A new car, a new way

A novated lease is an agreement with your employer and a finance company that allows you to lease a new or used vehicle through salary packaging. This means that part of the vehicle purchase and all running costs are paid for with your pre-tax income, making the arrangement very attractive in some cases.

In determining the benefits or tax savings, the specifics of the arrangement need to be considered. These considerations include:

• your taxable income
• the industry you work in
• job security
• the cost of the vehicle
• the amount required to be salary packaged
• the total vehicle expenses which is dependent on the use of the vehicle

As all of these factors are specific to an individual, one cannot assume that the tax saving is equal for all or that a tax benefit will even exist. We encourage you to give us a call to discuss your circumstances with one of our skilled Accountants.