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 avehicle 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 provider directly to find out how to take over the lease obligations themselves.
Novated Leasing In Geraldton
Fleet Network administers novated leases for vehicles in Broome, Albany, Geraldton and Perth, both through employers and directly with employees. To find out more about how you can benefit from novated leasing and other salary packaging options at a flat 20 per cent of taxable deductions, contact Fleet Network on 08 6555 3854.