Novated Leasing explained
It is hard to imagine living without the freedom and convenience that comes with the ownership of a car. For many of us it’s virtually a necessity but owning a car is not always free from hassles. From arranging a loan to paying for running costs and maintenance, cars can become a costly business. But fortunately there are other alternatives to traditional forms of financing and ownership, and among them novated lease has become increasingly popular over recent years, thanks largely to the tax benefits associated with this form of lease.
A novated lease combines many features of more traditional forms of car finance to deliver some attractive benefits for both employers and employees. Essentially, it is a three-way agreement between your employer, yourself and the financier where the employee leases the car and the company takes on the employee’s obligation of paying the monthly lease rental from the employee’s pre-tax salary.
Because the cost of the vehicle ownership is packaged into the employee’s salary, there are considerable tax savings involved in novated leases. It is hardly surprising that this can make a huge difference to an individual’s taxable income, especially for those on higher tax brackets and those purchasing an expensive car. On top of that, the employee can also benefit from having a regular payment structure for all on-going repairs and maintenance. If you wish take your mind off worrying about unforeseen repairs or regular checks this will be ideal for you, as everything is included in the package.
Novated Leasing Across Australia
Securing a novated lease is a great alternative for those looking to save money while owning a car. For more information on obtaining a novated lease in Perth, Darwin, Sydney and other locations across Australia, contact Fleet Network on 1300 738 601.