One of the many advantages of novated leasing is that you can claim back a number of work related expenses, including fuel payments and car maintenance.
Tax benefits of novated leases
Novated leasing is a tax efficient means of financing your new vehicle, allowing you to reduce your taxable income by sacrificing part of your gross salary towards vehicle payments – which is particularly desirable for Geraldton employees in higher tax brackets. As the vehicle owner, you will also not be required to pay GST on your monthly payments, though you may be required to pay Fringe Benefits Tax (FBT). You will also have the option to claim car related expenses through your novated lease, including running costs such as fuel and claiming back any maintenance carried out on your vehicle.
Statutory requirements for tax deductions
When an employee enters into a novated lease agreement with their employer and the financier, they will need to provide accurate details of all expenses being claimed through the lease, which may be denied by employers or tax officials if they fall outside the terms specified in the contract.
Fleet Network administers novated leasing in Geraldton, Broome and Perth, through employers and sponsoring organisations. All types of employees are able to purchase vehicles using taxable deductions through salary sacrifice arrangements – call (08) 6555 3854 to find out more.