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Member Id: shaunmcgowan
First Name: Shaun
Member Since: 12/02/2009
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Novated Lease your next car at Novated Lease Deals |
A Novated Lease is a three-way arrangement, between a financier,
employer and the employee. The employee chooses the vehicle and the
finance company 'novates' this agreement to the employer. The employer
assumes responsibility for the monthly lease payments, this is deducted
out of the employees gross salary (before tax). This car can be driven
for both business and personal use; it offers great benefits to both
the employee and the employer.
Major Benefits for the employer novating a vehicle
- The main benefit being that employers are able to offer employees
the extra incentive of a car in their remuneration/salary package.
Other benefits for the employer that a novated lease includes are;
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Removes the necessity of recording the car as an asset or liability in the business;
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Offers an income tax deduction for all payments made under the agreement, including lease rental payments;
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Removes the need to manage a company car or fleet of vehicles;
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Removes the responsibility of making lease payments away from the employer as soon as the employee leaves their job.
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Can offer employers, if registered for GST, the ability to claim an
input tax credit on the GST paid on the lease, (there are exceptions to
this – contact us for more details)
Benefits for the employee novating a lease
Other benefits for the employee that a novated lease includes are;
