Novated Leasing in Australia

Purchasing your next vehicle through a novated lease will help save you a considerable amount of money! How? With car lease payments deducted from your salary before your tax comes out, there is a reduction in your taxable income and this will decrease your tax bill.

Fleet Network specialises in Novated Leases, servicing clients Australia wide. Cars are our passion, so regardless of where you live or the type of car you want; we will work hard to get you the largest discounts on any car anywhere. You can expect outstanding service from our expert consultants. Fleet Network will manage the entire process, from the purchase of the vehicle, arranging the finance, right through to the administration of your lease payments.

Benefits of Novated Leasing for Employees

  • Sacrificing part of your monthly salary for a novated lease reduces your taxable income and the tax you pay.
  • We have strong relationships with dealers and manufactures across Australia. We work hard to get the largest discounts available on the vehicle of your choice.
  • All running costs are budgeted for the term of the lease and are covered by your regular salary deductions. No more budgeting headaches for tyres, services etc.
  • You will not pay GST on the purchase price of the vehicle. Also pay no GST on running costs like tyres, fuel, service etc.

Benefits of Novated Leasing for Employers

  • Introducing the concept of salary sacrificing through novated leases enables you to offer employees the opportunity to purchase a vehicle of their choosing using their pre-tax dollars. It opens the doors to tax bill reductions, maximising their salary by increasing the value of their take-home pay. It makes your staff feel valued, and can boost retention.
  • It comes at no cost for employers.

It’s a Lot easier than you Think – Obtaining a Novated Lease

  1. Confirm that your employer offers salary sacrificing or if they will consider making it available to the staff
  2. Choose your preferred vehicle make and model and estimate the kilometres you expect to travel per year.
  3. Fleet Network will negotiate the best price and give you a detailed quote for the vehicle, including all finance and running costs. You get a comprehensive estimate of your total costs, the expected tax savings, and the impact on your disposable income
  4. Upon your decision to proceed, we will complete your finance application, secure the vehicle and prepare the lease documentation
  5. Your employer simply has to sign the Deed of Novation and Salary Package Quotation.
  6. Fleet Network will coordinate settlement with the inancier and the dealer, and advise you that your new car is ready for collection.
  7. As soon as you take delivery of the vehicle, we notify payroll and your salary deductions commence.

For Government Employees: Note that we will provide information to the relevant bureau responsible for the management of your salary package.

 


Novated Lease FAQ

What is a novated lease?

Simply put, novated leasing is a method of buying a vehicle using your pre-tax dollars. This arrangement is offered by your employer, with lease payments deducted from your salary before calculating your income tax. In addition to income tax savings you will also enjoy GST free running expenses and GST free purchase of the motor vehicle.


Can any employer set up a novated lease scheme with Fleet Network?

Yes, and there are numerous advantages to doing so. Visit our Employer Information page to learn more.


Can anyone buy a car with a novated lease?

Yes novated leasing is now very common and many companies already have such schemes in place. Learn about how you can benefit from the same savings even if your company doesn’t have a plan in place yet by visiting our Employer Information page.


Can I arrange other car related expenses through my novated lease?

Yes, and we recommend you to. We can help you save on the GST of other related expenses as well. Fleet Network can make arrangements to incorporate your current running costs including those for fuel, regular maintenance services, tyres, and insurance coverage into your novated lease.


Why should I arrange to incorporate running costs into my lease?

Incorporating relevant running costs into your lease enables you to spread expenses evenly throughout the term of the lease. For example, there is no need to suddenly shell out large sums when your car goes in for a routine service. We are also able to ensure that the running costs you pay do not include GST. Fleet Network is all about helping you save more.


How are running costs calculated?

Running costs are based on the make and model of the car you drive, where you live, estimated mileage, terms of insurance coverage, fuel price, and other aspects specific to you. If by any chance you overestimate at the end of the lease, you will have funds that can be paid back to you via your salary or you keep them for your next vehicle, the choice is yours.Just the same, if you underestimate the use of your vehicle, it may become necessary to increase the regular paymentsto make up for the shortfall during your lease term. Give us a call at 1300 738 601 and we will assist you with the calculations involved!


Why choose Fleet Network?

We deal exclusively with cars. Our passion is to get you behind the wheels of the car of your choice at a price that fits your budget, wherever you may be in Australia.


What are the tax implications of a novated lease?

Under the terms of novated leasing, employees save on income tax and enjoy a wide range of benefits, starting with the unlimited private use of the car you choose. You own the vehicle and can retain it even if you change employers. You don’t have to pay GST or monthly lease payments for the vehicle. Your employer pays the GST and claims it back as an input tax credit on their monthly BAS. Fringe Benefits Tax (FBT) is also payable on the benefit provided through the Fully Maintained Novated Lease; this expense is allowed for when calculating your normal salary deductions.

FBT used to be calculated based on the value of the car against the distance travelled each year, with benefits increasing in line with the annual distance travelled. Following the 2011 budget changes, this will be phased out over the next three years with a flat 20% regardless of kilometres, applicable starting on the 1st of April 2014. Any FBT liabilities can be offset through post tax contributions to vehicle running costs. This is called the Employee Contribution Method (ECM).


What is Fringe Benefits Tax (FBT)?

This refers to ‘payments’ to an employee, but come in a different form compared to salary or wages. According to FBT legislation, these are benefits provided in respect of employment. This effectively means a benefit is provided simply because they are employees. Every benefit – be it a car, laptop, loan, reimbursement of school fees, and the like – has a taxable value that serves as basis for calculating the fringe benefit tax payable.


What happens if I have a current novated lease and change jobs?

Your novation agreement ceases upon change of employment. Although this is the case, the agreement is transferable. Contact us if you are planning to leave your current job so we can discuss what options are available to you and help you out with the process as well.


Which vehicles are eligible for novated leasing and salary packaging?

All new cars or passenger vehicles qualify for salary packaging through a novated lease. Some light commercial vehicles and second hand cars are also eligible for packaging, but there are rules governing which you can package. Generally, the most important thing to remember is that vehicles must not be older than 8 years or have travelled more than 200,000 kilometres at the end of the lease term.


What are the minimum and maximum terms (lease lengths) for a novated lease?

The usual term for such financing is 24, 36, 48, or 60 months. Terms depends on affordability, age, and value of the car.

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Antonio , Department of Education, Western Australia

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Garry , Department of Indigenous Affairs, Western Australia

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Shirley , WA Education

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“The vehicle is everything we thought it would be as it’s our third Santa Fe, second diesel. A lot more refined than the earlier model, none the less both Joanna and myself are very happy with it. Right from the start when we spoke with Tim nothing was too much trouble and if there was a query then our contact persons were only too happy to attend to our questions with the utmost professionalism and courtesy. I have passed on to other staff members your company name and hopefully they will be in touch with yourselves in the future.”

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Troy and Karen , State Government Employee, New South Wales

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