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Salary Packaging

How do I claim?

Three ways to claim your salary packaging benefits

1. Set up automatic payments where possible

The easiest way to claim benefits is to set up automatic payments for items such as mortgage, rent or credit card payments. This allows us to take care of it all for you. And you avoid any extra paperwork.

Once you've provided initial documentation to verify the expense (e.g. home loan records), your job is done.

2. A Salary Packaging Payment Card makes it easy

For living expenses, such as groceries and clothing, the Salary Packaging Payment Card is a convenient option.

You use it like a credit card - except the funds are drawn from your salary packaging account. Just swipe, sign and go.

3. How to claim online

If you don't have a Salary Packaging Payment Card - or if you've already paid for the item - you can claim online for salary packaging expenses.

RemServ's new online claiming tool provides a quick and secure way to submit your claims online, 24 hours a day, seven days a week.

Please remember to always keep your proof of purchase (typically a tax invoice or receipt).

To claim online:

  • Log in to your RemServ My Account
  • Click on the link for Online Claims
  • Follow the prompts and be guided through each step of your claim, with information tailored to your salary packaging arrangement

Once we have received your completed claim, including all required supporting documentation, you should receive funds into your nominated bank account within 3 - 5 business days. We will also send you a confirmation email on the same day.

4. Set up a direct payment

To set up a payment direct to a supplier, follow the steps below:

  • visit the forms section and download a claim form
  • complete the claim form and attach your proof of purchase
  • upload your documents using our form upload tool, email to remserv@remserv.com.au or mail to: RemServ, GPO Box 424, Brisbane QLD 4001

Once received, we'll process your claim within 2-5 business days and deposit the funds from your salary packaging account into your regular bank account.

We will also send you a confirmation email on the same day.

Ready to find out more?

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How will my HELP/HECS debt impact my salary packaging?

Salary packaging with a HELP/HECS debt

You can benefit from salary packaging even if you have a HELP (Higher Education Loan Program) or HECS (Higher Education Contribution Scheme) debt.

Understanding your 'adjusted taxable income'

Although salary packaging can reduce your taxable income (for the purpose of paying income tax), it can increase the gross value of your salary.

This is referred to as your 'adjusted taxable income'.

So your adjusted taxable income equals your salary plus the gross value of your fringe benefits.

How your adjusted taxable income impacts HELP and HECS repayments

The ATO assesses you on your 'adjusted taxable income' when working out how much you should pay in HELP or HECS repayments.

So with an increased gross salary, you may need to increase your regular HELP or HECS repayments.

Otherwise you may end up with a bill at tax time.

Before you start…

Before you start salary packaging, please tell your payroll department to take additional HELP or HECS repayments from your salary.

Please also seek financial advice if you're unsure.

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How will salary packaging affect my pay?

A simple explanation

This is what happens to your pay once you've set up a RemServ salary packaging account.

  • each pay cycle, your employer's payroll department deducts a nominated portion of your salary before tax is applied - and sends those funds to us
  • you can then use these funds to pay for your chosen benefits (e.g. Living expenses, Mortgage payments, Meal Entertainment etc.)
  • the rest of your salary gets taxed. However, because some of your salary has been taken out (to pay for your chosen expenses), you are taxed on a lower amount
  • your post-tax salary is then deposited into your bank account as usual.

By getting taxed on a lower amount and effectively paying less tax, your disposable income is increased. This leaves you with more to spend at each pay cycle.

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Is it too good to be true?

Hundreds of thousands of Australians benefit from salary packaging every year

Salary packaging is an extremely popular way to get more out of your pay.

Many employers within the private and public sector offer salary packaging as an incentive to retain and reward their staff.

The types of benefits you can salary package, and how much, depends on what your employer offers, as well as, what the Australian Taxation Office (ATO) allows for your particular industry.

Rest assured our tax and compliance specialists keep up-to-date with ATO rulings and developments in Fringe Benefits Tax legislation to ensure we are across any changes to salary packaging which may affect you.

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Is salary packaging easy to manage?

We take care of the hassles. You enjoy the benefits.

After we set up your salary packaging arrangements, we also manage them for you. This means that we pay for your nominated expenses on your behalf - using your pre-tax dollars.

That's right. You don't even have to remember to pay your bills!

