- How does novated leasing compare to other types of car finance?
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:
- You save on income tax
- Remunerator's buying power allows you to save on the purchase price of your new car
- You gain exclusive access to discounts from a wide network of tyre and servicing suppliers
- You don't pay GST on all your car's running costs
- Novated leasing aids in budgeting - all your car related expenses, running costs and finance payments are bundled into one affordable payment
- Flexibility in the choice of your car - you can lease any car, new or used
- No upfront deposit for your new car required
- How much do I need to earn to benefit from leasing?
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!
- What is included in the regular deduction?
This includes payments for the car, fuel, maintenance, insurance, registration, tyres and repairs.
- How long can I lease my new or used car for?
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.
- How much do I have to drive to benefit from leasing?
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.
- Will my interest rate change during the lease term?
No! Your novated lease interest rate is locked or fixed for the life of the lease. This means that there are no surprising rate changes!
- Do I have to travel the exact kms that I nominate in my novated lease?
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.
- What is the employee contribution method?
Your novated lease payments use a combination of before and after-tax payments. This is known as the Employee Contribution Method (ECM).
Calculating your payments using ECM helps you achieve greater savings as well as other benefits.
- How do I know how much to budget for petrol and maintenance on each car?
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.
- Can I package more than one vehicle?
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.
- Can I package the car I already own?
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.
- Can I get a novated lease on a used car?
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.
- What do I do if I've lost my fuel card?
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.
- How does 'days not available' affect my target kms?
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.
- Why is my Employee Package Authorisation/Confirmation Report different to my novated lease quote?
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.
- What is the residual value?
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.
- What happens if I change employers during my lease term?
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.
- Can I terminate my novated lease early?
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.
- What happens at the end of my lease?
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:
- Upgrade to a new car
- Extend your existing lease
- Pay out the lease