Employees can maximise their take-home pay by capturing all their vehicle finance and running costs into one deduction via their employer’s payroll, achieving significant tax savings for most PAYG employees. Novated Leasing has become a highly popular method of financing private vehicles due to the attractive tax savings that employees can gain.
A novated lease consolidates the finance and running costs of the vehicle into an employee’s pre-tax income, which ultimately reduces the amount of income tax employees pay. Pre-tax deductions are also exclusive of GST, which means you save the GST on the purchase price of the vehicle and most of your running costs.
It’s as easy as selecting the car of your dreams!