A novated car lease is an arrangement in which an employer provides the use of a vehicle to the employee by salary packaging. Employees keep using the vehicle and employers bear all the expenses of the vehicle. In return, they deduct a part of the salary of the employee. Most people think that is why it is important. So, it is good for the following reasons –
- Pay no GST on the purchase price of your vehicle – saving you 10% on the price of your car.
- Save on tax. Your car repayments and running costs are paid mostly with pre-tax dollars so you enjoy a lower tax rate.
- You can save a lot of taxes on your fuel expenses.
Therefore, it is good to get a novated car leasing because of the above-mentioned novated lease benefits.