Does it matter how much I earn?  

People on a range of incomes could still benefit from novated leasing.  Salary packaging a car could put you behind the wheel of a car that you may not otherwise have been able to afford – for example, someone earning $90,000 annually could save more than $2,572* per year through the potential tax benefits of novated leasing. There’s also the budgeting convenience of having all your running costs bundled into one regular payroll deduction.

*ASSUMPTIONS: The estimated potential tax benefit is exclusive of GST, and based on an employee earning $90,000 a year, on a $34,000 vehicle under a 5-year lease, with an annual distance travelled of 15,000kms and a 28.13% residual value. Calculations are based on the assumption that you would have paid for the lease from your post-tax salary (as opposed to salary packaging those payments from your pre-tax salary or a combination of your pre and post-tax salary). Included are car payments and estimated annual operating costs (GST exclusive) of fuel, maintenance, tyres, registration and comprehensive insurance. An average administration fee and the return of associated Input Tax Credits (ITCs) is also included in the example. The actual return of ITCs and per annum administration fee that applies to you may vary depending on your employer and may alter the calculation. GST of 1/11th is payable on your Employee Contribution Method (ECM) contributions. State Stamp Duty rates apply. PAYG tax rates effective 1 July 2024 have been used. The estimated annual benefit will vary depending upon salary, employment circumstances, selected benefits and applicable tax treatment.

Things you need to know: This general information doesn’t take your personal circumstances into account. Please consider whether this information is right for you before making a decision and seek professional independent tax or financial advice. Conditions and fees apply, along with credit assessment criteria for lease and loan products. The availability of benefits is subject to your employer’s approval. RemServ may pay or receive commissions in connection with its services. RemServ does not act as your agent or representative (or provide you with any advice or recommendations) in respect of the purchase of any vehicle.