A Novated Lease Might Be Perfect You
A novated lease is suitable for employees who want to include a motor vehicle as part of their salary package. Changes to Fringe Benefit Tax mean that a novated lease may not be the best option for every employee which is why you should speak to our experts at FinanceNEXT.
Firstly the employer needs to offer salary packaging as an option for employees to qualify. Secondly, the car needs to be used predominantly for business use, or the employer needs to be 100% FBT exempt. Talk to us to see if a novated lease is suitable for you.
A novated lease may mean you can access tax savings and can package the running costs as well as other range of benefits.
Tax Benefits To Be Had With A Novated Lease
Salary packaging, using a novated lease, can offer a tax advantage to employees, but it depends on several things such as the type of vehicle, kilometres travelled annually, FBT method used, employee’s salary and all the fees, charges and lease interest rate charged by the Nominee.
Novated Leasing For Pre Tax Benefits
This could be the answer if you are looking at employee benefits, salary packaging or a tax effective way of financing your car.
Why Novated Leasing?
A novated lease is an agreement between the employee, the employer and the finance company. The employer takes responsibility for the lease but the lease payments are made from the employees pre-tax pay and they get the use of the car.
Here’s what we can offer:
- Flexible lease terms from 12-60 months
- Car running costs are paid in pre-tax dollars, meaning potential tax savings
- Fixed interest rate for the life of the lease
- Fixed repayments for the life of the lease
- Lower interest rates than our competitors
- Finance 100% of the purchase price (subject to credit approval)
- Financed amount is less GST – GST on the purchase price of the vehicle is claimed back by the finance provider on your behalf. This lowers the amount financed to the purchase price minus GST
- Portable – a Novated Lease can be re-novated from one employer to the next (subject to the new employer’s acceptance)
- Choice of car to best suit your needs
- Speed of approval means you could be in your new car within 24 hours