Novated Lease

An employee lease offering a win-win for all parties.

A Novated Lease offers a win-win for you and your employees, with the lease payment being deducted from your employee’s pre-tax salary. As an employer, you are able to offer more competitive salary packaging options to attract the best candidates while your employee benefits from a lease that enables them to claim tax benefits.

If the employee leaves your company they take the vehicle and the lease is transferred to their next employer so your organisation isn’t left with an unused vehicle. What’s more attractive is that your employee can also include the daily operating costs associated with running the vehicle and make a contribution from post tax dollars.


Novated Lease Benefits for the Employer

  • Competitive salary packages with risk-free fleet vehicle options.
  • No risk of resale for your organisation (the liability is on the employee).
  • If your employee leaves, the lease is transferred to their next employer and the employee takes their vehicle with them.

 

Novated Lease Benefits for the Employee

  • Choose the car that suits you personally.
  • Control your vehicle maintenance.
  • Your vehicle is portable and goes with you should you change employer.
  • Lease payments are made from your pre-tax income offering tax benefits to you.
  • Operating costs such as fuel, servicing, tyres and insurance can be paid out of post tax-dollars utilising the Employee Contribution Method.

 

Value-Added Services

We offer a range of value-added services. Click here to find out more.


Benefits Employee Contribution Method over Fringe Benefits Method


Employer

  • Do not need to collect FBT throughout the year.
  • All drivers under the one method.
  • Streamlines processes.

Employee

  • Guaranteed cheapest method of leasing.
  • Removes Fringe Benefits Tax from Group Certificate.

 

What is required from the Employer?

  • The employer will be required to sign a deed of Novation on the employees finance agreement.
  • The direct debit will need to be set up for payments to be made from your organisation’s account.
  • Provide the facility to salary package for the employee.

 

What is required from the Employee?

  • Signed quote and finance application.
  • Certified Identification documentation to comply with Anti-Money Laundering legislation.
  • Be in employment at the time of commencement of the lease.

Phone 1300 729 322 to find out more about the value of a Novated Lease for your organisation today.

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