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

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

Show Assumptions

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.



© 2005 - 2010 Remuneration Services (Qld) Pty Limited l ABN: 46 093 173 089 Auth. Rep No. 293159 of
McMillan Shakespeare Limited (AFSL No. 299054), Australian Reliance Pty Ltd (AFSL No. 227041),
Swann Insurance (Aust) Pty Ltd (AFSL No. 238292) and The Hollard Insurance Company (AFSL No. 241436)