Before explaining how to calculate novated lease FBT it is important to understand what FBT is and why the Government charge it. FBT is Fringe Benefits Tax. FBT is generated when an employer provides a benefit to an employee in lieu of salary, the ATO regards these payments as fringe benefits. In this context, by… Read more
Novated Leasing comes in several forms, however, a vast majority are termed “fully maintained”. Fully maintained novated leasing does not just refer to the vehicle being maintained or serviced it actually refers to the fact that the Novated Leasing company will maintain a register on every running cost that is included with the lease hence… Read more
Vehicle discounts and Novated Leasing – Every dollar counts. Vehicle discounts and Novated Leasing go hand in hand. When you finance a vehicle it’s not hard to understand, that the cheaper the vehicle price, the lower the finance payments. However, to often these days most of us have very busy lives and don’t have the time… Read more
The residual value is simply the final finance payment that represents the value of the vehicle at the end of the lease. A Novated Lease needs a residual value because you have novated the ownership (payments of the lease and running costs) to your employer which allows you to save tax. By novating the ownership… Read more
A Novated Lease for car choice is one of the most important decisions to make in the process, and worth spend a little more time on to get it right. This decision will not only save you money over the lease term buy is crucial in making you money at the end of the lease…. Read more
Yes, every Novated Lease has a component of GST savings. There are several components to the way GST is handled on a Novated Lease and this article will assist you in maximising the GST you get back. Firstly, every vehicle sold in Australia by a business (dealership or company vehicle) has a component of GST… Read more
Australia’s financiers have a very good record in lending money, we have a very robust mechanism for reporting on peoples credit history and importantly checking to make sure an individual is able to borrow and repay the money they require. Leasing companies are no different to most other lenders, they collect basic information to make… Read more
Most Novated Lease vehicles are established as fully maintained contracts. This means that a majority of the vehicle running costs are included in the agreed budgets. Running costs include; Finance (Lease), fuel, tyres, schedule services, registration and insurance renewals every year. To pay for these items Vehicle Solutions Australia provide a fuel card that can… Read more
Novated Leasing or a car loan is one of the most common questions we get asked. Vehicle solutions can provide both options however where an employer provides Novated Leasing as an option we believe it represents a far more affordable and convenient method of paying for your car and running costs. Firstly to view the… Read more
The secret to Calculate a Novated Lease is to get accurate meaningful data and information prior to doing the basic tax calculation. The figures you will need include car price, annual salary, Km’s travelled each year, lease term and comprehensive insurance figure. Each of these items requires it’s own calculations; The vehicle drive away price… Read more