The novated lease facility can be an affordable tax-effective way to purchase a new vehicle or the second family vehicle which you always wanted to be used for work or whenever.
A novated lease is an arrangement between You as the Employee, Your Employer, and the Lender. This novated lease arrangement you enter into is a Deed Of Novation (tripartite agreement) between all 3 parties.
This novated lease arrangement will assist with the purchase of the vehicle at competitive lenders rates and the repayments on the vehicle include all the running costs (view running cost list below) which are deducted through your employer as a ‘Salary Sacrifice’ payment. A Novated lease comes in 2 variances, either a lease on just the vehicle or the vehicle plus all the associated expenses and running costs.
An agreed dollar amount is paid to the lender from your pre-tax salary, (income you earn, that has not been taxed) to minimise your taxable income, with more take-home pay. A saving for you on the overall tax paid.
A saving for you on the overall tax paid, which means, Your take-home salary are increased.