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Novated Leasing

FINANCE A VEHICLE (Novated Leasing) - Enquire Now

A salary packaged and novated car lease is an affordable way for an employee to drive a car of their choice.  The vehicle is not required to be used for work. It can  be a second car.

The car salary packaging advantages are that none of your money is tied up in the car, you do not need to save up the purchase price, and your tax deduction is based on the kilometres travelled by the car in a year. The more kms traveled, the greater the tax and GST saving. You chose the car.

Packaged novated car leases also offer considerable advantages for employers:

  • cars do not appear on your balance sheet
  • novated leasing can be packaged to minimise or eliminate FBT
  • a departing employee takes over the car and the car financing responsibilities

Novated car leases need careful packaging to suit individual usage, salary and circumstances.

SPG Guardian can organise the vehicle finance and novated lease, to make the process simple.

Examples:

Employee salary packages a $35,000 car and travels 20,000 kilometres a year.  Employee packages lease costs and running costs which total $11,000 pa  [Lease costs of $7,000 pa and running costs of $4,000 pa].

Each year, the employee is $3,000 to $3,400 better off by salary packaging the car through a novated lease. The employer may save $300 in reduced payroll tax and workers compensation premiums.

Salary
$65,000
$110,000
Employee – Tax & GST saving each year
$3,000
$3,400

The most expensive part of running a car is the loss in value. Our clients pay for the car as they go, and on average, save $2,500 to $5,000 in taxes as they do so.

It is a myth that salary packaging a car through novated leasing is just for the high income earner. The key issue is – do you have a job ?

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