A novated lease arrangement is governed by both fringe benefits tax and income tax legislation and is also approved by the Australian Taxation Office. It is essentially a three-way arrangement between an Employee, Employer and the vehicle Finance company.
How it works:
- A vehicle is leased from a Financier in the Employee’s name
- The responsibility for the lease rental payments and all other responsibilities under the lease is transferred to Employer for the term of the Novation Agreement
- In addition to the lease payments, all running costs (i.e. annual registration and insurance, fuel, servicing and repairs) in relation to the leased vehicle are also paid through the employee’s salary package
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Fully Maintained Novated Lease:
Simplygreen provides a ‘fully maintained novated finance lease’ (FMNL) via its greenCar™ programme:
- Provide a vehicle buying service for new & pre-owned vehicles, with access to substantial vehicle discounts
- Arrange finance leases at competitive rates
- Obtain the necessary approvals for the customer to proceed when ready
- Organise comprehensive motor vehicle insurance
- Calculate a vehicle expense budget based on the estimated number of kilometres to be travelled, covering the entire period of the lease for all operating costs associated with the motor vehicle including fuel, maintenance, registration, tyres, insurance and roadside assistance
- Ensure the vehicle is operated entirely using the vehicle maintenance program
- Provide monthly Activity Statements that show the actual vehicle expenses incurred
Calculate your savings in less than 20 seconds with our Novated Lease Calculator.
