Ways you could save with a novated lease
If you choose to lease a car rather than take out a regular car
loan, there are a number of ways you could save.
Pay less tax
With a novated lease you could pay less tax because your car
payments come out of your salary before it's taxed. With a regular
car loan, you'll be making payments with your post-tax salary - and
missing out on possible tax savings.
Save on GST
When you source a new car through RemServ, you don't pay GST on
the purchase price. So you instantly save 10% on the cost of a new
Reduced running costs
With a novated lease, you could save on insurance, fuel and
maintenance. We have relationships with suppliers and insurers
nationwide, and can help you get competitive prices.
An example: novated lease vs car loan
Kate earns $70,000 a year and has a novated lease. She
salary packages $15,000 towards lease repayments and running costs
each year using a combination of pre and post tax funds, This
includes an administration fee of $257.40. Her taxable income
has been reduced to $55,000 - so she pays only $13,209* in tax each
year. Kate is left with a take-home salary of
Ann earns $70,000 a year and has a regular car loan. Her
total salary is taxed - so each year she pays $15,700* in
tax. Ann also spends $15,000 to keep her car on the
road. Ann is left with a take-home salary of
As a result of novating leasing, Kate is $2,986 better
off than Ann.
* Includes PAYG, Medicare and Flood Disaster Levy (where
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