What happens if I am no longer employed by a Government Department – what happens to my Novated Lease?
Novated Leases can be transferred to a new employer or simply reverts to a month finance payment until you have found a new job.
If you have an SA Government employee Novated Lease and for what ever reason you are leaving your job, firstly contact your Salary Packaging Provider for advice. In most cases your Novation Deed (tri-party agreement that binds you, your employer and the financier) will be broken automatically when you leave your job. This simply means your Novated Lease reverts to just a normal lease finance arrangement between you and the leasing company until you have secured new employment.
THE GOOD NEWS AND AN EASY TO FOLLOW PROCESS
Novated leases can be transferred to another employer. This process is as simple as getting a new Novation deed establish and signed by that new employer. The following is a guide that may assist in making the transfer a smooth easy process.
- When negotiating your new job simple ask if Salary Packaging a Novated Lease is available as an option. If it is an option, ask if they have one or a number of providers. Get a list of contact details of these providers. If your new employer does not currently offer Novated Leasing or Salary Packaging please contact us immediately and we will be able to assist in establishing this service for them at no cost. There are still a lot of private employers that do not offer this service as they are unaware the service is free for the employer to access. Vehicle Solutions Australia provides employers with presentation material for staff, manage all payments and provide complete GST and FBT reporting. For more information on our employer service offering please direct your new employer to the “employer section” of our website.
- During the process of moving into your new role contact one of these providers and advise them of your situation and that you would like them to “take on your existing lease” and establish a new Novation Deed with your new employer.
- The provider will issue you with a quote including all running cost as well as the new Novated Deed for your new employer to sign.
- Once you have signed the new deed and any other relevant employer required documents, your package and novated lease will be processed and begin again with your new employer.
If you have any questions regarding the process always feel free to contact us on 1300 990 880 or email firstname.lastname@example.org.