Novated Lease Quote

What is a Novated Lease?

Novated Lease Tax Information

Salary Packaging a Motor Vehicle with a Novated Lease

What is a Novated Lease?

A Novated lease is an arrangement between you (the Employee), your Employer and the finance provider where you can use your pre-tax income to obtain a vehicle of your choice

How a Novated Lease Works

1. You select a vehicle of your liking, contact Remunerator and we arrange a Lease for you that suits your individual requirements.
2. You, your Employer and the finance provider sign a Deed of Novation and you take delivery of your new vehicle.
3. Your Employer pays the lease rentals to Remunerator (including the vehicle operating costs) on your behalf as part of your Salary arrangements.
4. If you leave the company before the novated lease expires, the Deed of Novation terminates. Your Employer's responsibility to pay the lease rentals and vehicle operating costs ceases and you become personally responsible for these payments.
5. During the term of your novated lease, your Employer is responsible for the payment of Fringe Benefits Tax (FBT), which is payable to the Government to offset their loss of tax revenue from your salary. The estimated effect of FBT is calculated by Remunerator and is included in the Lease calculations to you.

Benefits of a Novated Lease

CHOICE

• You choose the vehicle make and model that best suits your requirements. This can be a family sedan, a recreational vehicle, a sports car, a second vehicle to get you to and from work, etc.
• You choose how long you want to keep the vehicle for and the number of kilometres you think you'll travel. Based on this, we'll prepare a budget for the vehicle.
• You have the choice of the type of novated lease that would best suit you. This can be either a Finance or Operating Lease and is further explained in the Lease Options section below.

CONTROL

• All of your Vehicle Operating Costs are included in the Novated Lease.
• We set your Budget after consultation with you.
• You control your Vehicle Expenses with our assistance.
• If you choose a Finance Lease, you control the sale of the vehicle at the end of the novated lease and any profit you make after paying out the residual value is yours to keep, free from tax.

SAVINGS

• Pre-tax salary deductions reduces your Income Tax
• We pass on to you the savings we obtain from our buying power for vehicles, fuel and other operating costs
• All of your Operating Costs are charged to your account exclusive of GST
• The novated lease is calculated on the GST exclusive price of the vehicle
• We offer a 'One Stop Shop' facility to take care of all of the vehicle and lease negotiations, which saves you money, time and convenience

FLEXIBILITY

• If your personal circumstances change, we can amend your Novated Lease structure to best suit you
• Through a Finance Lease, should there be significant changes to the cost of your operating costs, eg Fuel, we can amend your Novated Lease to ensure you are not disadvantaged

SERVICE

• We treat you like you're our only customer.
• Fully trained, experienced, professional consultants guide you through the Lease set up process
• Experienced, professional maintenance controllers ensure you are not overcharged for maintenance at the time of servicing.
• A Remunerator Novated Lease package can provide you with an after tax benefit. The amount of this benefit is largely determined by your personal financial circumstances and vehicle usage. We recommend you seek independent professional advice regarding the effectiveness of salary packaging for you.

What is included in my Novated Lease?

The Remunerator Novated Lease enables you to salary package motor vehicle costs into a single monthly payment.

Vehicle Selection and Sourcing

We can assist you with sourcing the vehicle of your choice and through our Motorsearch department.

Remunerator consultants and Motorsearch can provide advice on:

• Pricing
• Vehicle options
• Availability
• Projected future vehicle values
• Vehicle running costs
• Trade ins and vehicle disposal

Our buying power allows us to obtain significant discounts from retail prices and ensure vehicle availability in most circumstances. Any vehicle that has been selected through our dealer network will be delivered on time, with a full tank of fuel and will be the most current vehicle model available.

You still have the option of choosing your own dealer, if that is your preference. Understandably though, we can make no guarantees on the quality and age of the vehicle or whether it will be delivered on time with a full tank of fuel. These negotiations and arrangements would be your responsibility.

What vehicle can I choose for my Novated Lease?

You can choose the vehicle (make, model and year) to be leased, including:

• New vehicles
• Second hand / used vehicles (from a dealer, auction or privately)
• Your current vehicle, financed at the current wholesale value
• Personalised vehicles with the types of additions you desire.

There are no limits on the purchase price* (subject to your Employer policy), provided you can meet the financial commitments of the lease and associated running costs.

* Some employers do not allow vehicles over the luxury car limit of $57,180 + government charges to be packaged, and if your employer does allow this the lease will be subject to luxury car penalties.

The only restrictions in vehicle choice are:

• Vehicles in excess of one tonne carrying capacity, such vehicles fall outside the definition of "car" for FBT purposes. You should check with your Employer to determine whether they will permit you to package these vehicles.
• Vehicles without an Australian Compliance Plate
• Motorcycles - they fall outside the definition of "car" and are excluded.
• Vehicles that will be older than 10 years at the end of your novated lease.

What are the Finance Lease Residual Values?

There are specific guidelines for Residual Values on Finance Lease set through legislation. We recommend that you select the lowest allowable residual value to minimise the possibility that the value of your vehicle at the end of the novated lease is less than the residual amount.

How long can a Novated Lease go for?

Standard novated lease terms are between 12 and 60 months, however in certain circumstances, novated lease terms can vary from the standard. At the end of the novated lease term, options are available to extend the lease for periods of 12 months to 24 months.