Novated Lease

Posted by Designer on Mar 27, 2015 in Post | 0 comments

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. The savings from this arrangement makes it a popular.

Does this imply that the vehicle can only be used for official purpose?
No, the vehicle can be used for work or leisure.

Does IPS guide and process Novated Leases?

Yes, of course. Please feel free to email us or call us for further details. Salary packaging can include vehicles, parking and fuel expenses too.