Whether you’re an employee or an employer, novated leasing is one of the most tax effective and flexible ways to finance your next car, saving you considerable money on tax and GST. Here’s how it works and why it’s worth considering.
If you’re an employee
Fleet discounts on the price of the car, servicing and tyres are just some of the benefits on offer with a novated lease. A novated lease allows you to use some of your pre-tax dollars to pay for running costs, allowing you to save an average of $4,132 per year, making a novated lease one of the most financially sound ways to purchase and run your next car.
So how does it work?
It’s simple: you choose your dream car and our sister-company, beCarWise does the rest. They tailor a quote for you and once you’re approved they take care of the details and the setup with your employer; payment of the lease and running costs is done with a simple, regular payroll deduction.
As a beCarWise customer, you’ll also benefit from:
- Savings on GST payable on the purchase price, repayments and running costs of your new car;
- Discounts on servicing, tyres and batteries, along with an easy-to-use fuel card;
- Monthly driver reports allowing you to keep track of how your budgets are going with at-a-glance ease.
Choices, choices, choices
Under a novated lease, you have the flexibility of a new, used or existing car and a choice of term from 12 to 60 months. Additionally, when your lease is up you can choose to keep and re-novate for an additional term, pay out and keep your vehicle, or trade up to the latest and greatest.
You can also have more than one lease at a time, use your new car for business or personal purposes and often don’t need to drive a set number of kilometres over the life of the lease.
How does it work for employers?
It’s easy as 1, 2, 3…
Step 1. beCarWise procures the employee’s car of choice at fleet discounts not available to individual buyers. They work with them to tailor a package that suits their needs.
Step 2. They work with your payroll department to create the payroll deductions and assist your business with the setup process. They handle the setup, determine the deductions and supply you with easy-to-understand information to get things underway and they’re always on hand to answer questions you may have.
Step 3. You reduce your company tax, reward your employees and become an employer of choice with greater staff retention and reduced turnover costs. With employees saving an average of $4,132 on average per year, it’s one of the easiest ways to keep your employees happy.
Want to know more?
beCarWise is a nationally recognised expert in novated leasing, they have the knowledge and experience you need to make an informed decision. Give them a call on 1300 734 500 to learn more, or visit www.becarwise.com.au to calculate your savings today.