Short answer: yes, absolutely. In fact, dual-cab utes are the single most popular vehicle category on novated leases across Australia - and for good reason.
If you're an employee who drives a ute for work and personal use, or a business owner exploring options for your team, this guide covers everything you need to know about how novated leasing works specifically for dual-cab utes, what the numbers look like, and which models make the most financial sense.
Why Dual-Cab Utes Are Perfect for Novated Leasing
Not all vehicles are created equal when it comes to novated leasing. Some vehicles attract Fringe Benefits Tax (FBT) that significantly erodes the tax saving. Dual-cab utes are different - and the reason comes down to how the ATO classifies them.
1. They Are Almost Always FBT Exempt
The ATO classifies dual-cab utes as commercial vehicles rather than passenger cars, provided they have a payload capacity of one tonne or more. This distinction matters enormously for the cost of a novated lease.
For passenger cars, an employer providing private use of a vehicle must either pay FBT on the taxable value of that benefit, or require the employee to keep a detailed logbook. For dual-cab utes used primarily for work with only minor personal use, the FBT liability is effectively zero - even when the employee drives the vehicle home every night and uses it for reasonable personal errands on weekends.
This means the employer's cost of facilitating a novated lease on a dual-cab ute is minimal - which is why approval rates from employers are extremely high for ute packages.
2. All Running Costs Can Be Bundled
One of the most financially compelling aspects of novated leasing a dual-cab ute is the ability to include all running costs in the pre-tax payment. Fuel, tyres, servicing, registration, insurance, and roadside assistance can all be bundled into the monthly package - meaning every dollar spent on keeping the vehicle on the road comes from pre-tax income.
For a tradie or a worker covering significant kilometres, fuel and servicing costs alone can run to $5,000–$10,000 per year. Having those costs paid from pre-tax income adds meaningfully to the total tax saving over the lease term.
3. Private Use Is Unrestricted for the Employee
Unlike some commercial vehicle arrangements that require documentation of business versus private use, a properly structured novated lease on a dual-cab ute allows the employee to use the vehicle freely - for work, for personal errands, for weekends away - without triggering an FBT liability, provided the vehicle's primary purpose remains commercial use.
This makes dual-cab utes particularly attractive as a novated lease vehicle compared to passenger SUVs or sedans, where private use restrictions or FBT calculations can complicate the arrangement.
4. Full GST Recovery
If the employer is registered for GST, the full GST component of the vehicle's purchase price and running costs is claimable through the lease arrangement. On a $75,000 dual-cab ute, that's more than $6,800 in GST that the employee effectively never pays - a saving that compounds on top of the income tax reduction from pre-tax payments.
The Most Popular Dual-Cab Utes for Novated Leasing in Australia
Almost any dual-cab ute with a payload of one tonne or more qualifies. The most commonly novated utes in Australia right now include:
Toyota HiLux - one of Australia's best-selling vehicle and the most novated ute in the country. Strong resale value at the end of the term makes it one of the most cost-effective options over a full lease cycle. The SR5 and Rogue variants are particularly popular for their equipment levels.
Ford Ranger - another best-selling vehicle in Australia and a strong novated lease choice. The Ranger's towing capacity, technology features, and extensive dealer network make it a practical and popular option across trades and corporate fleets.
Isuzu D-Max - particularly popular with tradies and construction workers for its payload capacity and reliability. Strong resale values make it competitive over a full 5-year lease term.
Mitsubishi Triton - a cost-effective option at a slightly lower price point than the HiLux or Ranger, which can reduce the fortnightly impact on take-home pay and improve the total saving percentage.
Mazda BT-50 - shares platform credentials with the Isuzu D-Max and offers a compelling combination of price and features for cost-conscious employees.
Nissan Navara - a reliable workhorse with a strong service network across regional and metropolitan Australia, making it a popular choice for workers who travel extensively.
Volkswagen Amarok - the premium option in the dual-cab segment, particularly popular with corporate employees and business owners who want a more refined driving experience alongside the FBT and tax advantages of a commercial vehicle classification.
GWM Cannon and GWM Ute - increasingly popular as a cost-effective entry point, particularly for employees who want to maximise the take-home pay impact of their novated lease by choosing a lower vehicle price point.
What the Numbers Actually Look Like
Here's a realistic example based on current tax rates and vehicle costs:
The employee: A worker earning $120,000 per year who needs a dual-cab ute for work and personal use.
The vehicle: A $75,000 Toyota HiLux SR5 fully loaded, with all running costs included over a 5-year lease term.
The result:
- Fortnightly impact on take-home pay: approximately $450–$520
- Total tax and GST saved over the 5-year term: $50,000+
- Effective vehicle cost: a late-model, fully equipped HiLux for roughly what a comparable used model would cost purchased outright after tax
Put simply - if you're paying income tax and you drive a dual-cab ute, you are almost certainly paying more than you need to unless your vehicle is novated. The combination of pre-tax payments, GST recovery, and the FBT commercial vehicle exemption stacks up to a saving that's difficult to replicate through any other legitimate tax strategy available to an individual.
