be even more significant — making this a worthwhile conversation to have with your employer regardless of whether they're a five-person start-up or a 500-person firm.
With business formation at record highs according to the Treasury Ministers release [Source 1], there are more employers than ever who could offer novated leasing — but many simply haven't set it up. That's a gap worth closing.
Common questions
Can a small or newly registered business offer novated leasing?
Yes. There's no minimum employee headcount or business age requirement. Any employer with PAYG withholding obligations can facilitate a novated lease — it's a three-way agreement between you, your employer, and the finance provider.
Does the FBT exemption for EVs apply regardless of employer size?
Yes. The FBT exemption for eligible electric vehicles applies based on the vehicle and the employee's circumstances, not on how large or old the employer is. A business registered last month qualifies the same as one that's been operating for decades.
What if my employer has never heard of novated leasing?
That's common, especially with newer businesses. millarX can work directly with your employer to set up the arrangement — most employers are willing once they understand there's no cost or liability to them.
Is this only relevant post-Budget?
The Budget created some positive business sentiment, which is partly credited for the June registration spike. But the novated lease rules themselves haven't changed — this is about flagging the opportunity for a larger pool of employers and employees who may not have considered it.
How do I know if a novated lease is actually worth it for me?
It depends on your income, the vehicle you want, and whether your employer will participate. Potential savings are real but vary — use millarX's calculator or speak to one of our brokers for a numbers-based answer specific to your situation.