Novated Leasing
When you’re on a wage and pay way to much tax a Novated Lease makes a very clever way of minimising your tax obligations and maximising your income.
Through the process of salary sacrifice, the employer pays the car re-payments for you and then deducts this payment from your pre-tax salary in the process, reducing it by the amount of the payment. This net saving can, depending on the case have significant income tax savings and leave you more money in your hand.
For the company there could be FBT implications, however if you deduct part of the payment from post-tax salary, (ECM Employee Contribution Method) then the FBT component is not valid for the company.
Another factor you might like to consider is that you can purchase the car GST free and then bundle the operating expenses into the payments and amortise them over the period of the loan making the experience of owning the car cash free for the life of the loan.
It’s these little details that make a good deal a brilliant deal and that’s why our clients love the depth of knowledge and the 30+ years of experience we bring to the creation of the Novated Lease of your new car.
Being able to configure your borrowing in a clever and meaningful way means you can maximise your income and reduce your obligations in terms of tax and other related expenses and get on with having fun in your life. All borrowing is not bad, it really depends on what benefits you derive from the loan and how that is configured.
A Boutique Finance Partner like us is exactly what you need to partner with to put together a package that works for you, your income and your lifestyle. The devil is in the detail and missing these types of details can be costly.
Let’s start the conversation today by contacting us.