Novated Lease

The main features & benefits of a 'Novated Lease' are

• It is mainly used by employees, for salary packaging of a car, for their employees.
• The employee usually leases the car on the agreement that the employer agrees to take on the full obligations under the lease agreement
• It is most suited to any employee who wants to include a motor vehicle as part of their salary package, as long as their employee does offer salary packaging as an option for their employees
• FBT, Fridge Benefit Tax Is payable on the vehicle, and expenses are usually passed onto the employee
• The FBT amount is calculated on the kilometres travelled each year, as the high the kilometre usually means the lower the FBT tax
• Where the amount financed is below the depreciated limit being $57,466, the employer claims the lease rental as the business expense.
• Where the amount is above the depreciation limit being $57,466, the employer claims the interest charges and depreciation up to the value of the depreciation limit being $57,466.