Common Questions About Novated Leasing a Dual-Cab Ute
Does my employer have to be a big company to offer novated leasing?
No. Any Australian employer - including small businesses and family companies - can facilitate a novated lease. The process is straightforward: the employer agrees to deduct the lease payment from your pre-tax salary and pass it to the finance company. Most employers approve novated leasing requests readily because it costs them nothing and is often a genuine staff retention benefit.
Can I get a ute with a canopy, toolbox, or tray fitted and include those in the lease?
Yes - accessories and fit-outs can typically be included in the novated lease package, meaning they're also covered by the pre-tax payment and GST recovery. This is particularly valuable for tradies who need a working vehicle fit-out rather than a stock standard ute off the lot. Specific inclusions depend on the novated lease provider, so confirm the details before signing.
What if I change jobs during the lease?
The lease transfers - or "novates" - to your new employer. If your new employer also offers novated leasing, the arrangement continues without interruption. If they don't, you make the payments from your own after-tax income until you find a new employer who participates, or you refinance the arrangement. It's important to understand this risk before entering a novated lease, particularly if your employment situation is uncertain.
Can I choose any colour and specification?
Yes - one of the genuine advantages of a novated lease over a traditional company car arrangement is that you choose the vehicle entirely. Make, model, colour, trim level, and options are all your decision, within the budget you've agreed on for the lease.
Is a novated lease or a company fleet vehicle better for me?
This depends on who is providing the vehicle and why. A novated lease is an employee-driven arrangement - you choose the vehicle, you benefit from the tax saving, and the vehicle follows you if you change jobs. A company fleet vehicle is employer-controlled - the business chooses and manages the vehicle as a business asset.
For employees who want control over their vehicle and want to capture the tax benefit personally, novated leasing is typically the better option. For businesses that need to control a fleet of work vehicles - standardise models, manage maintenance, and scale up or down - a commercial fleet arrangement delivers better outcomes at the business level.
If you're a business owner thinking about the fleet side of this equation, our commercial fleet finance page explains how fleet leasing works for businesses. And our comparison of fleet leasing vs buying covers the full financial picture for business-owned vehicles.
A Note on Fleet Leasing Australia and Novated Leasing
Fleet Leasing Australia specialises in commercial fleet leasing for Australian businesses - helping companies across trades, construction, transport, and professional services acquire and manage their vehicle fleets efficiently.
Novated leasing for individual employees is not a service we currently offer directly. If you're an employee looking to novate a dual-cab ute, we'd recommend speaking with a dedicated novated lease provider or your employer's HR team to get the process started.
However, if you're a business owner - or a tradie running your own company - and you're exploring the most tax-efficient way to put a ute in your hands as part of your business structure, a commercial fleet lease may achieve a very similar financial outcome. Book a consultation and our team can walk you through what's available for your specific situation.
You can also browse our full vehicle range or explore vehicles by body type to see what's currently available.
Frequently Asked Questions
What payload capacity does a dual-cab ute need to qualify for the FBT exemption? The ATO requires a payload capacity of one tonne or more for a vehicle to qualify as a commercial vehicle under the FBT rules. Almost all dual-cab utes sold in Australia meet this threshold, but it's worth confirming the specific payload rating of the vehicle you're considering before finalising the arrangement.
Can I novate an electric ute? The Australian Government's EV FBT exemption applies to battery electric vehicles and plug-in hybrid electric vehicles below the luxury car tax threshold. As electric utes enter the Australian market - including models from BYD and others - they may qualify for this exemption, which effectively eliminates FBT entirely regardless of private use. Speak with your accountant about current eligibility requirements.
How does the residual value work at the end of a novated lease on a ute? At the end of the lease term, you have three options: pay the agreed residual value and own the vehicle outright, refinance the residual and enter a new lease, or hand the vehicle back. Dual-cab utes - particularly the HiLux, Ranger, and D-Max - have strong residual values compared to many passenger vehicles, which can make the end-of-term options more financially attractive.
Can I include a towbar, bull bar, or lift kit in the novated lease? Accessories added at the time of purchase can typically be included in the lease package. Accessories added after delivery may need to be treated separately. Confirm with your novated lease provider exactly what can be included before finalising the vehicle specification.
What's the maximum vehicle value I can novate? There's no strict maximum, but vehicles above the ATO's luxury car tax threshold may have a different GST treatment that reduces the tax saving slightly. For most dual-cab utes currently on the market, this is not an issue - but for premium variants of the Amarok or Silverado, it may be worth checking the specific threshold before committing.
This article is intended as general information only and does not constitute financial or tax advice. Novated leasing arrangements involve complex tax rules that vary based on individual circumstances and employer participation. Please consult a qualified accountant, tax adviser, or novated lease specialist before entering any salary packaging arrangement.
