A novated lease put simply, is a finance contract. It’s a type of finance that Billiecart will set up for you to pay for your new car. The lease is set up in your name, but your employer is also part of the agreement whilst you are employed with them. Having your employer included allows for some of the novated lease costs to be taken from your pre-tax pay and this is where the benefits kick in.
A Billiecart novated lease includes all the budgets you need to keep your car on the road. This is fuel, servicing, insurance, rego, car wash, road side assistance and the list continues. The cool part about this is we manage all of these payments for you.
Most of us are not able to claim a tax concession on the car that we drive because dropping the kids at basketball training or slipping through that drive through for a quick burger isn’t quite considered business use. A novated lease allows you an income tax benefit regardless of how or where you drive your car.
And that’s the first benefit. A reduction in your income tax. Because some of your salary is taken from your pre-tax salary in order to pay for the novated lease, you therefore reduce the amount of tax you have to pay each pay. Bonus!
And as if that’s not enough you save on GST. There are GST savings on the purchase price of the car and also your regular running costs. Amazing!
With these two benefits you can end up saving thousands per year.
If you are looking to buy a car or have a car you already own, please reach out to us. We can run the numbers, talk you through what it’s all about and show you how you can benefit.