A Novated Lease is a form of salary packaging a car. A Novated Lease is a three-way agreement between you, your employer and the car finance company. The money that you use to pay for your vehicle through this type of agreement is your pretax earnings. This is deducted through your payroll team at work and then the remaining amount of salary you earn is paid to you.

For example: You novated lease salary packaging repayment for the car is $1,000 a month and you earn $6,000. The $1,000 is taken from your salary before you are taxed. You are then taxed on the remaining income, in this example $5,000. Therefore your taxable income has been lowered by $12,000.  This is $12,000 you do not need to pay your marginal tax rate on! This is why Novated Leases, and this form of salary packaging is becoming extremely popular.

When you purchase a new car with a novated lease company they often get massive savings on all new cars. This means you are more than likely going to save even more money with a novated lease.

Salary packaging is a great, tax effective way to purchase a car. Speak to our team of expert novated lease consultants by making an enquiry through the contact page. They can use the novated lease calculator to calculate how much you can save and the difference to your take home pay.

What are you waiting for? Get a novated lease on salary packaging from your employer today!

Other sites which may be of interest to you include these Australian favourites:
• Car Lease
• Car Finance