If your employer offers you the option of novated lease vehicles among your employee benefits, this can be an extremely cost-effective way of obtaining your own vehicle without having to pay excessive GST. The individual owns the car under the lease, but finance repayments are made directly from your gross salary via your employer.
How a Novated Lease Works
Novated lease arrangements are offered through employers or directly from financiers themselves, and involve employees sacrificing part of their gross salary towards the cost of leasing a car or other vehicle of their choice. As well as being a cheaper way of owning a vehicle yourself, novated leases are also advantageous for businesses, which do not need to hire their own company fleet for business use and can receive tax benefits.
What Happens if You Leave Employment Early?
You own the rights to novated lease vehicles as soon as you agree to the terms of the lease, which means you are not restricted to using the car for strictly business use, and can use it as your private car at home. You will also be free to take the car with you if you change jobs, but it’s necessary to continue paying the lease – the difference being that you will now usually need to pay the lease financier directly, rather than through salary sacrifice arrangements.
Novated Lease Vehicles in Broome
Fleet Network offers novated leasing in locations across Australia like Geraldton, Broome, Mandurah and Perth in WA. We also offer other salary sacrifice arrangements through employers and sponsoring organisations. To find out more about novated leasing or how to salary sacrifice, contact Fleet Network on 1300 738 601.