Are you taking time off? You could be saving money while you're away!
If you’ve got a novated lease, it can help you save.
How can I save while on holiday?
If your car is parked at work while you’re away and no one can access it, you may be able to submit a car unavailability claim.
This can reduce your fringe benefits tax (FBT), putting more money back in your pocket.
Why does this matter?
FBT is calculated based on the assumption that your novated lease vehicle is available for private use every day of the year.
If there are days where it’s not available, like during a holiday, you can claim those days back.
This will reduce your total FBT liability, and ultimately the cost of your novated lease.
This isn’t a loophole. It’s a legitimate, ATO-recognized benefit, as long as you meet a few simple conditions.
What counts as “car unavailability”?
To claim unavailability, your car must meet all of the following:
- It’s parked at your workplace (or other employer-leased property)
- The keys are handed back and you don’t have access
- Neither you nor your family members can use the vehicle
- OR the car is being repaired and is unavailable for at least 24 hours
Show me an example: How does it add up?
Let’s say Priya has a novated lease vehicle valued at $30,000. The FBT liability for that vehicle is approximately $6,000 per year, which breaks down to around $16.44 per day*.
Priya heads overseas for a 10-day trip. Before flying out, she parks her car at the office and leaves the keys with her People & Culture team.
No one drives it. No one touches it.
When she returns, she submits a car unavailability claim for the 10 days she was away.
That’s $164.40 saved*. For doing nothing but going on holiday.
These savings are factored into your end-of-year reconciliation, so the more you take advantage of them, the better your final numbers will look.
How do I start saving?
If you’ve already got a novated lease and have a holiday coming up, chat with us or your payroll about how to lodge an unavailability claim. Even a short break can translate into real savings.
And if you’re still weighing up whether novated leasing is worth it?
It’s not the question, it’s the solution.
Tax savings, budget certainty, and clever benefits like this are why more Aussies are making the switch. Get in touch with our team to explore whether it’s right for you.
Need help?
We’re here to explain the details, walk you through a claim, or show how novated leasing could work for your next car. Reach out for a quote or chat with our team today.
*The information supplied on this page is provided as an information guide only. It contains Remunerator (Aust) Pty Ltd ACN 074 423 966 interpretation of the current Tax Legislation which is subject to change at any time without notice and should not be relied on as a substitute for legal or other professional advice. Example uses income tax rates effective 1st July 2024.