How Novated Leasing Works
Every car needs fuel, tyres, maintenance, registration, insurance and in most cases, some form of finance. Salary Packaging or a novated lease simply lets you pay for these expenses before tax, so you pay less tax.
A Novated Lease is simply an arrangement between a leasing company, an employer and an employee. The arrangement allows an employee to sacrifice (hence the term Salary Sacrifice) a portion of their wage back to the employer, who uses these funds to pay the vehicle’s running costs.
This means the employee pays less income tax and benefits from the employer’s GST claim, whilst retaining full control of the vehicle for 100% personal use.
Convenience and no more big car bills!
As all vehicle budgets are included, you will never have any more major vehicle bills.
A fuel card pays for fuel, tyres and servicing. When your registration and insurance fall due, simply send to the salary packaging Company for payment.
A Novated Lease is a great budgeting tool, whist saving you thousands in tax.
Does it have to be a new car?
A Novated Lease is available on any new, demo or used vehicle.
The general rule is the vehicle cannot be any older than 12 years at the end of the lease. For example, a 7 year old car can be leased for 5 years.
You can even take advantage of the tax saving by arranging a Lease-back on a car you currently own or have on finance.
Who can drive the Car?
You have no restriction on who you allow to drive your car.
As long as the driver is lawfully covered under your insurance policy they are free to drive the car.
How much will a Novated Lease save me in tax?
Return to your Broker's website and select the "Novated Lease Calculator" link in the main menu
Can I get a Fleet Discount?
Yes. The Salary Packaging Company Vehicle Solutions is listed on most car manufactures lists as a Novated Leasing provider.
Therefore, you automatically qualify for fleet pricing.
WHY VEHICLE SOLUTIONS NOVATED LEASE IS THE RIGHT CHOICE
We have partnered with Vehicle Solutions to manage the Vehicle Salary Packaging Solution
Vehicle Solutions Australia is Australia’s most trusted Novated Lease provider.
Vehicle Solutions Australia provides Novated leases to over 85 employers throughout Australia including ACT Government, and through the “Self-Managed Lease” option they provide a far cheaper Novated lease to all SA Government Employees.
By choosing the right provider you can reduce the payments being deducted from your salary. Get the correct information, the cheapest car price and the lowest lease payment.
Clear, simple information and the ability to ask questions is central to this process.
All Vehicle Solutions do is Novated Leasing, so they can offer a more competitive, transparent quote, as well as all the services you expect
They offer a completely free, no obligation quote system that is transparent and very accurate.
They don’t force you to submit your personal details before offering a quote. You can quote as many times as you need, and we are always here to explain the quotes in detail.
This is the only way to understand the process and make a more informed decision.
Services Vehicle Solutions offer that you should expect from your supplier
24/7 Online Access to your Account
You will have access to a “Employee Log In”. This will take you to a secure site that provides you with information on your entire transaction list from the very beginning. This is set out in a easy to read bank statement format showing all of the DR’s and CR’s and a running balance.
The site also allows you to edit your personal details such as name, address and contact details, change your password, access our frequently used forms to complete claims and odometer readings.
Every vehicle package comes with a fuel card.
The fuel card that we use is Motorpass simply because it allows any employee to purchase the widest range of vehicle running costs in Australia. This includes a majority of fuel stations, vehicle service centres, and most tyre, windscreen, and battery retailers.
The monthly account is sent directly by Motorpass to us and we pay all expenses. No need to find that extra bit of cash to pay for the fuel. Just enjoy the convenience that all of your running costs are paid.
Through a novated lease the GST on the vehicle is not financed.
As the running costs of the vehicle such as fuel, tyres, servicing, registration and insurance are all paid through the employer, who can claim a majority of this GST this is passed back to you automatically in the salary package.
In most cases if a vehicle is in stock we can process a Salary Package and have you driving your new or used car within the week.
Simple, Easy to Understand Language and Documentation
We have put a lot of research into the way we present, quote, document, and manage your salary package.
The one single aim is to ensure you have complete clarity and transparency of the service and products on offer before entering into any decision.
Fast Daily Claims Processing
All claims are processed and back into your bank account in 24hrs from the time we receive them.
No Administration | No Cost to Employer | Full Reporting | Reduce Company Vehicles
Our Partner Vehicle Solutions Australia provides a simple, efficient, and free Salary Packaging service to all employers.
Salary Packaging for most employers, including Government departments, is the cornerstone to employee benefits and rewards. Vehicle Solutions service is quick and easy to establish and best of all can save your company money and time in administration.
Salary Packaging through a novated leasing, provides the perfect alternative to company vehicles. No more administration, no more receipts, and if an employee leaves, the vehicle leaves with them.
Reward all Employees with Vehicle discounts, Income Tax and GST Saving
The most popular item to Salary Package is a vehicle. Employees can begin saving by using our unique new vehicle quoting system.
Our experienced staff can guide each employee through one on one salary packaging quotes explaining detail and in plain English how Salary Packaging works.
Only then do we establish a package and the employee begins their tax savings. This is a true reward to all staff at no cost or risk to the employer.
Cost Neutral to All Employers
Managing a complete Salary Packaging service internally is both time and resource demanding; receipts, claims, FBT reporting, GST claims, fuel reconciliations, FBT and income tax regulations….
We provide the complete service to employers of any size for FREE. Full FBT and GST reporting and no reconciliations.
Reduce Company Vehicle Costs and Provide Staff with Vehicle Choice
Every business looks for ways to reduce overheads. Company Vehicles are a burden not only on a company’s finance but on administration.
Fuel receipts, insurance, purchase, disposal, fleet management, vehicles sitting idle, FBT calculations and costs. Salary Packaging offers the only real option to reduce these costs. This is a “win win” position.
Employees get their choice of vehicle depending on their needs and we manage every cost on that vehicle. If the employee leaves the vehicle leaves with them. No risk all reward.
Size Doesn’t Matter
We provide our service to all employers irrelevant of size. Our employers’ range in size from small employers of 5 to large Government accounts of 20,000+ employees.
The employer is never at risk. All vehicles are managed under the ATO required novated lease.
This is simply a finance contract for the lease with a novation deed attached. The deed binds the three parties together whilst the employee works for the employer. The employer, through a salary sacrifice arrangement, will make the payments for the vehicle to the leasing company through the Salary Packaging Provider.
This means that if the employee leaves employment for any reason the deed is automatically broken, and the employee is then responsible to make the finance payments.
NO RISK to the employer.