What is the advantage of a Novated Lease in Adelaide for a Government employee?
Government employees can save tax by doing a Novated Lease in Adelaide. A Novated Lease is a tax benefit provided by an employer to its employees. Vehicle Solutions Australia have been providing a “Self Managed” novated lease service to SA Government employees for over 7 years. Our “Self Managed” Novated Lease in Adelaide provides valuable choice and a competitive option to SA Government Employees. This article will set out the advantages of doing a Novated lease in Adelaide for SA Government employees.
- Reduces your income tax. A Novated Lease is a simple set of arrangements between you, your employer and the finance company (Leasing Company). These arrangements allow you to pay for your car finance and running costs before tax. Normally you would be paid your income after being taxed and then you would pay for your car including your finance, fuel, services, tyres, registration and insurance. With a Novated Lease you are able to pay a majority of these costs before you get taxed.
- GST Saving. The payment of the Novated Lease and running costs comes from income that you have sacrificed (hence the term Salary Sacrifice) back to your employer for them to pay for the these expenses. As your employer are paying for these expenses, they can claim the GST. These GST savings are automatically passed back to you increasing the amount you save. For a full description on GST savings specific to a car please refer to our previous specific “GST Savings” article.
- Convenience. When people do a Novated Lease for the first time, the main comment we receive is how easy and convenient the service is. Then most people never buy a car any other way. The main reason for this is that all of the car running costs are covered in a simple deduction from payroll. This deduction budgets for every running cost; fuel is paid on a fuel card that is billed back to the Salary Packaging company and paid, when a service or tyres are due, money is taken from the budget and paid, when your registration and insurance are due for renewal money is taken from the budget and paid. NO MORE BIG CAR EXPENSES. Not having to dig into your pocket to find cash for fuel or a set of tyres is very convenient.
- Big fleet discounts on the car. Vehicle Solutions is listed as a fleet leasing company with most of Australia’s vehicle manufactures. This allows us to get the maximum discount available for all novated leasing clients. If you need a quote on a new car try our online new car buying site www.motorbuys.com.au. Motorbuys will save you time and money shopping from dealership to dealership for the best price. Motorbuys also shows you which dealerships have your new car in stock ready for delivery.
If you would like a quote on a novated lease go to our Novated lease calculator or call our head office in Adelaide on 8338 4427 or 1300 990 880.
If you haven’t found your new car yet but know what you want try our online new car buying site www.motorbuys.com.au. Motorbuys is designed so that you can choose the exact car in a few simple clicks. Motorbuys is the only site that allows you to choose the exact colour and accessories so that dealers can provide an accurate quote, so you can make a more informed decision.
Or to find out if you can get approved on a lease click HERE.