A novated lease is a popular and tax-effective way to afford the car you want.
There are many benefits of a novated lease the main one being that you could save thousands of dollars.
Who can benefit from a novated lease?
A novated lease could benefit almost anyone who has a car. You don't have to be a high-income earner or drive high kilometres to benefit.
By paying for your regular car expenses before you're taxed, you can reduce your taxable income. That means you could pay less tax and increase your disposable income.
You also get the budgetary convenience of bundling not only your car repayments but all your running costs into one regular payment.
If you work in the health or charity sector, a novated lease can be packaged on top of your salary packaging cap limit using a combination of your pre-tax and post-tax pay. That's even extra value.
Contact your employer to find out if this benefit is available to you.
What is a novated lease?
A novated lease is a three-way agreement - between you, your employer and a financier - to lease your chosen car.
The car is leased in your name and your employer agrees to take responsibility for the lease payments. We arrange payment of the lease repayments and car running costs from your RemServ novated lease account using a combination of your pre-tax and post-tax salary.
The car you lease is up to you. You can choose:
- a new car
- a used car
- or your existing car.
If you are considering packaging a used car or your existing vehicle, some conditions may apply.
Generally, you can choose to lease a car for anywhere between one to five years, provided the car is not more than seven years old at the end of the lease.
What are the benefits of a novated lease?
Because we source so many cars, we usually get great prices. When you finance a new car through a novated lease, you pay no GST on the purchase price* and save on running costs like maintenance, tyres and fuel.
Get more from your pay
With a novated lease, car repayments are made before your salary is taxed, this can reduces your taxable income - and you could pay less tax. Because you pay less tax, you could end up with more disposable income.
A novated lease can save you time looking for a car and haggling with car salespeople. We manage the finance application process and get you a response as quickly as possible.
We do the hard work for you
We can provide an obligation-free quote to match your needs and help you find your car - and get a great deal. We can also manage all the paperwork, arrange the novated lease and organise the insurance^.
*If you purchase the vehicle on termination of the lease, GST is payable on the purchase price you pay at that time.
^Remuneration Services (QLD) Pty Ltd (ABN 46 093 173 089) (RemServ) act as an authorised representative on behalf of a number of Australian financial services licensees. The capacity in which we act and the financial services we are authorised to provide are set out in our Financial Services Guides. We act as an agent for those licensees and not for you.
Things you need to know: The above information is not intended to constitute taxation or financial product advice. Your benefits and savings will vary depending on your personal objectives, financial situation and needs. We recommend you obtain independent financial or taxation advice before making any financial decisions.
Eligibility criteria and terms and conditions apply. All salary packaging proposals are subject to the requirements of your employer. Administration fees will apply. The actual administration fee that applies to you may vary depending on your employer. ITCs (Input Tax Credits or refund on GST) are excluded. RemServ may pay and receive commission or rebates in connection with some services and products it provides or arranges to be provided by third parties.