What is a novated lease?
A novated lease is a finance lease, with a separate document attached to it called a novation agreement. This agreement transfers the legal obligation of payment from you to your employer.
You remain the leaseholder, however by transferring the payment across, a number of financial benefits become accessible.
Your employer now pays for the lease out of your salary, before income tax is applied, just like your superannuation, so in essence you’re paying for your car (or cars) tax free.
Autopia also roll all the other costs associated with running a car into these payments, such as insurance, petrol, maintenance and servicing, roadside assistance etc, so these costs become tax free too.
And, because your employer is now paying for these items, you avoid paying GST,
so it really is the most tax-efficient way to own a car.
As you would expect however, the ATO has made the intricacies of this system
so complex, that unless you use the services of an expert, it’s virtually impossible
to derive the maximum benefit available.
And that’s where we come in. Novated leasing is all we do.
We’ve done the homework, and we know how to work the system when it comes to novated leases.