Employers across Australia including all Federal, State and Local government agencies provide their employees with the benefit of doing a Novated Lease on a car. Even the ATO (Australia Taxation Office) have a significant number of employees doing Novated Leases. The reasons for this are simple; you save thousands a year in tax and the process is one of the most simple, convenient ways of running your vehicle.
A Novated Lease allows you to pay for the finance (Lease) and all running costs before tax from a deduction out of your weekly, fortnightly or monthly pay. This deduction is used by your employer to pay for all running costs on your vehicle. Which means you pay no tax on the deduction before tax and your employer claims and passes on the benefit of the GST. People who don’t salary package pay the full tax have no GST savings and still pay for all of the same running costs, but after tax.
The main comment we get from employees on a Novated car Lease is about the convenience. No more big car bills or finding cash for fuel. We give you a handy fuel card that can be used for fuel, tyres, servicing, windscreens and batteries and the monthly account comes back to us for payment. When that big registration and insurance renewals come due simply send them to us for payment.
The small deductions from each pay go into a salary packaging account in your name. As a Salary Packaging provider, we simply draw on this account to pay the running costs as they fall due.
What happens if I don’t spend all the money in the account?
That money is always yours, the Salary packaging provider can only pay the budgets agreed upon in the documents signed by all parties at the start of the Novated Lease. Any balance in the account can always be paid back to you through your employers payroll system.
What happens if I want to change one or all of my car running cost budgets?
Peoples lives change all the time. For example you may move house during the Novated Lease and now use your car far less than before. We can drop your running cost budgets immediately which reduces the cost of the deductions. Or you may find you are driving more km’s than expected and you can always increase the budgets which in turn increase the cost but also increases the tax savings.
How can I get an accurate quote on a Novated Lease?
Use our Novated Lease calculator, it’s free and we don’t ask for your personal details. This means you can do as many quotes as you like on as many different car prices and salary levels you need.
Can I get a Fleet Discount on a new car of my choice?
Yes, Vehicle Solutions is listed on most car manufactures lists as a Novated Leasing provider. Therefore you automatically qualify for fleet pricing. To save even more go to www.motorbuys.com.au. Motorbuys is our sister company that allows you to source the best new car prices without the pressure and stress of negotiating in person with multiple dealerships. By getting a better vehicle price you pay a lower Novated lease payment and therefore save even more.
Always feel free to call us with any question during office hours on 1300990880.