Novated Lease
What is Novated Leasing? Novated lease is essentially an arrangement to lease a new, an existing or used car. This involves getting into an agreement between the three key parties – employee, the employer and the financer/ Lease Company to treat employee’s car as company’s car for tax purposes. What makes Novated Leasing so popular? Novated lease ensures that the financing (lease payments) and the running costs of the vehicle are paid from the pre-tax income. This results in increased disposable income and reduced taxable income....
read moreWhat is LAFHA?
LAFHA essentially stands for Living Away from Home Allowance. As the name indicates this applies when an employee is required to live at a place which is away from his usual residence for work. This allowance aims at compensating the additional expenses incurred or disadvantages suffered owing to this temporary move. Period of being away from home should exceed 21 days to distinguish LAFHA from travel allowance. What all gets covered in this allowance? LAFHA is a fringe benefit. It typically covers an employer providing food and...
read moreWhat is Salary Packaging?
What is Salary Packaging? Salary Packaging is a way to restructure one’s income. It allows buying items from the pre-tax salary instead of the after -tax salary. This results in greater savings and lesser tax as the taxable income gets reduced. This actually benefits everyone – no matter how much money they make. What are the popular items to be covered in salary packaging? The commonly salary packaged items include: Vehicles Laptops Mobile phones Computer software Briefcase or any approved tool of trade Does salary sacrificing get...
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