A novated lease is a great way to save tax!

How? A novated lease is commonly referred to as salary sacrifice. Reason being that the asset being purchased is financed from your pre-tax income. This can save you thousands of dollars in tax every year.

Why? Employers and employees both benefit from a novated lease. Employees can pay for their vehicle from their pre-tax income. A fully maintained novated lease also enables you to pay for the running costs, such as fuel and servicing from your pre-tax income, thus providing you with more tax savings. Employers benefit from a novated lease as it is a way of attracting new staff and retaining existing staff. It also eliminates the need to keep company cars on hand.

What? A vehicle, phone or laptop computer can be salary sacrificed. Some businesses even allow you to salary sacrifice your spouse’s vehicle.

When? A novated lease can be taken out at any time if your employer offers such incentive. If your employer does not offer a novated lease it is an easy process to enable them to do this if they so wish.

Where? Madison Finance is one of Australia’s leading novated lease specialists. For further information speak to one of our friendly staff on 1300 887 967.

At Madison Finance we believe in providing our customers with the best possible service. As part of our novated lease product we offer a free car buying service. Our staff consists of experienced car buying experts that have negotiated thousands of deals on every type of vehicle across Australia. We are familiar with rebates and incentives offered by dealers that otherwise you wouldn’t necessarily be aware of. We in turn pass these savings on to you.

When negotiating a vehicle price for you we obtain confirmation from the dealer of the price prior to deliver to avoid any price change. We believe in providing our customers with a convenient, professional and stress-free car buying experience. Our friendly and knowledgeable staff, are at your assistance to make your vehicle purchase a satisfying experience.

To arrange a novated lease you will need to get in contact with a novated lease specialist. A novated lease specialist can easily be found online. By using an online novated lease specialist you will have access to a novated lease calculator whereby you can calculate your repayments on a weekly, fortnightly or monthly basis.

Your novated lease specialist will be able to source your new or used vehicle, which is to be salary packaged, for you. Alternatively, you may wish to use your existing vehicle or purchase elsewhere. All correspondence between yourself, the financier and your employer will be arranged for by your specialist in an expedient manner.

To find out more about a novated lease or to arrange a non-obligation free quote contact a Madison Finance representative today on 1300 887 967.

It is quite common these days for business to offer salary packaging to their employees. It is a great way to retain staff and attract prospective employees. Salary packaging is whereby a piece of equipment such as a vehicle, laptop or phone is financed and the repayments are deducted from your pre-tax income. This is a tax effective method of financing work related items.

If you choose to finance your vehicle through a novated lease you have the option to salary sacrifice the repayments only. However you may opt to take out a fully maintained novated lease whereby the repayments and full running costs of the vehicle, such as servicing and fuel are taken from your pre-tax income.

To find out whether you qualify for a novated lease you need to be employed by a business that offers this service to their employees. The employer is responsible for making repayments from your pre-tax income on your behalf whilst in their employ. If your employer does not offer this service to you it may simply be because they are not aware of how easy a novated lease is to set up.

By providing novated leases it is of great benefit to employers and employees alike. As an employer it is an incentive for attracting new staff and retaining existing staff. You are not responsible for the vehicle or its repayments once the employee leaves your employment as the lease remains the responsibility of the employee.

As an employee it is a great way to enjoy tax savings by making your car repayments from your pre-tax income. You may also opt for a fully maintained novated lease which allows you to pay for the full running costs of your vehicle from your pre-tax income, such as fuel and servicing. If you change employment you needn’t change your car as the lease is still your responsibility and not that of your employer.