Thread: Novated Lease

Talk to your accountant Andy. Tax rules have changed so leasing/salary packaging of vehicles is less attractive now.

Hi Ben.
From what I read they have reduced the FBT tax that an employee can write off by contributing to the lease.
In my case I dont pay any FBT.
Andrew

Novating can be quite complex because there are so many variations to bring into the lease arrangement. My wife has a rippa on her subaru but there are terms and conditions that must be maintained...here is a link with some good info

Novating your current vehicle*•*Novated by Fleetcare

My fortnightly costs are $978 with a residual of $22,800 after 60 months on a MY12 D4 SE SDV6 with HiICE and eDiff. The FBT bracket for my lease I need to travel 25K per annum.

Although that is with about $8K FBT exemption (granted to all charity and public benevolent instution employees by the ATO).

My lease has fuel, servicing, wash, insurance, tyres etc included but if annual budget is exceeded I have to make up difference or get a refund if less than the budget.

But importantly talk to your pay office and your tax accountant.

These might give you an indication of the costs, but probably won't cater to your specific FBT situation.

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I dont think there is anything simple about a novated lease, especially if you are doing it to save money. For me the benefits were minimal, but compared to other methods of financing it was a better deal. There is a psychological effect from not adding a huge amount onto your mortgage. But financing through your mortgage may be cheaper if you can be very disciplined. I can't so for me the novated lease was better.

Originally Posted by Lotz-A-Landies

My fortnightly costs are $978 with a residual of $22,800 after 60 months on a MY12 D4 SE SDV6 with HiICE and eDiff. The FBT bracket for my lease I need to travel 25K per annum.

I have a similar car with similar lease. You might also be able to get LR to throw in their cooperate package, as I did, which gives you free servicing and hence brings down the fortnightly payment.

Although that is with about $8K FBT exemption (granted to all charity and public benevolent instution employees by the ATO).

Just hope the ATO don't decide to change the status of your employer half way through the lease. That happened during my last lease term . Caused plenty of grief to a lot of people.
Otherwise (and in spite of) it works out OK for me, not on a Landy though, just a daily driver for my wife.


Martyn