Defence Novated Lease: What is a Defence Novated Lease?
A defence novated lease is a salary packaging arrangement that bundles car-related expenses (including insurance, registration, fuel/electricity, servicing and replacement tyres) into pre-tax repayments and exempts them from Fringe Benefit Tax. It also reduces income tax and GST.
It’s an easy way for ADF members to get the car they want and save money on both purchase price and running costs. It’s simple, convenient and tax efficient. For more information about the defence novated lease minimum salary, click here.
Costs
Novated leasing is an excellent way for defence force employees to get into their dream car with a suite of extras at a discounted price. However, it is essential to understand the costs of a novated lease before committing to one. The best way to do this is to shop around and choose a company that offers a wide range of cars and extras. Also, selecting a local company is a good idea as they can be more trusted than national companies.
In salary packaging advertising, it is expected to see claims that novated leasing will not include GST on the vehicle purchase. However, this is untrue, as the finance company pays the GST on the purchase.
Nevertheless, there is still a benefit to salary packaging a lease as it will reduce your tax burden and give you access to GST savings on all car running expenses, including petrol/electricity, servicing, registration, insurance and replacement tyres. For these reasons, exploring a defence novated lease with Fleetcare is worth investigating.
Taxes
If you’re a Defence Force (ADF) member, a Department of Education employee or another government worker who needs to get around in a car, we can help you save with a novated lease. For more information about the defence novated lease minimum salary, click here.
This financial arrangement bundles all your vehicle’s running costs, including insurance, registration, fuel/electricity, servicing and replacement tyres, into pre-tax repayments and saves GST on those recurring expenses. It’s also exempt from Fringe Benefits Tax and can be transferred to a new employer if you change jobs.
It’s a three-way agreement between you, your employer, and the innovative leasing company Fleetcare. After you’ve used our Novated Lease Calculator to ensure you can afford the repayments deducted from your salary, it’s a simple process to apply. And because the financier gets payments from you each pay cycle before being taxed, they’re more confident they’ll be repaid in full. This makes novated leasing one of Australia’s most cost-effective ways to buy and run a vehicle.
Insurance
Novated leasing is a wise choice for Defence Force members, as it saves them money on car prices and running costs. It also lets them keep more of their salary in their pockets. A good novated lease provider will offer competitive prices and minimal fees. They should have experience in the field and be able to negotiate with car dealerships for the best deals on vehicle purchases and ongoing running expenses.
A novated lease is an all-inclusive salary packaging arrangement that allows Defence personnel to pay for their new car and its running costs from their pre-tax income, resulting in significant PAYG income tax and Fringe Benefits Tax (FBT) savings. Fleetcare offers a range of innovative novated leasing solutions, including comprehensive car insurance and fleet discounts.
You should choose a novated lease company that accepts direct debit payments to minimise fees. This way, you can ensure that repayments are withdrawn on time and in full every pay cycle. For more information about the defence novated lease minimum salary, click here.
Options
Whether you want a sleek sports car to beat the traffic or a beastly 4×4 for off-road adventures, a defence lease is one of the best ways to get your hands on your dream car. The arrangement allows you to bundle the vehicle purchase price and running costs into repayments made from pre-tax salary, reducing your taxable income.
When considering a defence novated lease, remember a few things. These include the interest rate, upfront discount, admin fees and residual payment. In addition, you should consider how the arrangement will affect other government benefits.