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Not only that, but novated leasepayments include running costs such as insurance, servicing, fuelling or charging, tyres, and registration. Novated leasing usually reduces your tax obligations, but it’s considered a fringe benefit. Weekly payment (incl. There are a few more things to know about novated leasing.
This means payments are bundled with running costs such as insurance, servicing, fuelling or charging, tyres, and registration. It also means the costs are part of your salary sacrificed payments, boosting the tax benefit. A single payment at predictable intervals, with no surprise rego or insurance bills.
That’s a novated lease, and it has become a popular choice for many Australians looking to drive their dream car. There are currently around 350,000 novated leases in Australia^. Between fuel, registration, insurance, servicing, tyres and other bills, keeping your car on the road can be a lot to manage separately.
It can be a flexible tax-effective option that allows you to salary sacrifice a car through your employer, with leasepayments deducted from your pre- and post-tax salary, which could reduce your taxable income and potentially save you money on tax.
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