A Novated Lease involves packaging the financing of a car within your salary. You, as the employee lease the car and your employer agrees to take on most of your obligations under the lease agreement. The lease payments would usually be paid out of your pre-tax salary.
Novated Leasing is most commonly used by individuals wanting to package a car as part of their salary.
What are the benefits of a Novated Lease?
There are a number of benefits to using a Novated Lease to finance your next car purchase, including:
- The ability to choose the car that best suits your needs
- Paying the lease cost from your pre-tax salary may be more tax effective
- It may be possible to transfer your Novated Lease agreement to another employer
- Running costs of the vehicle including monthly lease rentals, maintenance, fuel, and insurance may be salary sacrificed as well from your gross pay thereby reducing your taxable income
- Your employer pays some or all of the running costs of the vehicle including GST (and can claim an Input Tax Credit with respect to any GST incurred on such costs)
Why get a Novated Lease with Aussie?
Apart from the benefits listed above, getting your Novated Lease with Aussie means a hassle-free, highly personalised service.
Are there other options that I should consider?
A Novated Lease is a good option if you’re looking to finance a car purchase for yourself, but there may be other options worth considering. Check out the information on Chattel Mortgages, Commercial Hire Purchase and Finance Lease to compare.
Want to know more?
Call us now on 1800 097 234 or contact us online for a quote or to discuss how a Novated Lease from Aussie can assist you to find the best possible financing solution for your needs.
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Depending on your personal circumstances, a Novated Lease may offer you tax benefits when financing a car purchase. Seek appropriate advice from someone familiar with your personal financial situation to fully understand how these tax implications impact you.
A vehicle under a Novated Lease is considered a fringe benefit for tax purposes. FBT is a tax payable by an employer however this is usually passed on to the employee. There are ways to calculate the impact and potential offsets of FBT, so seek appropriate advice from someone familiar with your personal financial situation to fully understand how these tax implications impact you.
All applications to Aussie Asset Finance are subject to satisfaction of approval criteria, and terms and conditions apply. No part of this document is to be construed as an offer by anyone capable of acceptance or as a solicitation to obtain a financial product. The information is not an expression of opinion or recommendation and does not constitute financial, accounting, taxation, general or personal advice and should not be relied upon as such. The recipient should make its own assessment of any product or service referred to on this website and seek appropriate advice.
Aussie Asset Finance is a registered business name of Macquarie Leasing Pty Ltd ABN 38 002 674 982 (Australian Credit Licence 394925) and is used under licence.
The "Aussie" trademark is a trademark of AHL Investments Pty Ltd ABN 27 105 265 861. Credit assistance services are provided by AHL Investments Pty Ltd (Australian Credit Licence 246786) and its credit representatives. The credit provider is Macquarie Leasing Pty Ltd.