Novated Lease Car Finance Info

Novated finance Ready to get a novated lease? Find the car you want - Click here

Now a day there is a very popular method of getting the car financed among the corporate employees; and that is Novated finance. Actually Novated finance is a three way contract between employer, you and the finance company.

In such an arrangement, employer pays the monthly payments as per agreement on behalf of the employee and provides the employee the car apart from the remuneration package offered by the employer. In case of employee separation due to any reason or the agreement is squared up, the Novation ceases and then the residual finance becomes employee’s liability.
This sort of an arrangement has unique benefits for both employees as well as for the employers.

For Employees:
Choose the vehicle you want to possess as per your requirements.
You have 100% control on the vehicle.
The repayments are made out of your pre-tax income.
If you shift your job, you can even transfer your finance too.

For Employers:
There are no surplus vehicles even if employee leaves.
Employer can offer a more fascinating remuneration package.
In comparison with company owned cars, savings in both cost and time.
Carloan4u offers customized Novated finance schemes that will save your time and money.

Tax implications:
GST is deducted on a monthly basis as the employer is registered for GST, they can claim this back as an Input Credit.
GST is also charged on the residual finance value, and the employee is responsible for paying the GST at the end of the agreement.
Fringe Benefits Tax (FBT) is payable by the employee.

Ready to get a novated lease? Find the car you want - Click here