Does your employer offer salary packaging? If so, Project 1 Finance Pty Ltd are here to help. We’ll help guide you through the features of a novated lease and put your mind at ease with our expertise and personalised service.
What is a novated lease?
A novated lease allows a business to lease a vehicle on behalf of its employees, however, the responsibility of the lease and its payments lies with the employee. The payments are made from the employee’s pre-tax income.
However, your employer needs to offer salary packaging for employees to qualify for this type of lease. If they do, the vehicle must be used predominantly for business use, or your employer needs to be 100% FBT exempt.
In regards to owning your vehicle with a Novated Lease – the employee agrees to pay a ‘residual’ which is the amount that remains owing on the vehicle at the end of the lease. They then own the vehicle outright. Alternatively, they can extend the lease for a further period or sell the car and use the funds to pay out the residual.
The tax benefits for the employee are substantial, because all costs associated with this lease – the loan, the purchase of the car – including maintenance and fuel, can be deducted from pre-tax income, leaving you with more disposable income to spend at the end of the month.
However other factors do come into play such as the type of vehicle, the kilometres it will travel annually, the employee’s salary, associated fees and the Fringe Benefit Tax method used.
There have been recent changes to Fringe Benefit Tax. Depending on the employee’s circumstances, these new changes may make the Novated Lease not a suitable option. Should this be the case, one of our experienced consultants will be able to work through this with you and offer you the best deal based on your own personal situation.
Require novated leasing? Don’t go directly to a lender and definitely don’t approach your bank. You’ll get a far better deal – plus much more – right here with Project 1 Finance Pty Ltd. We’re able to offer obligation-free advice and deals from Australia’s most trusted lenders, ensuring you get the finance deal that’s right for you. For more information about novated leases, please give us a call or contact us online.
Why choose Project 1 Finance?
Fix loan terms
We only deal with trusted Australian lenders, who are viable and willing to assist in negotiating a flexible loan, tailored to your needs.
Project 1 Finance Pty Ltd is a brokerage that works with its clients to ensure they know the real deal and what is being offered is the right fit for them.
We work effortlessly to find you the best loan solutions at the most competitive rates