ATO Residual

Every novated lease has to have one.

The ATO has produced a guideline about what the residual percentage should be, its connect by the term of the finance, longer the term the lower the residual.
Simply put, you're allowed to match the ATO guidelines but if your residual is less than the guideline, then you might not have a novation at all.

And without a novation, the tax savings disappear too.

So the best plan is to keep to the percentage and not below ATO Residual Guidelines

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