Did you know that it’s not just high-income earners or the self employed who can benefit from novated leases?
To the contrary, many people can purchase and drive their car of choice, whether it’s brand new (fleet discounts may apply), near new, or even the buy-back or lease of your current vehicle.
A novated lease bundles together all vehicle finance and running costs – fuel, registration, insurance, tyres, servicing and more into one regular, monthly payment, which is deducted from your pre-tax salary.
This is a tax effective, salary sacrifice agreement between an employee and employer that enables tax effective use of your (perhaps even your partner’s) private motor vehicle, leaving more dollars in your pocket.
You can pay in pre-tax dollars, to utilise GST credits to partially fund car costs and reduce your income tax – even if you’re a PAYG earner. We regularly show everyday employees how they can enjoy these cost reductions, demonstrating that it’s not just for business use vehicles, and we’d be happy to show you these benefits in your own situation as well!