Novated Leasing FAQs
Your common questions about novated leasing answered.
Remunerator work with you to educate you on all the benefits of salary packaging and novated leasing. We've compiled all frequently asked questions from our customers here for you.
Still have a question unanswered? Reach out to our friendly customer service team today.
Here are some helpful answers to our most frequently asked questions.
There are many items that the ATO allows to be paid as a fringe benefit from pre-tax income. The specific benefits available for you depend on which industry sector you work in and the program that your employer has selected.
Your payroll will deduct the nominated portion of your salary before tax is applied. The funds will be transferred to us to make payments to the benefits you have been chosen.
This effectively reduces your taxable income with only the remaining portion of your salary subject to PAYG tax and will be reported on your payment summary for individual tax returns accordingly.
Please note: if you work for a health or charitable organisation that is eligible for a threshold, your payment will report the gross up value.
Generally there is no effect to your salary package if you receive a pay increase, you may however wish to add a benefit or increase your budgets to maximise your entitlements.
A decrease in your pay could impact the amount we are able to deduct from your pay and the payments we need to make on your behalf. Please contact the customer service team urgently to determine what action will have to be taken.
Your package will be reconciled to balance the deductions from your pay and payments made to ensure that the correct amount of fringe benefits tax has been applied to your package.
Any shortfall or overpayment will then be taken into account by your employer in your termination pay.
As your salary package provider, we manage your account for a small fee as negotiated with your employer. This is included in your package and is paid out of your pre-tax salary.
The fee does not attract fringe benefits tax or contribute to any threshold limits.
Salary packaging increases your assessable income, which will affect how much HECS/HELP you are required to pay for that financial year. You will need to advise us and your payroll if you have a HECS/HELP debt. Depending on individual circumstances, your package may affect your HECS/HELP repayments whilst still providing you with the benefit of savings through your salary package.
Salary packaging does not usually affect Centrelink payments. However, this is subject to individual circumstances.
Child support payments will be based on an individual's taxable income after salary packaging plus the reportable fringe benefits amount.
We recommend that you seek further, specific advice regarding your circumstances from a financial advisor or tax accountant.
Yes, you may be restricted to a range of benefits approved by your employer and to only the benefits appropriate to your industrial sector. Your employer can provide you with their approved list and our customer service specialists are happy to clarify any questions.
Get in touch with our customer service team here.
Circumstances change and sometimes it's time to say goodbye. We're sorry to see you go, simply fill out the form below to terminate your Remunerator Salary Package.
Terminate My Package
Are you starting with a new employer and would like to continue experiencing the benefits of salary packaging?
We'd be thrilled to work with your new employer to enhance your employee benefits program!
Your common questions about novated leasing answered.
There are many advantages associated with novated leasing your new car compared with other types of finance such as cash and a car loan.
The main benefits include:
Novated leasing is for all income earners!
If you are paying tax and drive a car, there are thousands in savings you could make with a novated lease.
You are not limited to luxury and expensive cars, or even new cars.
Remunerator Novated Leasing is designed for employees to get into the car they want, new or used, at fleet network discounts. Not to mention all the tax savings that come along with a novated lease!
This includes payments for the car, fuel, maintenance, insurance, registration, tyres and repairs.
You have the flexibility to lease your car for a period of one to five years.
At the end of the lease term, you can upgrade into a new car or refinance your current leased car.
There is no set number of kilometers you must drive to have or benefit from a novated lease! Our customers save on tax and GST regardless of the kilometers you drive.
Fringe benefits tax (FBT) is based upon the value of the car (if it is new it will be the purchase price less stamp duty and registration). The distance you travel will not affect the FBT payable.
Your petrol budget set in your salary package will be based upon your estimated distance that you travel in the year. Should you expect to travel more, there is a risk you will exhaust your petrol allowance. Should this occur, contact us to amend your salary package as soon as possible.
Don't worry if you are travelling less than estimated, at the end of the FBT year you can either claim or rollover any used petrol allowance.
Remunerator's consultants will guide you through a series of questions to determine your budgets for running you car each year.
Your budgets for fuel and maintenance are based on how many kilometers you travel each year, how many times you need to service your car, and all other costs that are required to run your car including insurances, tyres, registration, and CTP (if applicable).
Your novated lease budgets are flexible and can be adjusted at any time throughout your lease term.
Your ability to package will be based on affordability. It is between you and Remunerator to determine your most appropriate salary package and your employer does not take any responsibility for the suitability for any package structure.
Yes! You can still save GST by salary packaging your own car with an Associate Lease.
An Associate Lease is an agreement where an associate of the employee (typically spouse or partner), leases an existing or replacement car to the employee's employer. The employer then provides the car to the employee via a pre-tax salary sacrifice arrangement.
This way you pay no GST on your running costs such as fuel, maintenance, insurance, registration and repairs. Plus you make all the running cost payments from your pre-tax salary, so more tax savings.
Yes! Novated leasing is available on new, used and demonstrator vehicles.
We find our customers make the most savings on cars purchased through dealerships as you are not required to pay the GST component of the car on a novated lease.
You will need to advise Remunerator straight away and we will cancel the card and order a replacement one.
Whilst waiting for a replacement card, ensure you keep the receipts for your fuel expense and claim this as a reimbursement.
If you are using the Employee Contribution method to offset any FBT that would be otherwise payable, there is no impact should your car be deemed to be unavailable at any point during the year.
Generally, your quotation will be based on a full year of salary packaging, therefore spread over 12 months.
Depending on when your package starts this may not be the case and your package will be based on the months remaining in the FBT year (April 1st - March 31st).
For example, if your package commences in November, your deductions and payments will be established over the 5 remaining months to the end of March.
The residual value, or balloon payment, represents the value of the vehicle at the end of the lease. This payment is required by the ATO at the end of your novated lease term.
Our novated leasing specialists will inform you of the residual value of your car when providing you with a novated lease quote.
In the case you change employers during your novated lease term, your novation agreement with your existing employer ends.
When moving to your new employer you novated lease can be transferred to them should they include it in your salary package.
Our novated leasing specialists are here to guide you through the process of moving employers and it's affect on your lease.
If any of your circumstances change, it is important to notify Remunerator as soon as possible.
Remunerator consultants will work with you to provide a suitable outcome including how to make the payments for your lease direct to your financier.
Our novated leasing specialists are here to guide you through your options as smoothly as possible when your lease term is up.
The three most common options at the end of your novated lease include: