Novated Operating Lease

The Perfect Novated Lease

The Aussie Chief says "It's almost the perfect employee car lease".

A novated operating lease has no residual risk, the employee simply hands the motor vehicle back to the finance provider at the end of the car lease.

What is a Novated Operating Lease?

A novated operating lease gives you the flexibility and piece of mind of an operating lease and at the same time the employee receives the same taxation benefit as a novated lease.

A Novated Operating Lease has no residual risk, the employee simply hands the motor vehicle back to the finance provider at the end of the Novated Lease.

How does it work?

A Novated Operating Lease is simple, get the go ahead from your employer, choose a motor vehicle, decide on the term and work out how many km's you will travel per year. Your employer will pay a monthly car lease payment that includes all scheduled serving and take this from your pre tax salary. At lease end you just hand the motor vehicle back to the finance provider.

Employee Benefits

No Residual Risk

No need to worry about resale values and negative equity for your motor vehicle, just give the vehicle back at lease end. And if your situation changes for the worst, you may be able to hand your motor vehicle back anytime after 9 months through the Peace of Mind, Early Return Plan.

Taxation Benefit

Use your pre-tax salary to pay off your motor vehicle, this can provide a taxation saving of thousands per year.

Flexibility

Terms range from 12 months to 60 months with a fixed car lease rental for the duration of the lease.

Motor Vehicle Choice

With very few restrictions on the type of motor vehicle you can choose for an novated operating lease, in no time at all, you could be driving your dream car.

Because of the nature of a novated operating lease, the vehicle must be purchased from a car dealer or company.

The Aussie Chief can also put you in touch with a Australia wide car broker, through their large buying power the car broker can save you time, hassle and money off the purchase price of all new cars.

Maintenance

All scheduled maintenance and servicing is included in the Novated Operating Lease payments.

Registration

Re-registration is included in the novated operating lease payment as well.

What Are The Taxation Implications

GST is charged on the monthly novated lease payment and as long as the employer is registered for GST, they can claim this back on their BAS.

Fringe Benefits Tax (FBT) is payable on the motor vehicle, and this expense is normally passed on to the employee. The amount of FBT depends on the kilometres travelled each year or amount of business use. The higher the kilometres and business use, the lower the FBT.

Where the amount financed is below the Depreciation Limit ($57,123), the employer claims the novated lease payment as a business expense. Above the Depreciation Limit, they claim the interest charges and depreciation up to the value of the Depreciation Limit ($57,180).

Who is a Novated Operating Lease Designed For?

A Novated Operating Lease is a great car lease option if you are travelling high km's or if the desired motor vehicle has historically low resale values.

Want to know more?

Complete The Aussie Chief's friendly enquiry form and we'll get an experienced novated leasing consultant to call you within a few hours. What could be easier?