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Making leasepayments before tax is deducted reduces your obligations by $3300 per annum or $16,500 over a five-year lease period. While five years is the period chosen in this example, generally novated lease providers let you opt for periods between one and five years. . So, should you consider a novated lease?
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. For most people, being able to choose a new car at the end of the lease term is one of the most appealing aspects of a novated lease.
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. An easy-to-use app can make all the difference in managing your lease.
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