Novated Vehicle Lease: Great value for Employees
Novated vehicle leases are a form of salary packaging loan, whereby you can pay for your car pre-tax on your income. It is a particularly effective way to get your car financed for many employees, and Quantum Finance are the company that has the lowest interest rates and monthly repayments on novated leases, Australia wide.
Benefits of a Novated Lease?
If an employer is willing to offer salary packaging as part of their employment benefits, novated leases are a great way for ordinary workers to save on car loans.
• There is an agreement between the financier, the employee and the employer to have the car lease repayments made pre-tax
• The lease agreement is between financier and employee, but the employer takes care of repayments
Salary Packaging Loan
Tax implications of salary packaging loans
The tax implications of a novated lease are somewhat different to loans like a Chattel Mortgage, where savings are made on GST. These car loans are ideal for employees, rather than sole traders or businesses, but not geared solely towards private buyers looking for a straight forward car loan or a Bad Credit Car Loan (bad credit car loan does not sound right in this spot change to . Here's how you save:
• The car payments are made before tax comes out of an employee's salary, effectively reducing their taxable income
• Employees can claim the novated lease payment as a tax deduction if the finance amount is below the ATO's current depreciation limit.
• FBT (Fringe Benefits Tax) must be paid in almost all cases, however. GST is also chargeable to the employee.
Arrange a novated lease through Quantum's wide network car finance specialists Australia-wide, just call on 1300 974 066 and discover how simple it can be to start saving on tax and driving the car you want!
Need further information?
If you require further Novated Lease assistants, either call 1300 974 066 to speak with an experienced car finance consultant or complete a quick enquiry form
| 
