Will a novated lease work for me?
See if you can tick these...
- Are you an employee?
- Do you earn a salary of $50k or more pa?
- Do you like driving a new or near new car?
YES, a Novated lease could be just be what you need to save tax and put more money in your pocket.
With your bosses help...
In a couple of days you could have pen poised over an lease and novation agreement, that says you’re going to get a new car and your friendly Government will allow your car expenses to be paid (like your Super) before the line where your taxable income begins, and they won’t include the GST either.
If that’s what the piece of paper says, you are definitely looking at a Novated Lease Agreement.
Too good to be true? No! There’s a catch? No!
The ho-hum stuff...
Cars under a Novated lease don’t even have to be used for work. And it doesn’t matter how few or how many kms you clock up either.
You, your spouse and others in your family can drive it too. And, it’s you that gets to choose the make, model and colour.
- you save the GST on the purchase price of your new car
- there’s NO GST on your ongoing vehicle repayments or on running costs
- your lower taxable income and GST savings mean you can get a better car for the same take home pay or, you have more take home pay.
- no more suffering of the big bill syndrome