Have you ever wondered what a novated lease is? It is a fantastic way of financing a vehicle from your pre-tax income. Novated leasing is a common and popular method of financing. Employers and employees both benefit greatly from having such a financing program. Employers no longer need to keep company cars on hand and on their balance books as employees can finance their own car for company use. The employer can offer an attractive salary which is packaged so that the car finance payments are deduced from the employee’s pre-tax income. This is a great way of retaining staff and attracting new staff.

Employees benefit from salary packaging as they save tax. The car repayments are made from their pre-tax income, thus effectively increasing their take home pay. Alternatively, they may wish to take out a fully maintained novated lease, whereby the running costs of the vehicle are also deducted from their pre-tax income. Running costs of a vehicle include, fuel, insurance, registration, servicing and tyres. The tax savings run into the thousands and if they wish to finance their partner’s car through the salary packaging method the savings are further increased.

Speak to a Madison Finance representative today on how a novated lease will benefit you. Our experienced novated lease specialists are on hand to take your call on 1300 887 967.