Novated Lease Explained

What is a novated lease?

A novated lease contract involves three parties - a funding company, employer and member of staff. Novated lease in Australia occurs mainly in the automobile trade.

Importance: Novated lease contracts let employees access as well as make use of a car, devoid of undertaking the authorized and monetary aspects linked with car leasing.

Kinds: A full novation lease agreement requires the employer to presume all accountability for making car lease payments for the member of staff. A partial novation lease agreement absorbs an employee sub-leasing a motor vehicle to an employer, in return for the employer making the novated lease’s imbursements.

Advantages for the Employees:

•Your vehicle of preference is registered as well as covered in your name.

•Lessen your tax owed, every payday.

•No GST to be paid by you on the acquisition cost of your car

•Access Fleet Choice's fleet discounts on all new cars.

Advantages for Employers:

•Offer extra staff benefits, at no cost to the employer.

•Adds to staff withholding and staffing capacities

•Takes company cars off the books

•Reduces FBT expenses

Lots of associations choose to offer recruits with the alternative of entering into a car packaging agreement in place of a company car, thus reducing the fleet, FBT and related expenses with cars on the balance sheet.

Workers are pleased about the chance to buy their car of preference and gain from the associated tax savings.

Along with the Australian Taxation Office, a clause is usually included into the act of novation that transfers lease payment responsibilities back to the employee upon job termination.

One can make use of free online car lease calculator to exercise precisely how much money you will bank, by means of a novated lease to acquire your next car.

Once you have exercise how much you will save, you can then select to make an enquiry next to any new car in Australia.

A novated lease can save you money; so make use of this novated lease calculator to exercise accurately how much difference having a new or second-hand car will make to your net pay.

To know that what is a Novated Lease and how does it work – Click here