5 reasons to get a novated lease

Reduce your income tax

By salary packaging your next vehicle with a novated lease you can significantly reduce your income tax payable. The finance repayments along with your running expenses such as fuel, servicing, comprehensive insurance, roadside assistance, registration and CTP can be packaged into one monthly lease payment. The lease payment can be deducted from your salary primarily pre-tax. The pre-tax deduction / salary sacrifice amount will reduce your taxable income and in turn reduce your income tax payable.

 

No GST on purchase price of the vehicle

The largest GST saving from day one of your novated lease is avoiding GST on a new (or used) vehicle from a dealer (or from any GST registered business). As title of the vehicle belongs to the financier, they will pay the dealer (or GST registered business) the GST amount and claim it back as an input tax credit. They do not pass the GST charge on to the customer so therefore your new vehicle will be GST free. Your employer will also claim back a portion of the lease associated GST as an input tax credit. This means that you will pay less GST on your running costs such as fuel, servicing, tyres, registration, roadside assistance, CTP and comprehensive insurance.

 

Fleet discounts on vehicle purchase price

By purchasing a vehicle through a fleet management company you will gain access to fleet discounts that are usually reserved for big business. We can source your vehicle of choice at the best possible price through our national dealer network. You will also have access to a raft of aftermarket accessories which can be incorporated into your finance and salary package arrangement.

 

Convenience

Not only is it a great way to save on income tax and GST, it’s also a fantastic way to budget for future expenses. All of your running expenses will accrue in an account so that when it comes time to service your vehicle, change tyres or renew your registration, the money will be there to pay for it. You will also be supplied with a fuel card that you can use to fill up at the bowser. Convenient and tax effective.

 

Fleet Buying Power

We can save you thousands on the vehicle price through our dealer network. Due to the volume of business that we put through our dealers, we have access to fleet pricing that’s usually reserved for big business. You can be assured that your purchase price will be much better than the average retail customer’s off the street.