What is a Novated Lease?
A novated lease is a finance lease agreement between an individual (employee), their employer and a finance company. In this case, the employer makes monthly repayments on your behalf via a salary sacrifice program or car allowance.
Benefits for the employee:
No deposit payable
- Flexibility with the choice of vehicle to meet your business & personal needs
- You can take the vehicle with you when you change jobs
- Tax benefits as financing may be paid with pre-tax dollars (remembering there may be Fringe Benefits Tax to consider)
Benefits for the employer:
- An easy way to add value to an employee’s remuneration package
- The vehicle is the responsibility of the employee so there are no costs to the employer associated with disposal of the vehicle should the employee leave.
* We recommend professional advice be sought from your accountant, before proceeding with any finance arrangement.