What are the Major Benefits of Salary Packaging?
Income Tax Savings - Each pay period a substantial portion of the car expenses are taken from your pre-tax income, reducing your taxable income and the amount of income tax you need to pay.
GST Savings - Your employer is able to claim input tax credit for the GST on your lease payments. The financier is able to claim back the GST on the purchase price of the vehicle, therefore you will finance the vehicle GST exclusive.
Fixed Costs - The salary package is fixed for the duration of the lease, allowing you to avoid nasty large annualised car costs. By fixing the costs the program helps you budget your outgoing.
Convenience - Fuel, Routine Service & Maintenance and Tyres - Budgets for fuel, routine service & maintenance and tyre costs are covered through your lease. You will be provided with a fuel card to purchase fuel only. When your vehicle is due for a service, book your vehicle in with the dealer and advise the dealer your vehicle is under a Novated Lease - they will then contact us to authorise jobs required. Payment for services are made out of the budget by us. You can have complete flexibility over the supplier of this service.
Registration - Registration costs are covered under the lease. You can choose to have your annual registration renewed automatically.
Comprehensive Insurance - Comprehensive Insurance budgets can be covered through the lease.
Clarity - Both the employee and the employer have 24/7 access to an online system to check their budgets and receive reports detailing all tax benefits and calculations.