How does a novated lease work?
A novated lease is a three- way agreement between an employer, employee and a financier whereby an employer leases a car on behalf of the employee. When you take out a novated lease, part of your payments come from pre-tax salary.
What is a Novated Lease Salary Packaging?
A salary packaged novated lease has significant advantages and benefits to both employees and employers. Commonly used as part of Salary Packaging arrangement enables employers to provide a significant financial benefit to the employee at little cost to the employer.
What is a Novated on a car?
Novated Leases include all expenses such as car registration, fuel, servicing and insurance are included in the one repayment. This is normally deducted from your salary and affectively appropriated to your pre and post tax salary therefore offsetting against your tax and then saving you money.
Benefits of a Novated Lease
Responsible lending criteria applies – “Future Finance & Insurance” recognises the importance of responsible lending, as prescribed in the “National Consumer Credit Protection Act 2009″