Why A Novated Lease Is Best For You?
These days, so many Australian companies offer their workers the flexibility to incorporate a motor vehicle as part of their salary package. Vehicle salary packaging permits employees to drive home a new or second-hand car as well as providing a hassle free way of maintaining and servicing that vehicle for the duration of the lease term.
Usually known as a novated lease, it is in fact a three way agreement between the employee, employer and the salary packaging company. In this case, the car is leased in the employee's name and then novated (transferred) to the employer. This procedure enables the employer to deduct the lease payments from the employee's pre-tax income resulting in significant GST and PAYG tax savings.
If you are considering getting a new or used car, mentioned below are a few of the reasons why the salary packaging choice will suit you best:
• The lease is tax and cost-efficient. The lease repayments are deducted from your earnings before tax resulting in substantial tax savings every pay cycle
• You will be in a position to select the vehicle that you require. As the package is not thought as part of a company's fleet, you get to choose the kind of car that you want. You do not have strict restrictions and alternatives since you are free to get the car of your selection.
• When you choose to salary package your vehicle, you are free to use it any time you want. Also, there are no limitations on the people who you permit to drive it. It is yours 100% and you could let anyone you like drive your car.
• If you switch your job, you can bring your lease and vehicle with you. It is completely transferrable and portable. All you must do is to get into another Novation Agreement with the new company you are associated with.
• You are free to select from the flexible lease terms between 1 and 5 years. This permits you have more time to pay for the car you have leased.
• Through a salary packaging agreement, your vehicle's finance and operating costs are considered a "related benefit." Because of this, all vehicle related expenses (like fuel, maintenance, insurance, registration, etc) are effectively exempt from GST and income tax.
• Latest alterations to FBT legislation also mean that novated leasing is an appealing alternative for those personnel that travel very few kilometres every year. Hence, whether you travel 5,000km or 35,000km per annum, novated leasing provides substantial tax savings.
With the above reasons, it is no wonder why there are several people who are currently entering into a novated lease agreement. It really does provide several individuals with the unique possibility to purchase and own a brand new car.
Simply Green Salary Packaging provides an effective salary packaging solution for organisations that want to find ways of adding value to their employees'
remuneration and reducing the impact on the environment.
Usually known as a novated lease, it is in fact a three way agreement between the employee, employer and the salary packaging company. In this case, the car is leased in the employee's name and then novated (transferred) to the employer. This procedure enables the employer to deduct the lease payments from the employee's pre-tax income resulting in significant GST and PAYG tax savings.
If you are considering getting a new or used car, mentioned below are a few of the reasons why the salary packaging choice will suit you best:
• The lease is tax and cost-efficient. The lease repayments are deducted from your earnings before tax resulting in substantial tax savings every pay cycle
• You will be in a position to select the vehicle that you require. As the package is not thought as part of a company's fleet, you get to choose the kind of car that you want. You do not have strict restrictions and alternatives since you are free to get the car of your selection.
• When you choose to salary package your vehicle, you are free to use it any time you want. Also, there are no limitations on the people who you permit to drive it. It is yours 100% and you could let anyone you like drive your car.
• If you switch your job, you can bring your lease and vehicle with you. It is completely transferrable and portable. All you must do is to get into another Novation Agreement with the new company you are associated with.
• You are free to select from the flexible lease terms between 1 and 5 years. This permits you have more time to pay for the car you have leased.
• Through a salary packaging agreement, your vehicle's finance and operating costs are considered a "related benefit." Because of this, all vehicle related expenses (like fuel, maintenance, insurance, registration, etc) are effectively exempt from GST and income tax.
• Latest alterations to FBT legislation also mean that novated leasing is an appealing alternative for those personnel that travel very few kilometres every year. Hence, whether you travel 5,000km or 35,000km per annum, novated leasing provides substantial tax savings.
With the above reasons, it is no wonder why there are several people who are currently entering into a novated lease agreement. It really does provide several individuals with the unique possibility to purchase and own a brand new car.
Simply Green Salary Packaging provides an effective salary packaging solution for organisations that want to find ways of adding value to their employees'
remuneration and reducing the impact on the environment.