By participating in the REWARDS™ fully maintained novated lease program, your monthly lease rental is deducted from your gross salary (before PAYG tax and the Medicare Levy) resulting in lower income tax, and therefore, a higher net salary.
All operating costs including fuel, servicing, tyres, registration and insurance can be included in the monthly rental, which is incorporated in your salary package and paid for by your employer on your behalf.
Reduce income tax and take advantage of:
- New or Used Cars - your choice of new or used vehicle.
- GST Savings - no GST on purchase price and operating costs.
- Minimal Paperwork - see how short and easy our application form is.
March 10th, 2010 in Novated Lease
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.
March 2nd, 2010 in Novated Lease
Who would have thought that by taking out car finance you could increase your take home pay. Well it is true! By financing your car by way of a novated lease your car repayments are taken from your pre-tax income. This method is commonly known as salary sacrifice. By salary sacrificing you can instantly increase your take home pay. You could literally save yourself thousands of dollars each year. By using this same method to finance your partner’s car you will further increase the income for your household.
Salary sacrificing also allows you to pay for the running costs of your vehicle from your pre-tax income. Running costs include, registration, insurance, fuel and servicing. On an annual basis these costs are expense so to have them deducted from your pre-tax income is a great benefit. To find out more about the benefits of salary sacrificing speak to a Madison Finance Representative on 1300 887 967.
February 21st, 2010 in Novated Lease
Are you thinking of taking out a novated lease? Whether you are an employer or an employee there are benefits to both parties. It is well worthwhile looking into the advantages of salary packaging. A novated lease is the agreement that exists to enable finance payments to be deducted from pre-tax income.
An employee benefits by taking part in a novated lease program in a number of ways. By salary packaging their vehicle they will instantly increase their take home income. As finance payments are taken from their pre-tax income, the amount of tax paid on the annual salary is reduced, thereby providing the employee with an increased income. A novated lease program also enables the employee to take out a fully maintained novated lease. This is when the running costs of the vehicle, such as fuel, servicing, registration and insurance are paid from their pre-tax income. This literally saves the employee thousands of dollars in tax each year. The employee may wish to salary package their partner’s vehicle to further increase the household income.
Apart from tax savings there are added benefits to salary packaging a vehicle. By salary packaging your own vehicle there is no need to conform to the restrictions of a company vehicle. You can choose the vehicle you wish and drive it during business and after hours.
An employer benefits by offering salary packaging as it helps to attract and retain staff. There is no need to keep company cars on the books which are a depreciating asset. There is also no need to deal with the headache of servicing, registration, insurance and upkeep of stock.
To find out more about our novated lease program speak to a Madison Finance representative on 1300 887 967.
