Leasing a Car: How Are Running Costs Calculated?

Novated leasing is one of the most cost effective ways for all types of employees to lease a car. You will also be able to claim back many of your running costs through the lease for work related expenses.

Factors that influence running costs

Running costs vary between individual drivers, and are also influenced by the type of vehicle you drive, the number of kilometres you travel and the place in which you live. When you lease a car for work purposes, you will be able to claim back GST on expenses such as fuel, maintenance services, replacement tyres and insurance through your lease, making novated leasing an even better option when considering how to finance a new vehicle.

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Tax benefits of novated leasing

There are tax benefits at every stage of novated lease agreements, from financing the car itself to long term running costs. Your employer may use different systems to calculate running costs, either based on the number of kilometres your car has travelled or based directly on your receipts. If you underestimate the amount of GST you can claim back through your novated lease, the correct balance will be reimbursed to you at the end of the financial year.

Fleet Network offers salary packaging in Perth, Albany and other areas, including novated leasing which allows employees to purchase their own vehicles using taxable deductions. For more information about how to salary sacrifice in Western Australia, contact Fleet Network on 08 6555 3854