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.