By salary packaging your vehicle you will be able to make your lease repayments from your pre-tax income. This is done by way of a novated lease. A novated lease is an agreement between yourself, the financier and your employer. Your employer makes finance repayments on your behalf from your pre-tax income. This is now a commonly used method of financing a vehicle.

As you can save thousands of dollars each year by using this method it is an attractive way to finance. You also have the option to take out a fully maintained novated lease whereby the running costs of the vehicle are also deducted from your pre-tax income. Running costs of a vehicle include fuel, servicing, registration and insurance. You may also wish to salary package your partner’s vehicle to take further advantage of tax savings.

By taking out a novated lease you are not only restricted to using your vehicle whilst in employment with your current employer. Should you cease working for your employer your novated lease can be carried over to your next place of employment. Employers are happy to offer this method of financing to their staff as they do not carry any risk. Employers no longer need to offer company vehicles to their staff and carry depreciating assets on their books. Employees can purchase the car that they wish, rather than adhere to strict company policies.

To find out more about salary packaging speak to a Madison Finance representative today on 1300 887 967.