Why your Novated Lease contribution amounts could change over time
If we asked you to tell us exactly how much you will spend on fuel over the next year, do you think you could?
This is the challenge faced by RemServ when we are setting up a new novated lease. The best way to approach this of course is for us to work with you and estimate how much you will spend on fuel for the coming year.
This annual amount is then divided over your available pays so we can work out the correct regular contribution, whether that be weekly, fortnightly or monthly.
Sometimes things change and if you end up driving more than we estimated, you will use more fuel and the estimated budget we set up may no longer be correct. It’s the same if you don’t drive as much and we collect a bit more money than needed — your budget may need to be reduced.
In either case, RemServ will contact you to discuss the change and put a new budget in place.
Novated lease account health is important
Each pay, the whole novated lease amount is added to your RemServ account — think of it like a bank account for your lease.
RemServ then pays your regular lease payments from this amount, reimburse you from this amount when you claim and pay those annual costs — like registration — from here when required.
If you are consistently overspending on fuel, this will reduce the total remaining amount available in your novated lease account for your other budgeted items like rego, insurance and maintenance. This is because they all come from the one balance.
So, we need to constantly monitor your novated lease budgeting and the contributions to your novated lease account and make sure we top up where necessary — or reduce if required.
Now you know why your novated lease amount contribution can sometimes change and that it’s a perfectly normal part of novated leasing with RemServ.
Disclaimer: This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.