Author: Jeffrey Morton / Published Date: 16 May 2013
Categories: Novated Leasing, Consultancy
If you have a novated lease, a car salary packaging program in your organisation or a fleet of company cars on the books – the budget last night held no nasty surprises.
From 1 July 2014, company cars will become a little more expensive (see below example) but apart from that, the changes are nowhere near as significant as those introduced in the 2011 Federal Budget, where the statutory rates for calculating Fringe Benefit Values were flattened to 20% across the board.
The phase-in period for those changes is to be completed in April 2014, and we're in the final steps of compiling the analysis of the 2013 FBT year, so if you're signed up to receive The Autopian you'll be able to see how the changes are affecting the industry in the next edition.
The only upcoming change that will impact our industry won’t actually come into effect until the 2014-2015 FBT year.
To coincide with the Medicare Levy increasing from 1.5% to 2.0%, from 1 July 2014 the Fringe Benefit Tax rate will increase from 46.5% to 47% - a small increase that will really hit company cars more than novated leases, as the FBT gross-up rate will increase from 2.0647 to 2.0802 (where an employer is entitled to a GST credit) and 1.8692 to 1.8868 (where an employer is not entitled to a GST credit).
Company Car Example:
This is the difference it will make to a $40,000 company car.
-$40,000 x 20% (statutory rate) = $8,000 (Fringe Benefit Value)
-Pre 1 July 2014: $8,000 x 46.5% x 2.0647 = $7,681 (Fringe Benefit Tax)
-Post 1 July 2014: $8,000 x 47% x 2.0802 = $7,822 (Fringe Benefit Tax)
Every $40,000 company car will cost $141 more a year from 1 July 2014 on.
It’s as yet unclear, what will happen to the ‘gap’ between the beginning of the next FBT year on the 1 April 2014, and the introduction of the new rate on the 1 July 2014 as the relevant legislation isn’t available just yet. As soon as it is however, we'll let you know.
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Author: Barry Scott / Published Date: 13 May 2013
Categories: Novated Leasing
If you're a driver of ours, we'd like to make it easier for you (and by that we mean financially) to pay it forward. You're already saving thousands every year thanks to your novated lease - know anyone who might be interested in joining you by salary packaging a car..?
Just visit the page below and share it with your friends, or anyone who could do with an extra couple of thousand dollars..?
More details on how we can sweeten the deal for both of you here..
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Author: Barry Scott / Published Date: 9 May 2013
Categories: Just Love Cars™
The new Star Trek movie ‘Into Darkness’ launches today in Australia, giving us an excuse not only to go watch the movie, but to share a great TV ad from Audi.
Would they both have novated leases on their cars? What do you think…
Spock vs Spock. Very funny. Enjoy.
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Author: Barry Scott / Published Date: 22 March 2013
Categories: Just Love Cars™
When we launched our newsletter Just Love Cars™ we decided to give another car lover a real treat, by giving away a $1,000 Adrenalin Voucher to the person who persuaded us that they loved cars more than anyone else. Well the results are in..
Congratulations go to Sam Carroll!
Sam wrote a veritable essay on his love for cars, and we’ll publish bits and pieces of it here over the coming months. Sam, we’ll be in touch regarding your voucher, and we look forward to hearing how you decide to use it.
“ I Just Love Cars for lots of reasons! I love the smell of a new car,
the excitement of driving it for the first time, the thrill of going fast
(up to the speed limit of course).... I love the look of cars...”
We hope you all enjoyed the first edition of Just Love Cars™,and stay tuned… there will be more..
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Author: Barry Scott / Published Date: 1 March 2013
Categories: Just Love Cars™
Advising our clients on which car is the best for their particular circumstances is something we do extremely well. Our knowledge of novated leasing, combined with our passion for cars is one of the reasons we’re the best in the industry - and Just Love Cars™ is our excuse to talk about our love, and our passion.
50 Years of James Bond Cars
The
latest Bond movie, Skyfall, marks 50 years of Ian Fleming's
misogynistic secret agent. We look back over all the cars he's had the
pleasure of driving, the gadgets, the car chases..
Inside Autopia with: Matt Parker
Senior Novated Leasing Consultant Matt lets us in on how he made $6,000 (tax free), from his last novation..
The Cleanest Car... in the World..
Two buckets and 30 minutes is all it takes to get this kind of finish. Find out how here..
Intelligent Car Ownership:
TipNo.1 - Choose the Right Car
Why buying a more expensive car ended up saving Jim Green $7,382 over three years..
Super Bowl Car Ad's 2013
Which
one's your favourite? Which was a waste of time.. AUDI at the prom..?
Mercedes after your soul? VW puttin' a smile on ya face?
Hyundai Veloster- Weird or Not?
Hyundai's 'smart hatch meets cool cabriolet' gets a going over here by one of our consultants - Matt Parker - "Two doors on this side and only one on the other..?"
Petrol Prices: Trends, Influences, and Where are They Heading!?
What have prices been doing recently, and what has the greatest affect on the price we pay for petrol..
How a Car Thief Revolutionised the Auto Industry- Bertha Benz
First in our series of inspirational people from the world of automobiles..
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