Novated Lease
A Novated Lease is a three-way arrangement between you (the employee), the lessor (the Financier) and your employer, whereby a vehicle is leased from the financier under a finance lease in your name and assigned to your employer by way of a novation agreement (Deed of Novation). The employer recovers this amount from the employee's salary package. The lease, the Fringe Benefits Tax (FBT) and the operating costs associated with running the vehicle are deducted from your gross salary, thus reducing the income tax you are obliged to pay.
Under this arrangement, the employer does not have responsibility for the residual value, which remains with the employee.
The total expense, other than the monthly lease includes fuel, tyres, scheduled servicing and maintenance, comprehensive insurance, registration, roadside assistance and Fringe Benefits Tax (FBT). In most cases it will be tax effective to have a motor vehicle as part of a remuneration package, due to the concessional taxation treatment of motor vehicles under the current fringe benefits tax legislation. Vehicle Acquisition We source vehicles at lowest possible purchase prices, subject to relevant fleet arrangements and any discounts / bonuses available.
Vehicle AcquisitionWe source vehicles at lowest possible purchase prices, subject to relevant fleet arrangements and any discounts / bonuses available.
Vehicle DeliveryThe delivery time and place for your vehicle is co-ordinated between the supplying dealer and yourself and delivery is made with a full tank of fuel (excludes auxiliary tanks).
Lease FinanceLease Express provide finance for:
After delivery of your vehicle you will receive your fuel cards. The cards offer many advantages including:
With each fuel transaction you are required to provide an odometer reading. This will enable us to report a comparison between the initial estimate and your actual kilometres travelled.
Servicing & MaintenanceMaintenance Controllers authorise and control all servicing, maintenance and warranty issues. Servicing is based on manufacturers' maintenance schedules and specifications on all types of vehicles, Australia wide. The invoiced amount is charged to your card and will appear on your monthly Activity Statement.
Pre authorisation enables:
Lease Express can arrange comprehensive insurance for your vehicle lease.
Registration & re-registrationRegistration and re-registration is included in your budget.
Budget VariationsYour package provides a budget estimate for the total costs associated with running your vehicle for the kilometres you have nominated. If the kilometres travelled vary significantly, we can vary the agreement to meet the changed circumstances.
Caltex Roadside AssistanceProvides roadside assistance and accident support with 24 / 7 coverage.
Redundancy InsuranceInvoluntary Loss of Employment cover is available. *(Conditions apply)
Please contact Lease Express for further details.
Fringe Benefits Tax Monthly LiabilityThe estimated monthly Fringe Benefits Tax (FBT) liability can be provided by one of the following methods:
Where the Operating Cost Method is used, the employee is required to keep a Log Book for 13 weeks to substantiate the percentage of business use.
Employee Reporting - Monthly Activity StatementYou are provided with a Monthly Activity Statement Online
Employer Reporting - Quarterly Travel SummaryEmployers receive a quarterly report for FBT purposes.
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