Assumptions

1. The example is for illustrative purposes only and uses a combination of pre and post-tax contributions known as the Employee Contribution Method (ECM).  It is based on a 3 year lease term, travelling 20,000 kilometres per annum with a 45% residual value.
2. The base value of the vehicle for FBT purposes is $24,000.  The total amount financed is $23,273.89 including on-road costs.  The annual lease rental is $6,995.  The annual operating costs are $5,130, which includes fuel, maintenance, registration and comprehensive insurance.
3. The FBT is zero.
4. Client has sufficient private health cover to aviod Medicare Levy Surcharge.
5. Client does not have a HECS/HELP debt.
6. Calculations are based on the assumption that the budgeted annual kilometres will be achieved.
7. GST is payable on the residual value or lease payout figure upon lease finalisation or early termination.
8. These calculations do not take into account approximate annual Input Tax Credits of up to $1,058.
9. No other benefit items are salary packaged.
10. All amounts are rounded to the nearest dollar.
11. Calculations use PAYG rates applicable as at 1 July 2010.
12. Any potential increase in net disposable salary is based on the assumption that you would have otherwise paid for the vehicle from post-tax salary (as opposed to salary packaging the novated lease with a combination of your pre and post-tax salary). Such an increase will vary depending upon salary, employment circumstances, selected benefits and applicable tax treatment.
13. The calculations are for illustrative purposes only and are of a general nature.  The actual benefit per annum that could be achieved is dependant on applicable fees, your employer's Salary Packaging Policy, the amount salary packaged, your salary, and your personal financial circumstances.
14. The estimated monthly net benefit is the amount you will potentially save if you salary package your vehicle through our Novated Lease Program, as compared to not salary packaging your vehicle and paying vehicle runnning and lease costs from your post tax funds.  For the comparison to be accurate, we have assumed that the financial arrangement for both options are identical.