Novated Leasing allow you to pay for your vehicle and operating costs using pre-tax dollars - meaning you pay less tax. This reduces your taxable income, resulting in lower income tax and increased take-home pay.
Choosing an electric vehicle under a novated lease, below the Luxury Car Tax threshold, exempts it from fringe benefits tax. This exemption can lead to substantial savings over the lease period compared to car loans or outright purchases of a vehicle.
You can use your vehicle entirely for personal use and have the flexibility to select either a new or used vehicle according to your preferences. Whether you buy a car outright or opt for a novated lease, there's no difference in how you can use the vehicle.
All vehicle expenses, including fuel, insurance, maintenance, and registration, are bundled into one convenient payment. This setup helps in managing your finances efficiently without unexpected costs.
Novated leases can be portable, allowing you to transfer the lease to a new employer if they offer novated leasing. This flexibility enables continuity in vehicle benefits and financial arrangements when transitioning to a new job.
If you are not an employee on a salary part of a company or organisation, you will not be able to take the advantages of novated leasing a car.
Unfortunately, not all businesses offer novated leasing as a benefit to their employees. If your organisation does not offer novated leasing, you can get them to get in contact here.
Although you can transfer novated leases between jobs, this process hinges on whether the new organisation supports novated leasing. If your new employer does not offer novated leasing to employees, you will then have to take on the responsibility of managing the lease yourself.
Over the lease, the repayments do not fully cover the amount of the car. This leaves a residual value at the end of the lease that needs to be paid to fully own the car. However, this can be avoided by either selling the car at the end of the lease (covering costs with the sale) or renewing your lease.
Yes, the tax savings from novated leasing, especially on electric vehicles (EVs), typically result in financial benefits for most individuals. Obviously, everyones circumstances are different, and the best way to see how you can benefit is to get in contact.
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