The start of the new Fringe Benefits Tax (FBT) year on April 1 is the perfect time to maximize your savings with novated leasing.
By leasing your car early in the FBT year, you can optimize every dollar, simplify budgeting, and take full advantage of tax benefits. Planning ahead ensures a smoother experience, giving you peace of mind when it comes to managing your vehicle expenses.
What Is the FBT Year and Why Does It Matter?
The FBT year runs from April 1 to March 31. If your employer offers salary packaging, this tax period determines how benefits like novated leasing are taxed. Since fringe benefits are taxed differently from regular income, it’s essential to structure your lease in a way that takes full advantage of potential savings.
Leasing early in the FBT year allows you to spread post-tax deductions across the full year, reducing the need for mid-year adjustments and making budgeting easier. It also ensures you can maximize employer-provided benefits while avoiding last-minute stress when deadlines approach.
5 Benefits of Leasing at the Start of the FBT Year
Maximise Your Tax Savings
Since the FBT year resets on April 1, starting your lease early ensures you get the full tax benefits over the entire year. Novated leasing allows you to reduce your taxable income by using a combination of pre-tax and post-tax dollars to cover your car costs, potentially lowering your annual tax bill.
The earlier you start, the longer you benefit from these tax advantages, allowing you to keep more of your hard-earned income while enjoying a hassle-free car ownership experience. Whether you’re leasing a brand-new car or transitioning a current vehicle into a novated lease, an early start makes a significant difference in the long run.
Simplified Budgeting and Planning
By bundling running costs like fuel, maintenance, and insurance into one regular payment, you gain predictability and control over your budget. Rather than managing multiple payments and unexpected expenses, novated leasing consolidates all your vehicle costs into one simple, pre-arranged structure.
Starting your lease at the beginning of the FBT year gives you more time to adjust and manage your expenses effectively. Additionally, spreading post-tax payments across a full year ensures that any adjustments are minimal and that you aren’t left with a financial burden later in the FBT year.
Access to the Newest Car Models
Many manufacturers release updated models in the first half of the year, meaning leasing early gives you access to the latest features and better resale value. Now is the time to explore new arrivals like the Tesla Model Y or the Ford Ranger, ensuring you drive a vehicle with the newest technology, safety enhancements, and fuel efficiency improvements.
Additionally, leasing a newer model earlier in the FBT year ensures that you gain the most value from your vehicle. With newer models often holding stronger resale value, an early lease start helps you maximise potential benefits when the time comes to upgrade.
More Opportunities to Explore Salary Packaging Benefits
The start of the FBT year is a time when many employers actively review and promote their salary packaging programs. This is the perfect time to learn more about novated leasing, as organizations often provide increased communication and resources during this period.
You’ll see us on-site more, hosting information and consultation sessions to help you understand the benefits of novated leasing. Whether you’re new to salary packaging or looking to optimize your current arrangement, this is an ideal opportunity to get expert advice.
Take Full Advantage of the EV Discount
If you’re considering an eligible electric vehicle, leasing at the start of the FBT year maximizes your benefit from the government’s FBT exemption for EVs. This means greater savings over the full year, as you’ll be able to make the most of the tax-free status from day one.
Electric vehicles are becoming an increasingly popular choice due to their lower running costs, environmental benefits, and government incentives. Starting your lease early ensures you lock in these advantages while enjoying a longer period of tax-free savings.
Get Started Today
By leasing your car at the start of the FBT year, you can enjoy a full year of tax savings, better financial planning, and access to the latest models. Take advantage of salary packaging benefits, explore new car options, and lock in your tax benefits for the entire year.
Don’t miss out—request a quote today and start maximizing your benefits!