Driving a Toyota Kluger less than 15,000 kilometres a year - Case Study
Thanks to the budget changes, salary packaging a car has just
become even more profitable for people driving less than 15,000
kilometres a year.
And for those who’ve never been able to
package before, here’s an example of the tax savings you’re now able to
achieve through novated leasing.
Below we detail the savings involved when driving a Toyota Kluger just 12,000 kilometres a year, comparing salary packaging with personal finance.
If you'd like to see the savings when driving a Honda Jazz, just click here.
Salary and vehicle details |
|
|
Salary |
$100,000 + super |
|
Car allowance |
$0 |
|
Vehicle |
2011 Toyota Kluger KX-S 7st 3.5i |
|
On road cost |
$55,330 |
|
Annual kilometres |
12,000kms p/a |
|
Usage |
No business use |
|
Term |
3 year lease |
The next step is to determine the running costs of the vehicle. This is part of the first step in our five-step lifecycle model.
Annual running costs |
|
|
Finance payments |
$15,373 |
|
Fuel |
$2,666 |
|
Servicing |
$550 |
|
Tyres |
$469 |
|
Registration & CTP |
$1,037 |
|
Insurance |
$1,199 |
|
Total gross cost |
$21,294 p/a |
The total cost of running the Kluger for a year is $21,249. The costs don’t change, but how you cover them makes a big difference.
Payroll treatment
|
Personal finance |
DriverAutoPackage |
|
Gross salary |
$109,000 |
$109,000 |
|
Salary sacrifice |
$0 |
-$9,802 |
|
Superannuation |
-$9,000 |
-$9,000 |
|
Taxable income |
$100,000 |
$90,198 |
|
Income tax |
-$26,450 |
-$22,676 |
|
Employee contribution |
$0 |
-$10,513 |
|
Take home pay |
$73,550 |
$57,009 |
|
Running costs |
-$21,294 |
$0 |
|
Disposable income |
$52,256 |
$57,009 |
As you can see, even when driving less than 15,000 kilometres a year, salary packaging with Autopia is the cheapest way to own a car.
By sacrificing part of your salary you reduce your taxable income, and your income tax. By paying for a proportion of the costs after tax, through employee contributions, you don’t even have to pay FBT.
Although your take home pay has reduced, you’ve already paid for the Kluger, so you’re actually now better off to the tune of $4,753 a year.
Over the term of the lease, that’s a massive saving of $14,259.
Summary
Salary |
Vehicle |
Savings |
|
$100K |
Toyota Kluger |
$14,259 |
All of the above costs include GST