Novated leases combine the cost of a car and its running costs, such as fuel/electricity, servicing, registration, insurance and replacement tyres, into one monthly payment. Bundling these expenses means they are tax efficient and exempt from Fringe Benefits Tax.
A novated lease is an arrangement between you, your employer and the leasing company. It reduces your taxable income and increases your take-home pay. For more information about the defence novated lease minimum term, click here.
Minimum Term of 1 Year
Novated leasing is a great way to get behind the wheel of your dream car without draining your savings. It allows you to bundle the cost of your vehicle and its running costs into your pre-tax salary, significantly reducing your taxable income. In addition, your employer assumes the financial risk of the lease.
Whether you want a sleek sports car to beat the traffic or a beastly 4×4 for your off-road adventures, a defence lease is one of the best ways to get there. You can add extras like a bullbar, tow bar, snorkel, and winch for a reasonable price.
Minimum Term of 2 Years
A novated lease is part of a salary packaging arrangement that allows Defence members to pay for their car and all its running costs, including insurance, servicing, replacement tyres, registration and repairs from pre-tax income. It enables significant PAYG income tax and Fringe Benefits Tax (FBT) savings.
Nominating a vehicle through a novated lease is simple and easy for Defence personnel. The vehicle’s purchase price and associated running costs are deducted from an employee’s gross wages before FBT is applied, and GST is remitted to the ATO.
Novated leases are unlike standard finance and leasing arrangements, as the financier gets repayments directly from the salary each pay cycle, giving them a better chance of ensuring that the lease will be repaid in full. However, it is essential to consider your future requirements and ensure that the repayments/salary deductions are affordable for you in your current and future circumstances. In addition, it is also worth considering whether you may need to make additional payments or change the term of your novated lease in the future.
Minimum Term of 3 Years
Novated leasing is an excellent way for Defence members to save money on their vehicle and running costs by combining these expenses into their pre-tax income. Bundling things like your car loan, registration, fuel/electricity, insurance, and servicing into your lease payment means these costs are deducted from your salary before tax.
Fleetcare offers various innovative leasing solutions for all defence personnel, regardless of rank or role. From a family car to a beastly SUV for punishing off-road trails or winning competitions, we’ll design a solution that suits you and your budget. Plus, you’ll enjoy great fleet discounts and the convenience of a single monthly payment for all your car-related expenses.
A novated lease can also include your first year’s comprehensive car insurance. However, it’s important to note that not all comprehensive policies are the same and that you should always check the cover levels provided.
Minimum Term of 5 Years
Consider a novated lease if you’re an ADF member looking for a better way to pay for your car and associated costs. This salary packaging arrangement allows you to bundle your vehicle’s purchase price and running expenses into repayments from your pre-tax wages, reducing your taxable income.
A novated lease can save you GST on car-related expenses, including registration, insurance and replacement tyres. It can also help you pay for a more desirable car by allowing you to include the cost of extras like a bullbar, tow rack and snorkel.
Fleetcare can design a novated lease for you and source the finance through a specialist lender. They can even deal with the lender on your behalf, helping you with the application and completing the documentation. For more information about the defence novated lease minimum term, click here.