Novated Lease
Drive your money further!
Are you in the market to drive a new car? RemServ can help!
A novated lease is a three-way agreement between the employer, the financier, and the employee.
A car is leased from a financier in the employee's name and novated (transferred) to the employer by way of a Deed of Novation.
The employee can then salary package the lease and running costs of the car as a combination of their pre and post-tax salary using the Employee Contribution Method (ECM) during the term of the Deed of Novation.
Benefits of a Novated Lease
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Attractive and affordable means of driving a new car every few years;
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Greater purchasing power - access to RemServ iFleet complete vehicle purchasing service offering fleet discounts for the vehicle of your choice;
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Personalised service - an experienced iFleet consultant will guide you through the process;
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Expense management - we develop a comprehensive budget for you, including servicing, roadside assistance and maintenance;
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Convenience of a fuel card;
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Online access for convenience - access your statement online via our secure website.
View our example below to better appreciate how packaging could benefit you!
How does it work? Example
Ann earns an annual salary of $55,000 per annum (excluding her employer's super contributions) and is considering leasing a new $24,000 car over a term of 3 years. She has estimated that she will travel approximately 20,000 kilometres per annum and is intending to contribute to the lease from both her pre and post-tax salary.
By choosing to salary package a new car, rather than paying for it entirely from her post-tax salary. Ann could increase her net disposable salary by $1,813 per annum or $69 per fortnight.
EXAMPLE ONLY
| Item | Privately Financing a Vehicle | Novated Leasing a Vehicle |
| Ann's Annual Salary |
$55,000 |
$55,000 |
| Lease & Operating Costs (packaged pre-tax) |
$0 |
-$7,761 |
|
Fringe Benefits Tax |
$0 |
$0 |
| RemServ Administration Fee |
$0 |
-$285 |
| Ann's Taxable Salary |
$55,000 |
$46,954 |
| Less PAYG Tax (incl Medicare Levy) |
-$10,875 |
-$8,341 |
| Net Cash Salary |
$44,125 |
$38,613 |
| Less Post Tax Contribution |
$0 |
-$4,800 |
| Take Home Wages |
$44,125 |
$33,813 |
| Less Vehicle Running Costs |
-$12,125 |
$0 |
| Ann's Net Disposable Salary |
$32,000 |
$33,813 |
| ANN'S ESTIMATED ANNUAL BENEFIT |
N/A |
$1,813 |
| ANN'S ESTIMATED FORTNIGHTLY BENEFIT |
N/A |
$69 |
Do it Yourself or Fully Maintained
There are two options available to salary package a novated lease.
Please select for more detailed information.
Want to see how a novated Lease could benefit you?
Click on the below link to find out!
Click here to see the Novated Lease terms and conditions.