Package your Car Costs in a Tax-Effective Way
Nobody likes paying tax – that’s one reason why thousands of Australians get into a brand new or used car through novated leasing.
A novated lease can be a tax-effective way to obtain that new car you’ve been thinking about. But how exactly does a novated lease work? Well, a car is leased in your name through your employer, but rather than making the lease payments with the money you have left-over after tax, it is paid for using a combination of pre and post-tax salary.
But the benefits don’t stop there – when you take out a novated lease you can also package your running costs together into one convenient fortnightly sum, and this too can be paid for in part with your pre-tax income.
It’s important to consider all these running costs, as they can add up to considerable savings when you package them together with your novated lease – they include:
- Tyres Miscellaneous (including batteries)
What packaging these costs means for you
You only have to manage one easy figure every fortnight which helps you stick to your budget and, even better, helps you avoid one-off big costs like registration. And if you don’t spend your full allocation by the end of the lease, it’s not a problem – you can simply request to have that money returned to you.
How we calculate a novated lease budget
We help you work out a budget for your car’s running costs based on the type of vehicle you’re looking for and distance you typically travel. Then we deduct the costs straight from your pre and post-tax salary automatically through your payroll.
It’s really simple, you just tell us what car you’d like, how far you think you’ll drive, and your annual salary, and we’ll help you find the right fit.
Disclaimer: This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.