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:
- Insurance & Excess Payments
- 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!”