Motor Vehicles - Novated Leases
1. How does a Novated Lease work?
Click here to view our short video explaining how a novated lease works.
2. Why is my Employee Package Authorisation / Confirmation Report different to my Novated Lease quote?
Generally, your quotation will be based on a full year of salary packaging therefore spread over 12 months. Depending on when your package starts this may not be the case and your package will be based on the months remaining in the FBT year.
For example, if you package commences in November, your deductions and payments will be established over the 5 remaining months to the end of March.
3. Do I have to travel the exact kms that I nominate in my novated lease?
FBT is based upon the value of the car (if it is new it will be the purchase price less stamp duty and registration). The distance you travel will not affect the FBT payable.
Your Petrol budget set in your salary package will be based upon your estimated distance that your travel in the year. Should you expect to travel more, there is a risk you will exhaust your Petrol allowance, so you should contact us to amend your salary package if this occurs.
Don’t worry if you are travelling less than estimated, at the end of the FBT year you can either claim or rollover any unused Petrol allowance.
4. Can I terminate my salary package prior to the end of my lease?
If any of your circumstances change it is important to notify Remunerator as soon as possible.
We will work with you to provide a suitable outcome including how to make payments for your lease direct to your Financier.
5. How does 'days not available' affect my target kms?
If you are using the Employee Contribution method to offset any FBT that would be otherwise payable, there is no impact should your car be deemed to be unavailable at any point during the year. Find out more information here.
6. Can I package more than one vehicle?
Yes. Your ability to package will be based on affordability. It is between you and Remunerator to determine your most appropriate salary package and your employer does not take any responsibility for the suitability for any package structure.
7. What do I do if I've lost my fuel card?
You will need to advise Remunerator straight away and they will cancel the Card and order a replacement one.
Whilst waiting for a replacement card you will need to pay for your fuel yourself and claim this as a reimbursement (please ensure you keep the receipts).
8. How do I know how much to budget for petrol and maintenance on each car?
The FBT payable is simply calculated based on the number of days remaining the FBT year. An FBT year runs from the 1st of April until the 31st of March. As your lease will most likely NOT start at the beginning of the FBT year, your post tax deduction will most likely be higher due to recovering the FBT allowance over the available pay cycles. Find out more information here.