Smartgroup has reported a year of strong financial and operational performance in 2024, with novated leasing volumes, customer numbers and electric vehicle (EV) uptake reaching record levels. For fleet and leasing decision-makers, the results offer an insight into the ongoing transformation of the novated leasing sector, underpinned by digital investment and favourable government policy.
Record Results Across Key Metrics
The employee benefits and fleet solutions provider achieved revenue of $305.8 million in 2024, up 22% on the previous year. EBITDA rose 18% to $118.7 million, while NPATA climbed 15% to $72.4 million. Operating cash flow conversion was 108% of NPATA, and total dividends of 48.5 cents per share represented 90% of NPATA.
Customer and lease growth supported these results, with active salary packaging customers growing by 12% to 445,000 and novated leases under management rising 22% to 74,300 vehicles. Smartgroup now manages over 106,000 vehicles across its novated and fleet operations.
Fleet vehicles under management grew 6% to 32,300, including 750 vehicles in its self-funded fleet pilot, a program designed to increase capabilities and meet client demands with more flexibility.
EV Growth Accelerates Under Government Incentive
The Federal Government’s Electric Car Discount Policy has played a significant role in boosting EV uptake within Smartgroup’s customer base. Since its introduction in late 2022, EVs have gone from 11% of new vehicle orders in June 2022 to 44% by December 2024.
By the first quarter of 2025, EVs (including plug-in hybrids or PHEVs) accounted for 51% of all new vehicle orders. PHEV orders surged 177% year-on-year in the March quarter, driven by the end of the FBT exemption on PHEVs in April 2025.
Although the policy now only applies to battery electric vehicles, the transition period helped raise awareness of novated leasing and supported demand across all vehicle types. Internal combustion engine (ICE) vehicles still comprised 49% of Q1 2025 orders, reflecting the continued relevance of novated leasing for a broad mix of vehicles.
“The increase in EV sales since the policy’s implementation underscores its effectiveness,” Smartgroup said in its AGM presentation, linking the policy to both environmental benefits and business growth.
A Focus on Digital and Customer Experience
Smartgroup spent much of 2024 implementing the first full year of its Strategic Priorities, which aim to simplify operations, enhance the digital journey, and deliver scalable growth.
The company consolidated its brands from six to four, launching a new digital home at smart.com.au and transitioning clients and users to a simplified Smart-branded experience. This included the consolidation of Smartleasing and Smartsalary under the single ‘Smart’ brand.
An upgraded Car Leasing Portal helped drive greater digital engagement and conversions, offering customers faster, more intuitive access to novated leasing quotes, comparisons, and applications. Yield increased 7% in 2024, driven by a higher share of new car leases and improved supply chain management.
In addition, Smartgroup launched AI-enabled multilingual chat support and automated customer service tools that contributed to a 10% increase in packages managed per operations employee.
These efforts led to a Net Promoter Score (NPS) increase of more than 10% and helped the business more than double new client wins in 2024. Notably, the number of salary packaging customers increased by 49,000, driven by both existing clients and new business.
Continued Strength in Salary Packaging and Government Clients
Smartgroup’s business model continues to centre around strong recurring revenue streams, supported by long-term contracts in key sectors such as government, health, education, and not-for-profit organisations.
In 2024, the company transitioned the South Australian Government contract and was later added to the Tasmania Government and Transport for NSW leasing panels. New client wins in early 2025 included Monash Health and Grampians Health in Victoria, along with multiple corporate customers.
The addressable market remains significant, with Smartgroup estimating that 2.3 million Australians employed by existing client organisations are eligible for salary packaging—of which only 541,000 currently use the service.
In the corporate segment, Smartgroup noted that while just 3% of its salary packaging customers are corporate employees, they represent over 15% of its potential user base, creating clear room for expansion.
The company is also pursuing small and medium business customers through its Autopia brand, which offers a simplified novated leasing proposition for employers without in-house fleet programs.
ESG and Inclusion Recognition
Smartgroup’s environmental and social governance (ESG) efforts also received strong recognition. In 2024, Scope 1 emissions were reduced by 15% and Scope 2 emissions by 43%. The company was awarded an ESG Risk rating of 11.5 by Sustainalytics, placing it in the 95th percentile globally. It also retained its Employer of Choice for Gender Equality citation from the Workplace Gender Equality Agency.
The Smartrewards platform—part of Smartgroup’s expanded benefits offering—was accessed by more than 30,000 users in 2024. Partnerships such as the one with Intellihub for solar, battery, and home charging further reinforced Smartgroup’s commitment to supporting a low-emissions future.
Outlook for 2025
In the March quarter of 2025, average monthly revenue rose 10% compared to the same period in 2024 and remained steady versus the second half of 2024. New novated lease orders were up 21% year-on-year, with a 9% rise in total settlements.
Yield also improved 4% year-on-year, supported by a higher proportion of new car leases and better vehicle availability. The future revenue pipeline stood at around \$12 million as of March 2025, well above pre-COVID levels.
CEO Scott Wharton said that Smartgroup will continue investing in technology and digital capabilities in 2025, with a planned capex spend of $11–13 million. Key partnerships formed in early 2025, including those with Intellihub’s Enreal platform and BMW Financial Services, are expected to drive additional value.
Looking ahead, Wharton said the focus will be on executing the company’s strategy, improving operating leverage through cost management, and deepening relationships with clients. While the business is monitoring international factors such as tariffs and interest rates, it remains cautiously optimistic about continued growth in novated leasing and salary packaging services.
For Fleet Managers and Procurement Teams
The growth in EV novated leases—now representing more than half of new vehicle orders—highlights how policy, price, and digital ease-of-use are driving change. The combination of Smartgroup’s simplified customer journey, increased EV supply, and novated leasing tax benefits continues to build confidence in EVs as fleet and employee benefit options.
Fleet Managers working with Smartgroup or considering a new novated partner should also note the self-funded fleet pilot expansion and the ongoing investment in digital tools that reduce complexity and support scale.
As vehicle supply continues to stabilise and the cost of living pressures persist, Smartgroup’s latest results suggest demand for salary packaging and leasing is not just holding—but growing.
