A Novated Lease is a very simple way of paying for your car before tax. The payment of the car expenses is the only thing that is any different from you paying for all of your own vehicle running costs.
With a Novated Lease, you Sacrifice a portion of your salary back to your employer. Your employer then transfers all of this money to the Salary Packaging Provider, who uses this money to pay and manage all of the running costs including the lease, fuel, tyres, registration, insurance and schedule services. In a majority of cases, you will never have to pay directly for any of these expenses.
BUT WHAT IF I HAVE PAID FOR ONE OF THESE RUNNING COST EXPENSES?
On the odd occasion when you pay for one of the running costs with your own money, you can submit the tax receipt for a full refund. The process is very simple;
- COMPLETE A CLAIM FORM – Some Salary Packaging providers have online forms others have a claim form that can be printed, completed and scanned back for payment.
- ATTACH THE TAX INVOICE – It is very important to keep the Tax Invoice from the transaction and not just the printed receipt. The Tax Invoice contains all of the relevant information the Salary Packaging provider requires to back up the claim you are making and also provide proof to the ATO that this was a legitimate expense on your vehicle.
- Submit both the claim form and the receipt to the Salary Packaging provider. Vehicle Solutions complete a daily reimbursement run. This means you will have the money back in your account within 24hrs. Please make sure you keep us updated as to any changes in your banking details. This will prevent any delay in returning the funds.
Vehicle Solutions Australia claim form can be found on our website
Before making any claims it is a good idea to check the balance in your Novated Lease account. You can login to your account and follow the prompts. This online account portal will show the money coming into your account from payroll payments and also the amounts being debited for the lease, fuels and other running costs.