Are you a PAYG employee? Do you need a new car or are you currently paying off a car?
Did you know that you can pay off your car from your salary before it is taxed? This saves you $$ as you then have a reduced earning amount for the tax man to tax.
So if you currently need a new car or are paying off a car you need to look at this type of finance as you will save money.
We are finance brokers and work for you. This style of car finance for PAYG employees is called a Novated Lease and is offered by a number of financiers.
What is a novated lease?
A Novated Lease is a way in which you can obtain a vehicle plus all its running costs like fuel, insurance, registration, and maintenance but packaged through your employer as a ‘salary sacrifice’.
A portion is paid from your pre-tax salary, allowing you to turn your tax to your advantage.
Why choose a Novated Lease?
It is the cheapest and most cost-effective way to drive the car of your choice. Whether it’s a new, used or even your existing car and this can be for your personal use or even for a family member.
How does a Novated Lease work?
1. You obtain a quote for your new car and then contact us for a quote – 02 9453 0300
2. The financier sources the car of your choice including national discount rates
3. Your employer approves the payments
4. Financier arrange delivery of your new car
5. Your car and all its running costs are deducted from your salary in one easy payment
As the vehicle is leased, you do not own it on paper the lender does. The lender as they are a business then claims the GST component of the car purchase. This 10% GST component is then given to you as a discount!!!
So you have saved 10% off the normal purchase price already and had it purchased with bulk rate savings. That would be enough of an incentive for most right there, however, they are the savings even before you make payments for the car, fuel, rego, insurance and maintenance (which you will have to pay anyway) out of your before-tax income.
All in all this product is a very cost effective way to own a car if you are a PAYG employee. NOTE: your employer must be on board to enable you to use this option.
What are the benefits of a Novated Lease?
Benefits to the Employee/ Driver:
- Still one of the most tax effective methods of reducing taxable income
- Immediate savings: financier claims back the GST on the purchase price of the car. Service and Repairs, benefit from financier volume discounts.
- Peace of mind with financier 24/7 emergency roadside assistance and accident management
- Paperless quote and approvals process
- The convenience of a fuel card management service
- Lease term flexibility to match budget requirements
- Lifestyle benefits, *employees can select their vehicle of choice
- The convenience of a consolidated payment straight from payroll
- Employee budget management.
Benefits to the Employer:
- Cost neutral to the business offering offers a Salary Packaging Service whereby we will administer all billing cycles – weekly, fortnightly and monthly
- Eliminate FBT via the Employee Contribution Method (ECM)
- Reduction in Payroll Tax
- Paperless approvals process
- Can manage all novated queries on behalf of the Employer
- FleetPartners can integrate with the customer’s payroll
- A complete FBT and GST management system
- The car is not a business asset (i.e. if the employee leaves, the car/ lease follows them).
Not sure yet if a Novated Lease is the best option for you? Check out our other Lease Options or call 02 9453 0300 to discuss.
Check out our Commercial Finance Page for all our commercial finance options.
“ I had a seamless and trouble free end to end experience. The various people I dealt
with throughout the journey were professional, courteous and extremely helpful. Certainly a credit to the organisation, its reputation, and brand.”
Michelle, Business Relationship Manager, novated driver since March 2013
“ It’s always a pleasure dealing with the customer service team. Nothing is too hard
or too difficult for them. An absolute pleasure to deal with. Thanks, guys and gals.”
John, Human Resources Manager, novated driver since May 2014
“ I‘ve been very pleased with my novated car lease arrangement. I particularly appreciate the regular statements which enable me to see how I am tracking and the swift refund of expenses as required. Thank you.”
Andrew, IT Officer, novated driver since September 2012
“ I was very impressed when you were able to beat my quote that I obtained through
a different provider by over massive $90 a fortnight. This meant I would save over $2300 per year
which I was obviously over the moon about.”
Amy, Digital Marketing Specialist, novated driver since July 2014