Record New Businesses in June — What It Means for Novated Leasing
43,393 businesses registered in June 2025 — a record. If you're a new employer or employee, here's what novated leasing could mean for your pay packet.
Australia just set a new record for business registrations. According to a July 2025 release from Treasury Ministers, 43,393 new companies were registered in June alone — the highest single month since records began in 1999. More than 385,000 new businesses were created across 2025–26, also a record.
That's a lot of new employers — and a lot of new employees who probably haven't thought about how they're being paid yet.
What this means for novated lease customers
If you're joining a new business — or you're a founder who's just taken on staff — there's a good chance no one has sat down and explained novated leasing to you yet. That's normal. Most new employers default to straight salary and move on.
But novated leasing is a genuine, ATO-sanctioned way for PAYG employees to pay for a car using pre-tax salary. The arrangement sits between you, your employer, and a financier. Your employer doesn't carry the debt — they just process payroll deductions. That makes it low-lift for small and new businesses to offer, even if they're only a few months old.
With the post-Budget surge in new registrations, many of these businesses will be hiring. If your new employer hasn't heard of novated leasing before, that doesn't mean you can't have it — it means someone needs to explain it to them. That's something millarX can help with directly.
Common questions
Can a brand-new business offer novated leasing to its employees?
Yes. There's no minimum trading history required. As long as the employer has an ABN and runs payroll, they can participate in a novated lease arrangement. millarX handles the paperwork on both sides.
Does my employer take on any financial risk with a novated lease?
No. The finance obligation sits with you, the employee — not the employer. Your employer simply processes a pre-tax payroll deduction and passes it to the financier. If you leave the job, the lease follows you.
Is an EV still worth it under a novated lease in 2025?
Eligible electric vehicles can attract an FBT exemption under current legislation, which can materially improve the tax outcome of a novated lease. The specifics depend on your income and the vehicle — use our calculator or speak to the team.
My new employer has never done a novated lease before. Is that a problem?
It's common, not a problem. millarX works with employers through the setup process — most find it straightforward once the first one is done. We've onboarded plenty of businesses at the six-month mark.
What's the catch with novated leasing that people don't mention?
Fair question. The main ones: you need to be a PAYG employee (not a sole trader or contractor paying your own tax), the car has to be used at least partly for work or personal use under a valid arrangement, and if you leave your job without a new employer to take over the lease, you'll need to manage the residual yourself. It's not magic — it's a legitimate tax structure with real obligations.