Novated Lease
If you are an employee seeking tax benefits, a Novated Lease may be a smart way to finance your vehicle. And if you are an employer, a Novated lease can be a simple, cost-effective way to add value to your employeesÂ’ remuneration packages.
Put simply, itÂ’s an agreement between the employee, employer and the financier that allows employees to lease a motor vehicle from their pre-tax salary. Running costs and Fringe Benefits Tax (FBT) can also be paid pre-tax and registration, insurance and on-road costs can be included as part of the package.
Therefore the employer pays the lease rentals direct to the financier. There are tax benefits to all parties under a novated motor vehicle lease.
Features of a Novated Lease
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Flexibility with your choice of vehicle |
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Fixed repayments and interest rates |
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Possible tax benefits even though your vehicle is used for private purposes |
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