Novated Lease

Novated leasing is a lease arrangement that addresses the differing needs of employers and employees, to provide a solution that benefits everyone.

A Novated Lease is an agreement between your employer, yourself (the employee) and the financier, which amounts to a transferal of the obligation to meet the lease rentals under the finance lease from yourself to your employer. As an employee, a Novated Lease enables you to drive the car of your choice and to take that car with you if you change jobs.

As an employer, it eliminates the financial burden of having to have the vehicle listed on the company books and of having to dispose of it should the employee leave. You simply pay the lease rentals on behalf of the employee during their employment with you.

Key Features
Employees

• Enjoy unconditional use of the car of your choice
• Because the lease is portable - you have the option to take the car with you when you change jobs
• Flexibility in structuring your remuneration package
• You may be able to take advantage of fleet discounts and other benefits
• A Novated Lease preserves the equity you have built up in the car, so you can use it to upgrade or change over to a new vehicle Employers
• With balance sheet ratios unaffected by motor vehicle liabilities, the company's borrowing power remains intact
• You can attract new employees, or provide incentives by offering to package the motor vehicle of their choice as part of their salary
• Your only obligation is to pay the lease rentals
• No unwanted car or disposal problems when the employee leaves, as your lease obligation ends with their termination of employment
• The company can claim eligible income tax deductions for lease payments and motor vehicle running costs

Options

• Flexible repayments - lease rentals are met by the employer as part of your salary package
• Flexible terms - choose the length of the lease. The life of a lease usually depends on two things:
• how much you want to pay per month, and the life of the asset
• Flexible Purchases - use the lease to purchase goods, with a minimum finance amount of $12,000

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