A Novated Lease is a great way for employees to get into the car they want while gaining tax advantages through salary packaging and you don’t need to be using the car for business use to get the benefits of a Novated Lease.
A Novated Lease is an agreement between a lender, the employer and the employee. The employee leases the vehicle from the finance company under their own name, and the employer agrees to make all payments due under the agreement. The employer covers these costs via a salary package agreement with the employee.
By entering into a Novated Lease, the employee’s monthly lease rental is deducted from their gross salary leading to possible tax savings.
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If you have any questions or would like to get more information about a Novated Lease, email us and one of our experienced finance consultants will contact you shortly.