A novated lease is a finance lease arranged by an employee through a finance provider. The employer is in agreement to take over the entire rights and responsibilities of the lease, for the time of the lease tenure or else until the employee leaves their service. All lease expenditures and additional expenses to sustain the automobile (insurance, oil, repairs, if integrated) are compensated by the employer, by means of pre-tax dollars and reducing the employee’s taxable earnings.
Why opt for a Novated lease?
Novated Lease can offer various benefits to an employee:
Income tax savings
No GST on automobile acquisition cost or operation costs – comprising utmost savings in fuel
Liberty of vehicle selection
Possible profit at lease conclusion
Used vehicles can be entitled
Sale and leasebacks acceptable
Non-maintained or fully maintained deals
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Plus various benefits to an employer and his business, like:
Smart employment and retention proposal
Added importance for the recruits with no expenditure to the company
Commercial choice for working fleets with no risk to the employer
Flexibility in auto option and pay packaging, headed for the employees
Meet the pay package and vehicle inclination of employees, exclusive of the trouble of maintaining a vehicle fleet, at the same time as considerably reducing administration expenses.
In favor of accounting purposes, Novated Leases might improve accounts ratios and clear outstanding legal responsibility, should there be a change to the employee/employer circumstances
The Novated Lease Calculators are accessible online to view at any specified time of the day or night. With this car Lease Calculator, all Australians from the country can hit upon the most appropriate car lease in no time. One just has to enter some particulars and can choose from the finest obtainable novated lease, put forward by various Australian companies. The calculator is able to provide you a complete plan of your leasing expenditure and can integrate the operation costs into your Tax Benefit. The information required depends exclusively on whether or not the employee needs a Fully-Maintained or Non-Maintained Lease.
In recent times, saving money is important and a novated lease calculator helps you to work out these savings.
Adam Reedy writes about “Novated Lease” – For more information on Novated lease, Novated Lease explained and Car Loans log on to – Fincar.com.au
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