Novated Leases
Car Novated Leases
Statewide's core salary packaging service is to provide financial and income tax information and explanations about novated leases to Government and private employers and employees; and, to arrange, organise, supply, establish, manage and administrate novated lease packages for employers and employees as required.
What is a Car Novated Lease?
- A three way car lease agreement between the employee, employer and financier.
- Obligations under the employee’s car lease are transferred from the employee to the employer through a Deed of Novation.
- Pre-tax payroll deductions are made to cover these obligations from the employee's salary. The deductions cover the car lease payments and running expenses. The pre-tax deductions reduce the employee's taxable income. This means the tax deducted from the employee's salary is reduced as well.
- The GST paid by the employee on the car's running expenses may be recovered by the employer and returned to the employee.
- The employee pays out any remaining obligations at the end of the lease, or if employment ceases during the lease.
How does a Novated Lease save me money?
Income Tax Savings
- Part of the vehicle leasing and running costs are paid using pre-tax dollars.
GST Savings
- Purchase Price – The amount financed excludes GST that is normally payable when purchasing a car.
- GST on finance payments and running costs (including fuel, maintenance, repairs, tyres and scheduled servicing) are recovered and credited back to the employee’s salary sacrifice account.
Concessional FBT Treatment
A novated lease transaction receives concessional FBT treatment under salary sacrifice. Care is needed prior to entering into a novated lease, that the FBT implications and lease terms are understood. Statewide will explain in detail, all of the issues and potential issues with a novated lease. A novated lease can be a very cost-effective way to own and operate a motor vehicle.
Fuel card(s) will be issued to the employee for their convenience.
What are my Novated Lease Options?
Buying a car through a novated leasing arrangement does not restrict or reduce your options. You can:
- Choose a car that suits your lifestyle and budget
- Choose a new or a used car or
- Statewide can arrange a ‘sale and leaseback’ on the car you are driving now.
- Lease terms from 12 to 60 months.
Car Pricing Service - something for free!
Our goal for clients is to ensure that when a client packages a novated lease the car purchase price is as cheap as it can be. Whether the client uses our price or merely uses the price to negotiate a better deal themselves is irrelevant. It is simply the best price that can be negotiated regardless. Having said that, we have a dealer network that readily and competitively prices vehicles for our clients.
Fleet Pricing Discount!
Statewide Novated Leasing Pty Ltd is registered with some of the largest motor vehicle manufacturers in the world as fleet providers. As such, any fleet discount is passed to the client. There are no hidden procurement fees.