A simple process at every pay cycle

  • each pay cycle, your employer's payroll department deducts a nominated portion of your salary before tax is applied - and sends those funds to us
  • you can then use these funds to pay for your chosen benefits (e.g. living expenses, mortgage payments, Meal Entertainment etc.)
  • the rest of your salary gets taxed. However, because some of your salary has been taken out (to pay for your chosen expenses) you are taxed on a lower amount  
  • your post-tax salary is then deposited into your bank account - as usual.

View and adjust your account at any time

Although we pay for your expenses on your behalf, it's still important you know what's being paid and how much is in your account at any time.

Your Secure Online Account is accessible 24/7 and allows you to:

  • view your transactions
  • view your account balance.

Ready to find out more?

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What are cap limits?

Cap limits explained

If you work in the public health or charity industry, you can package certain items up to a set amount. This is referred to as your FBT exemption 'cap limit'.

The cap limit is the highest amount you can salary package within a Fringe Benefits Tax (FBT) year (1 April to 31 March) without incurring FBT.

If you salary package capped benefits over your cap limit, FBT will be applied to the expenses - and you could pay tax on the extra.

Also from 1 April 2017, if you work in the health or charity sector you will also have access to a combined annual cap limit of $2,650 ($5,000 ‘grossed-up’) which applies to both Meal Entertainment and Venue Hire benefits each Fringe Benefits Tax (FBT) year if this is offered under your employer's workplace benefits program. 

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What are the benefits of salary packaging?

Why so many people say 'yes' to salary packaging

Employers offer salary packaging to reward staff for their loyalty and hard work.

But not every employer offers this benefit. So if you're one of the lucky ones, take the time to understand the many advantages salary packaging has to offer.

Pay less tax

When you salary package, you pay for some expenses - such as mortgage,rent or work-related costs - with your pre-tax salary.

So you still pay for your usual expenses, but because you're using pre-tax dollars you are reducing your taxable income at the same time. And who wouldn't want to save on tax?

Enjoy more spending money

At each pay cycle you have more money to spend on the things you want.

You may spend it on some stylish new clothes, a well-deserved weekend away - or to simply get on top of your ongoing bills. The choice is yours.

Save on the cost of running your car

By salary packaging your car with a novated lease, you could reduce the cost of keeping your car on the road - and finally afford to drive the car want.

You pay for your lease and running costs (including fuel, tyres and roadside assistance) from a combination of your pre and post-tax salary.

With a novated lease you can package:

  • a new car
  • a used car
  • your existing vehicle.

If you are considering packaging a used car or your existing vehicle, some conditions may apply.

Ready to find out more?

 

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What does it cost?

A small fee for a potentially big saving

RemServ administers all your salary packaging arrangements. Fees for this service are paid to RemServ from your pre-tax salary and include GST. Fees vary depending on your employer and your chosen benefits package. You can find our fees in your employer’s Salary Packaging Information Booklet, available from My Hub.

Fees are paid out of your pre-tax dollars, and:

  • do not contribute towards any capping limit
  • do not attract FBT.

Want more information on fees?

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What if I don’t work full-time?

Good news for casual and part-time workers

Salary packaging is not only for full-time employees.

If you work casual or part-time hours, and your employer offers you salary packaging as part of your workplace benefits program, you can still reap the rewards of salary packaging, No matter how many hours you work or how much you earn, if you're paying income tax, you could save by salary packaging.

And depending on your employer, you can salary package as much or as little as you like.

Ready to find out more?

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What’s the difference between capped and uncapped benefits?

Benefits may be capped or uncapped

If you work in the public health or charity industry, you will notice that benefits may be capped or uncapped - depending on the expense type and sector you work in.

Capped benefits are those that can only be salary packaged up to a certain amount. This is referred to as the 'cap limit'.

The cap limit is the highest amount you can salary package without incurring Fringe Benefits Tax (FBT). If you salary package capped benefits over your cap limit, FBT will be applied to the expenses - and you could pay tax on the extra.

Uncapped benefits have no limit at all - and do not incur FBT.

What are the cap limits for my industry?

Health employees can salary package a range of benefits up to the FBT exemption cap of $9,010 each FBT year.

Charity employees can salary package a range of benefits up to the FBT exemption cap of $15,900 each FBT year.

Health and charity employees can also salary package Meal Entertainment and Venue Hire with a cap of $2,650 each FBT year.

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Novated Leasing

Can I choose the car?

Drive the car you want with a novated lease

Contrary to popular belief, you're not limited to any particular car type, model or make. In most cases, you are free to choose the car you wish to drive.

