How Australians can save on a new car and its running costs
How Does A Novated Lease Work?
Novated leasing involves three parties: your employer, a finance company, and you. It allows you to set up an agreement that takes your car finance payments directly from your employer, so it comes out of your pre-tax salary.
Whether it’s a new or used car, this allows you to bundle your car expenses along with your lease payments. This includes registration and insurance, as well as the cost of fuel, maintenance, tyres and car washing.
What Are The Benefits Of A Novated Lease?
1. Tax Savings
One of the primary benefits of a novated lease is tax savings. By having your lease payments and running costs deducted from your pre-tax income (or gross salary), you potentially reduce your taxable income.
2. Convenience
With all your expenses pre-budgeted, when tyres, servicing or registration comes due; a novated lease has you covered without needing to come up with funds.
3. Flexible Car Choices:
With a novated lease, you have the freedom to choose the car you want. Whether it’s a brand-new model or a reliable used one, the decision is entirely yours.
4. No Hidden Costs:
Clear Lease stands firm on transparency. There are no hidden fees or surprise costs. We believe in keeping things straightforward and clear for our clients. You’ll find all of this information directly on the quote provided by our team.
Unlock FBT Exemptions with a Novated Lease for Electric and plug in Hybrids
Through novated leases, businesses and employees are able to access attractive tax benefits as well as an FBT exemption. This means that the novated lease payment & running cost is taken out of the employee’s salary before taxes are applied, reducing their taxable income and offering them more take-home pay.