As an Employer you can allow your staff to participate in salary sacrificing a motor vehicle and take advantage of tax savings.
A novated lease is a three way agreement between your employee, the lease company and you (the employer) under which the Employee leases a vehicle from the lease company, you make the lease payments on behalf of your employee and deduct the cost from the employee's pre-tax income by way of a Deed of Novation. Any FBT obligation is eliminated by utilising the Employee Contribution Method.
- No capital expenditure - great for balance sheet
- Better containment of vehicle costs
- Straightforward and meaningful monthly reporting available online 24/7
- Promotes a consistant vehicle policy that still allows individual choice
- May be offered to all levels of salary-packaged staff within an organisation
- Assists with staff recruitment and retention
- Obligation ceases if the Employee leaves your business