You're not restricted to just new cars with a novated lease

You can also choose to lease a used car or even your existing car.

Some conditions may apply.

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Can I just package my car’s running costs?

No, you cannot only package your running costs through a novated lease arrangement; finance repayments must be included.

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Can I start a novated lease at any time?

Yes, you can start at any time of the year. Some people wrongly believe that you have to wait until the beginning of the Fringe Benefits Tax (FBT) year in April to start a lease.

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Can I terminate my novated lease early?

When you enter into a novated lease, you agree to lease the vehicle for a fixed period of time. So it’s important you structure the lease over a period that reflects how long you wish to keep the vehicle for. If you decide to terminate your lease early, depending on the length of lease that has expired, the payout figure may be higher than the current market value of the vehicle, and typically include fees and charges imposed by the financier.

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Can I use my fuel card with any other car?

No, your fuel card can only be used for your leased vehicle. If you do accidently use the card with the wrong car, please let us know as soon as you can to avoid card cancellation or any other inconvenience.

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Can my estimate be adjusted?

Yes, you can adjust your estimate at any time prior to signing your final contract.

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Do I drive enough kilometres to have a novated lease?

You don't have to drive a lot to benefit from a novated lease

Whether you drive fewer than 10,000 or more than 50,000 kilometres a year, a novated lease is a great way to finance a car. And you could save on tax.

Changes to legislation mean that the amount of kilometres travelled is now less important for novated lease drivers.

An example: a novated lease on low kilometres

Kelly earns $55,000 a year (excluding her employer's super contributions) and is considering leasing a new car valued at $33,606 over four years.

She estimates she will travel 15,000 kilometres a year and intends on paying for her lease and running costs with a combination of pre-tax and post-tax dollars from her salary.

By choosing to salary package her car, Kelly could increase her disposable income by $226 a month - or $2,718 a year.

Ready to find out more?

 

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Do I earn enough to benefit from a novated lease?

You don't have to earn a high-income to benefit from a novated lease

Many people believe that only high salary earners benefit from a novated lease.

That's not true. Many employees can benefit from a novated lease.

For example, an employee with a salary of $55,000 could save $2,718 a year on a novated lease.

In fact, a novated lease can put you behind the wheel of a car you might not usually be able to afford - regardless of what you earn.

When we source a new car for you, you don't pay GST on the purchase price, which instantly increases your budget by 10%.

Ready to find out more?

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Does novated leasing impact any other salary packaging benefits I might have or be entitled to?

No, novated leasing is a benefit that can be taken out in addition to any existing salary packaging caps you have. That means, if you work for a health or charitable organisation (and dependent on your employer’s salary packaging policy) you could package up to $9,010 and $15,900 respectively on full FBT items, as well as $2,650 on meal entertainment or venue hire, in addition to a novated lease. 

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How do I get my car serviced?

Fully Maintained Novated Lease Servicing

Maintenance and servicing costs are budgeted for as part of a fully-maintained novated lease. In most cases, two services a year – based on time or mileage – are scheduled throughout the least term.

The process is simple. When you drop your car off, let the supplier know RemServ looks after your car and ask them to contact us on 1300 73 66 62 before they commence any work.

Our qualified and experienced team will ensure:

• work meets the car manufacturer’s standards
• work carried out is reasonable and consistent with the age and condition of your car
• work is covered by warranty is free, and
• labour and parts are supplied at competitive prices

Our Maintenance Authorisation Team will also organise payment directly from your RemServ account. To ensure there is enough funds in your account, we recommend you regularly check your balance via RemServ Online. Once the work is completed your mechanic will contact you to collect your car.

Please note: additional services carried out between scheduled services are not included in your budget. For maintenance work outside of your standard budget, please call us on 1300 73 66 62 to discuss.

For tyre replacements, you have access to our network of suppliers including:

• Beaurepaires
• Bridgestone
• Bob Jane T-Marts
• Goodyear
• JAX Tyres
• K-Mart Tyre & Auto
• TyrePower
• Or any supplier of your choice

RemServ have approved pricing agreements with each tyre supplier, however we don’t have access to store discounts or specials. If you want to find out more about RemServ pricing, then please contact our Maintenance Authorisation Team who can provide you with information and make sure you have access to these fleet prices.

If you want to take advantage of a store discount or special, you will need to pay for the tyres upfront and then make a claim.

