Novated Leases

Mar 15, 2021

Salary Packaging is a great way to reduce the amount of Tax you pay on items such as Rent, Mortgage, School Fees, Healthcare, Vehicle expenses etc. However, if you’re looking to save tax on a new car – A Novated lease is a fantastic option!

 

A Novated Lease is a three-way agreement between an employee, their employer and the finance company. It is one of the most economic options for purchasing and operating a motor vehicle.

 

Most people will pay for the day-to-day running expenses of their vehicle with their after-tax dollars however, a Novated Lease allows you to bring a large portion of these running costs around the taxman! These expenses include:

  • Fuel
  • Maintenance
  • Insurance & Excess Payments
  • Registration
  • Finance repayments
  • Car Detailing
  • Car Washing
  • Roadside Assistance Membership
  • Personalised Number Plates
  • Vehicle Replacements such as; headlight protectors, mats, keys, windshield etc.

Not only do you save money by paying less tax, a Novated Lease also reduces budget stress as there is a provision taken from your wage each pay cycle. This is held in a trust account to accommodate for your annual expenses. These funds can be accessed and reimbursed to you by sending FAA your receipts or using what we call a ‘MotorPass Card’. As one of the most widely accepted company fuel cards on the market, the WEX Motorpass can be used for fuel and vehicle-related expenses such as; services, fuel, car washes & replacing tyres.

Contact the team at FAA Group today to see how much you can save!

 

“Got any questions the FAA Team are here to help!”

John Hehir

Disclaimer:

The information provided in this blog is general in nature and does not take into account your individual objectives, financial situation or needs. It is not intended to be personal financial, legal, taxation, or investment advice. Before making any decisions, we recommend seeking advice from a licensed financial adviser who understands your specific circumstances. While every effort is made to ensure the information is accurate at the time of publication, Financial Advisers Australia makes no guarantees and accepts no responsibility for any loss arising from reliance on this content.