Novated leases have become an exceedingly popular form of vehicle financing over recent years. novated leasing Australia agreements combine many features of traditional forms of car finance to deliver benefits to both employers and employees.
Novated leasing can enable your employer to easily and flexibly add value to your remuneration package, making them more attractive as an employer. Novated leasing is a cost-effective alternative to operating a company fleet and can free-up valuable capital for other programs.
For you (the employee), novated leasing can allow lease and running costs to be paid through salary packaging. Deductions may include pre-tax and post-tax amounts, and any savings depend on your circumstances and the arrangement. You choose the vehicle you want and the lease period and the repayment amount is customised accordingly.
A novated leasing company will enter into an agreement (made three-ways) between your employer, yourself (as the employee) and the financier. The employer takes on the lease payment obligations while the novation applies. The financier retains ownership during the lease. If you change jobs, the arrangement may need to be transferred to a new employer or the obligations may revert to you. There may also be tax benefits with your remuneration package, if arrangements are structured correctly.
Firstly, choose your vehicle. Barling Finance will then liaise between you (the employee), your employer and the novated leasing company (the financier). We’ll help you compare pricing on your chosen vehicle and arrange all aspects of the loan, making everything simple.
A NOVATED LEASE OFFERS
• Potential tax benefits, depending on your circumstances
• Fixed monthly costs for loan duration
• Salary packaging for an eligible vehicle
• End-of-lease options and any tax consequences depend on the agreement and your circumstances.
Which is the right novated leasing company for you? Every novated leasing company is different and offers different products, eligibility and arrangements. Some cater for new and used vehicles, others will allow private use, subject to the provider’s conditions and applicable tax and record-keeping requirements or a second lease for a spouse’s vehicle.
Barling Finance’s novated leasing Australia specialists will guide you through the various options and broker a sound deal that works for you.
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