Self-Managed Novated Lease

With a self-managed lease, you take full control of the day-to-day management of your lease – from organising your own finance, servicing and insurance, to setting your own budget to pay for the lease repayments and running costs (which you will need to pay and have reimbursed when sufficient funds are available in your account).

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How do I pay for my insurance?

RemServ-arranged insurance

If we have arranged your insurance for you, you don’t need to do anything when your renewal is due. If you are still satisfied with the policy, we will pay the premium from your novated lease account. If you have any questions, give us a call.

Private insurance

If you are using your own insurance provider, you can pay the account and claim reimbursement for this cost. Simply submit a claim form along with all the pages from your policy document and proof of payment. We’ll then reimburse you from your novated lease account.

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How do I pay for the car’s running costs?

Let RemServ manage your running costs for you

Once your car's on the road, we manage the running costs for you. No extra hassles for you to worry about.

A simple annual budget

We establish a simple annual budget to manage your on-road costs - including petrol, servicing and maintenance, registration and insurance.

So you keep on top of your running costs with easy fortnightly payments - rather than being hit with lump sums.

Fuels cards offer even less hassle

You will also receive a fuel card to use at your choice of BP, Shell or Caltex service stations. Now that's convenient.

Ready to find out more?

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How does novated leasing compare to a car loan?

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 car.

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 $42,286.

Meanwhile....

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 $39,300.

As a result of novating leasing, Kate is $2,986 better off than Ann.

* Includes PAYG, and Medicare (where applicable)

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How does the residual payment work?

It’s legislated that all novated leases require a residual – or “balloon” – amount to be paid the end of the finance agreement. The residual percentage applicable is determined by taxation rules, and is applied to the amount that you finance. How much the residual payment comes to depends on the lease duration and estimated value of the car at lease end. Please get in touch and we can advise of the residual amount applicable to you.

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How long is the lease term?

A novated lease can be taken out over any period from one to five years. 

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I prefer vehicle ownership over leasing – why should I lease?

A novated lease allows you to use pre-tax dollars to pay for your car’s repayments and many of the running costs that you’d ordinarily have anyway – including big-ticket items such as registration, insurance and servicing – which could lower your taxable income while providing you with the peace of mind of having everything pre-budgeted for.

Plus, at the end of the lease, you have the option of upgrading to a new car while continuing to enjoy the convenience and tax benefits of salary packaging a car.

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What happens at the end of the lease?

We'll talk you through your options

A novated lease agreement generally lasts one to five years. We will contact you before your novated lease expires to talk you through your end-of-lease options.

At the end of your lease, you may be able to:

  • keep the car: you pay the remaining amount owing on the car
  • refinance the car
  • upgrade to a new car: you will be required to trade in your current vehicle and pay any remaining amount owing
  • sell the car: you will need to pay off the remaining amount owing.

If you are considering keeping or refinancing your vehicle, some conditions may apply.

For more information:

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What happens if I change jobs during the lease term?

If you have a novated lease, it is ok to change jobs during your lease term

If this occurs, you may have a number of options available to you such as:

  • pay the amount owing and buy the vehicle outright
  • continue paying the lease and running costs yourself
  • transfer the lease to your new employer (subject to your new employer's approval).

Ready to find out more?

 

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What happens if I go on unpaid leave during my lease term?

Simply login to your RemServ Online account and use the Contact Us section to let us know well before you start your unpaid leave. When you take unpaid leave, your employer will stop paying funds into your novated lease account. This means there may not be enough funds in your account to pay for your regular lease payments, running costs or FBT. We can discuss a range of options available to you to avoid any inconvenience or unexpected bills.

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What happens if my car breaks down?

RemServ offers 24/7 roadside assistance to almost anywhere in Australia for as little as $6.50 per month (GST inclusive, the cost of which is deducted from your salary packaging account balance. In the event of a breakdown call 1300 73 66 62 and ask to be put through to our Roadside Assistance team, who can give advice over the phone and coordinate a range of services to get you back on the road. If you need roadside assistance after hours, you can still call 1300 73 66 62 and follow the prompts to be transferred through to our 24/7 service.

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What if I spend more or less than I budgeted?

If you have spent MORE than budgeted …

We will contact you to discuss increasing your regular payments to ensure you can cover the higher amount.

Please also check your online statements regularly and contact us if you notice your budget is being overspent. Then we can adjust your deductions even sooner.

If you have spent LESS than you budgeted …

At the end of your lease term we will reconcile your account within 60 days.

