News

How Do I Know If I’m Eligible for a Novated Lease?

How Do I Know If I’m Eligible for a Novated Lease?

At Vehicle Solutions, our mission is to assist you through the whole novated leasing process and help you save as much as possible. That is why we provide competitive, transparent quotes and advice.

Novated leasing is a three-way agreement between the employer, the employee and the lease provider. To reach this agreement, you have to get all three parties on-board.

What Makes You Eligible for Novated Leasing?

Any person earning a regular taxable income is eligible to apply for novated leasing. However, before you can start benefiting from the tax savings of novated leasing, you need to get the other aspects of this agreement in place.

You have to check your employer’s policy on novated leasing. Not only are they part of the agreement, but they also need to make the required arrangements with your lease provider to make the pre-tax salary deductions for you.

What Is Your Employer’s Role?

Before offering the employees the benefits of novated leasing, the employer has to make a few administrative arrangements first. To save your employer the hassle, Vehicle Solutions can manage all of this work for them for free.

Your employer will have to establish a payroll code for the pre-tax payments that will be deducted from the employee’s salary, set the payments and transfer the money to us – the novated leasing provider. Vehicle Solutions then manages all payments and reporting.

Is Novated Leasing Beneficial to High Income Employees Only?

One of the biggest myths about novated leasing is that only the employees with high income can benefit from it. That is not true. The tax savings generated from novated leasing is relatively beneficial. Not everybody shares the same view on what is considered a significant tax saving.

Therefore, it is essential that you get all of the information clearly and upfront, to decide for yourself. When you visit the Vehicle Solutions website, you will find our online novated leasing calculator. It will give you the exact annual income tax savings amount and the accurate cost to your take-home pay. Our online calculator will provide you with these results instantly and without requiring any personal details.

What Are the Steps of Getting Novated Leasing?

First, you should apply for finance approval either on our website or over the phone by calling us on 1300 990 880. You will get an approval on the same day. This approval is not binding to you in any form. It only means you can shop for a car with more confidence and will also assist in shortening the final steps of getting your car.

After you make your decision, we will produce all the documents and personally go through each document in detail with you before you sign anything. Once the papers are signed and settled, you can pick up your car and enjoy the tax savings.

If you still have any questions, we will be happy to answer them. Just visit our website or call us today!