What is a Novated Lease?
Novated Leasing is an ATO approved facility to enable you as an employee to use Pre tax dollars to pay for your vehicle and its expenses. Novated Leasing allows you to bundle together finance payments, fuel, servicing, tyres, registration and insurance into a single convenient payment.
The Novated Lease facility is an arrangement between you as an employee, financier and employer to allow deductions from your salary. One of the great things about this service, is that there is NO cost to your employer to provide a Novated Lease program.
What are the main benefits of a Novated Lease?
Novated Leasing provides an employee with pre-tax/GST savings and discounts on vehicle purchases, servicing and running costs. This is done all in the convenience of one single monthly payment through your employer.
Contact us to find out more on how you can save and obtain these benefits.
Can I source my own car?
| Yes, you can source your own car. You will need to provide us with the dealer quote you have sourced. Alternatively, you can take advantage of our preferred dealer network to benefit from our corporate fleet pricing and early stock availability. |
Can I have a Novated lease on a car that I already own?
Yes, you can lease a vehicle you already own depending on the age of the vehicle. This is referred to as a Sale and Leaseback. We will finance up to the market value of your car, pay this to you and lease back the vehicle with all the benefits of a Novated Lease. Call us to find out more!
Can I have more than one Novated Lease?
Yes, it is common for employees to have more than one vehicle under a Novated Lease. Employees usually obtain additional vehicles for their partner or other family members. It is subject to a credit application.
What is the residual value at the end of the lease?
A Novated lease will always have a residual value at the end of the lease term which is calculated using the ATO guidelines. The residual value can be paid out or re-financed for an additional lease period. The residual value is fixed at the commencement of the contract and doesn’t change during the term.
What is FBT and Employee Contribution Method?
Fringe Benefit Tax (FBT) is a tax which is applied to benefits you receive from your employer which are not in the form of salary or wages. Novated Leases have a concessional FBT rate of 20% which has been determined by the ATO.
The Employee Contribution Method (ECM) allows you to reduce the taxable value of your Novated Lease by contributing your own post-tax funds to the running of your Novated Lease as part of your regular payments. This essentially offsets your FBT liabilities for the duration of your lease.
What happens if I leave my employer?
If you change employers during the lease period, you can transfer the Novated Lease over to your new employer, pay out the remaining amount and own the vehicle outright, or you can continue to pay the lease directly.
How are Novated Lease budgets determined?
| Budgets are set based on your vehicle make, model, term of lease and the annual kilometers you will travel. We report the budgeted costs against your actual costs each month and these can be viewed 24/7 via our Novated APP. |
How do I apply for a Novated Lease?
Contact one of our dedicated Novated customer care consultants and they will assist you through the finance application process. Our simplified credit check process means that you will have an answer back within 2-4 hours.