If there is money in your account, we will send the funds to your employer. Your employer will then deduct income tax and pass the remaining balance back to you.

Want to find out more?

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What information do I need before I call to enquire about novated leasing?

It depends on how much information you require on your initial phone call, but it might be a good idea to have at your disposal:


• the make and model of your current car (if you have one);
• an idea of the make and model of the car you want;
• approximation of your current car’s running costs;
• how many kilometres you think you’ll travel each year;
• your employer and annual income.

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What is Fringe Benefits Tax (FBT)?

FBT explained

A tax on certain employee benefits

Fringe Benefits Tax (FBT) is a tax which is applied to benefits you receive from your employer that are not in the form of cash salary or wages.

For example, a novated lease is a benefit outside your cash salary or wages - so it is subject to FBT.

The current FBT rate is 47%. 

FBT and novated leases

For a novated lease, the amount of FBT payable depends on the cost of the car.

Even with FBT on a novated lease, you will often pay less tax overall.

We will work with you during the set up and throughout the term of your lease to help you meet your post-tax requirements and minimise the chance of you having an FBT liability.

Want to find out more?

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What is not included in a novated lease?

A novated lease does not include road tolls, traffic infringements or accessories fitted to the car after purchase.

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What is the approval process for a novated lease?

RemServ offers fast and easy approval

At RemServ, getting approval for your novated lease is fast and easy.

In fact, our customers tell us that the application form is quicker to complete than most other finance application forms.

Wherever possible, we approve applications within two hours of receiving your request.

Ready to find out more?

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What types of car insurance can RemServ arrange, and what do they cover?

With a fully-maintained lease, RemServ can help to arrange your insurance at competitive rates, including comprehensive, third party car insurance, warranty, Total Loss Assist and lease protection. Alternatively, you can choose your own provider.
Total Loss Assist and Lease Protection are important insurances to consider when you are under a novated lease arrangement.

Total Loss Assist cover

In the event that your car is stolen or written off due to an accident or natural causes (flood, hail etc.), Gap Insurance covers the shortfall between the write-off amount and the lease payout. The premium can be spread over the term of the lease and added to the amount financed.

Lease Protection

In the event of accidental death or involuntary unemployment, Lease Protection covers the difference between any shortfall on the sale price of the car and any remaining balance due on the lease. Furthermore, if you are made redundant, the insurer will pay your lease repayments and running costs for up to six months – and if you cannot find new work after the sixth month, we’ll help you sell the car and the insurance will cover the shortfall on the payout amount. The premium can be spread over the term of the lease and added to the amount financed.

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When I get my estimate/proposal, what are the next steps?
  •  Review the numbers to ensure you fully understand them and are happy with them (if not, get in touch);
  •  Confirm you are ready for your RemServ Novated Lease Offer to be sent out;
  •  Review your Offer once received, and, if happy, sign and return to us;
  •  Receive, review and sign your Lease Documentation to enable delivery or pickup of your car;
  •  Enjoy your new car!
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Where can I go to access all my account details?

You can access all your salary packaging information 24/7 via the RemServ App and RemServ Online, your secure customer portal.

Once logged in, you can check your transactions, change your details and make a claim when and where you want. It’s the convenient way for you to manage your salary packaging account. If you haven’t already registered, go to secureRemServ.com.au, click on the Register button and follow the prompts. If you’ve registered but can’t remember your password, just click on the “Forgot your password?” button to arrange for your password to be sent to you.

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Why should I choose a novated lease?

Choosing a novated lease is a great way to be able to drive the car you want and get all the benefits.

A better deal on the cost of your car

We purchase a large number of vehicles from dealerships across the country. Our nation-wide buying power means we get competitive prices on new cars.

Tax savings

When you finance a new car through a novated lease, you don't pay GST on the purchase price. So you save 10% instantly.Plus, when you lease a car, the repayments are made with your salary before it's taxed - reducing the amount of tax you pay later.

Convenience

We manage the administration of your novated lease, including sourcing, financing and maintaining the car. No extra hassle for you.

Budget maintenance

Your running costs are broken down into manageable monthly payments, rather than large lump sums - including big expenses like registration and insurance. This means you won't have to pay for these costs in one hit. We can also help you save on your overall running costs, such as fuel, insurance and maintenance.

Your choice of vehicle

You can choose which car you want to drive - whether it's a new, a used car, or your existing car.

Ready to find out more?

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Get in touch

Get a quote now

Call 1300 73 66 62

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