If you’ve entered into a novated leasing arrangement with your current employer, you will be able to continue benefiting from the agreement even if you leave the company. Arranging A Novated Lease Novated leases are a popular and cost-effective option for employees who are looking to buy or lease a vehicle for business use, without having to pay GST. A novated lease is a form of salary sacrifice that involves setting aside a portion of an employee’s regular wage for payments towards the cost of a new vehicle. What Happens When I Change Jobs? Novation agreements are fully transferrable. This means that if a lessee leaves their current job or has their position terminated, they will still be able to make payments towards a novated lease, with the lease obligations being transferred directly to the employee rather than their employer. In some cases, a new employer may take on the lease obligations. Employees who are planning on changing jobs or who are concerned about losing their jobs should contact their novated lease Read More
Many employers and employees are still unclear about what salary packaging is, and what the benefits are of these arrangements. One of the key advantages of buying vehicles and making other large scale purchases through salary packaging is the tax benefits that can be enjoyed. Tax benefits of novated leasing Purchasing a car through a novated lease can work out much cheaper for employees, as the finance company leasing the vehicle is usually liable to pay GST. This means that vehicle owners can benefit from a flat 20% of taxable deductions when making payments, provided the vehicle is used for business in some capacity. Employers can also claim GST credits when offering novated leases to their employers through financiers, which can also involve a fringe benefit. Other salary packaging benefits When you arrange a novated lease, you can also enjoy tax benefits when paying for your car’s running costs, including fuel payments and maintenance. All of these standard running costs may be covered by a fuel card, which offers a single, convenient Read More
Teachers have been making their pay go further by salary packaging their cars for decades. Teachers and most education staff are allowed to salary package a percentage of their salary into items such as computers, self-education and cars. This is a great benefit and one that Fleet Network can explain in detail if you are unsure of the process or the benefits. Fleet Network has helped teachers all over Australia package the car of their dreams. The process is really simple: You find the car that you love Contact Fleet Network They’ll put together an obligation free quote and show how much tax you can save If you would like to progress, they will contact your employer to sign the Deed of Novation and set up the deductions direct from your salary. Simple! So give Fleet Network a call today on 1300 738 601 and see how they can help you save thousands on your next new car.
Fleet Network has salary packaged cars for hundreds of Australian Defence personnel over their 20 years in the industry. We look after members of the Army, Navy and RAAF in varying positions, incomes and locations – from bases in Queensland and New South Wales, to barracks in Canberra, Perth and Darwin. Salary Packaging (also known as salary sacrificing) is an automatic benefit of working in the Defence Force. Fleet Network is experienced in working around deployments and military training rosters, and our aim is to provide seamless, convenient and prompt service. If you want to salary package a car, deal with the real experts in salary packaging and get the car you want for the right price, without any hassles.
A novated lease arrangement provides significant benefits to both employers and employees. Employers commonly use it as part of their salary packaging arrangement. This enables them to extend significant financial benefits to the employees with the business incurring little or no cost. How Novated Leasing Works lf the employer offers novated lease as a salary package option, then the employee can select the vehicle that suits his or her lifestyle, the make and model, used or new, wagon, or sedan without the restrictions imposed by traditional company fleet. The employee purchases the vehicle and also enters into a finance agreement in his or her name. The novation agreement is signed by the financier, the employer, and the employee after the purchase of the vehicle. The employee agrees to sacrifice a portion of the salary or earnings in lieu of the benefit of the car which is equal to the same amount. ln this type of an arrangement, the lease payment, vehicle running costs and the vehicle and the fringe benefits Read More