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
Have you ever wanted to know the answer to the question “what is salary packaging?” This video will show you examples of how Novated Leasing works and how it can help you get your dream vehicle. You’ll learn how it can be more affordable to use novated leasing than to take out a loan at the bank. For more information, you can call us at Fleet Network on 1300 768 601. We help people get their dream cars through salary sacrifice in areas like Perth in Western Australia as well as New South Wales, Queensland and the Northern Territory, all across Australia.
If you choose a novated lease on your next vehicle purchase, the Employee Contribution Method (ECM) can help you reduce your overall costs even further. How to Take Advantage of the Employee Contribution Method In May 2011, the federal government made changes to the operation of the Fringe Benefit Tax (FBT). As a result of these changes, employees who take out novated leases are liable to pay more in FBT to offset the tax savings they make through salary packaging. The ECM allows you to recoup some of the extra FBT that you would otherwise have to pay under this new arrangement. It enables you to reduce your FBT by contributing a portion of your net salary towards the cost of running your vehicle. Every (net) dollar you spend towards fuel and other running costs reduces your payable FBT by a dollar. FBT is calculated at the highest end of each tax bracket. This means that, unless your taxable income places you at the high end of the bracket, using your net income to offset Read More
Fancy a new work run-around, with an added touch of sass? In this video Matt Campbell of drive.com.au reviews the new Subaru XV, a car he says is aimed at ‘city buyers who like the odd dirty weekend away’. Here’s what else he had to say. The XV: an ‘Impreza on Stilts’ The new Subaru XV compact crossover is essentially a high-riding version of the Subaru Impreza hatchback. The mid-range model that Matt is driving has a 2.0-litre, 4-cyclinder engine. There are options for either six-speed manual or continuously variable transmission(CVT). The XV’s high-ride height offers good visibility all around the car, a particular plus for city drivers who need to be able to constantly keep an eye out in all directions. This strength is further built upon by a rear reversing camera as standard on all models. Matt says that the steering is light and city-friendly, and that the XV corners well for a high-riding car. There is good storage space throughout and the interior is generally kitted out in Read More
To improve safety when driving in wet weather: Make sure your windscreen is kept clean inside and out. Ensure your windscreen wipers are in good condition. Turn your headlights on to low beam. Drive in the tracks of the car in front of you. Don’t follow large trucks too closely. Take care when passing them as well; if you must pass do so quickly and safely. Avoid using your brakes; if possible, take your foot off the accelerator to slow down. Use your air conditioner to prevent your windscreen from fogging up. No air conditioner, use the heater demister and if necessary open the windows slightly. Avoid off-road driving: it’s hard to judge the actual depth of puddles and you can easily become stuck, even in an SUV. When driving through a puddle of uncertain depth, go slow. If it’s deeper than the bottom of your doors, turn around and find another route. Deep water can cause serious damage to a modern car’s electrical systems. Avoid splashing pedestrians. If possible, Read More