Determining the statutory percentage
Started a novated lease after 10th May 2011?
Did you nominate or plan to drive further than 25,000 kms per year.
Then expect your novated lease budget to change to the new rates applied from the 1st April 2012.
The move to one statutory rate of 20% will be phased in over four years, over this time, each FBT year your payroll deductions need to be varied to the new statutory rate (%).
For any new novated lease entered into during transition period can choose to skip the transitional arrangements and apply the 20% statutory rate, however, this choice is subject to certain conditions.
You cannot skip the transitional arrangements where an employee would be worse off as a result of this choice.
That is, the employee cannot be placed at a direct financial disadvantage as a result of this choice, unless you have obtained the consent of the employee.