Novated Leasing
A Novated Lease refers to the unique lending agreement where a user leases a vehicle and in turn, sub-leases or novates it to their employer. The lease payment is done from the user’s pre-tax income and the employer holds the novated leases as long as the user is employed with them. Of course, the full liability of repaying the lease amount rests with the user and not their employer. However, novated lease is a great way to make some great saves on taxes and save your take-home salary from taking a dip even with a lease to pay off.
We have formulated a novated lease policy that is flexible, simple, cost-effective, and holds substantial benefits for both the users and their employers. Some of these key benefits include:
- Using pre-tax earnings to own a vehicle
- Saving an extra 10 per cent on GST
- No prior deposits required
- Flexible repayment schedule
- Provisions to upgrade to new vehicle whenever you want
Benefits for employers:
- Better employee retention
- Reducing WorkCover insurance
- Lesser payroll taxes
Fully Maintained NovatedLease
A fully maintained novated lease is an extension of a three-way lending agreement between a finance company, a user and their employer. This method entails salary packaging not just the value of a vehicle but also its operating costs. Financing & Co offers its valued customers the benefits of fully maintained novated lease that covers factors such as fuel, service and maintenance, insurance, vehicle registration and accident management in addition to the value of the vehicle. We bring to you a tax effective leasing solution at the most competitive interest rates, and flexible loan terms and repayment options. Benefits of a fully maintained novated lease are:
For User:
- Savings on income tax and GST
- Freedom to choose a vehicle that best suits your needs
- Full control over the operation and maintenance of your vehicle
- Portability of lease with change of jobs, as long as your new employer offers salary packaging
- Retaining the equity built up on your vehicle
For Employers:
- Offering flexible and cost-effective pay packages to your staff with no additional costs
- No residual risk or repayment liability
- Savings on WorkCover premiums and payroll tax