Ed Stanistreet talks taxes, car leasing and how you can save Tax time is here. And with the start of a new financial year, now’s the perfect time to take out a novated lease on a new or used car through Toyota Fleet Management (TFM). Ed Stanistreet, General Manager at TFM, tells us why.
“Given that you’re going to be doing your tax return, now’s the time to think about the car you drive and how you can reduce your taxable income for the new financial year. Jump into a new car on a novated lease in July to make the most of a full tax year.”
Reducing your taxable income sounds great. But how exactly does having a novated lease make it happen? Let’s first take a look at what a novated lease is, then we can delve into its potential tax benefits.
Novated leasing is the hassle-free way to get into the car you want and potentially save on income tax at the same time. Simply put, it’s a way of paying for a new or used car using pre-tax salary.
A financial arrangement is made with your employer where they pay your lease payments on your behalf from both your pre-and post-tax salary. Your repayments include all your car’s running costs, servicing and even your rego and CTP.
And taking out a novated lease through Toyota Fleet Management is a good way to do it.
"If you secure a novated lease through Toyota Fleet Management, you can utilise our buying power and get a much bigger discount on the car, rather than just walking into a dealership”, explains Ed.
With a novated lease, your lease payments, running costs and Fringe Benefits Tax (FBT) are deducted from both your pre and post-tax income, effectively saving you the pre-tax deducted portion of your salary from income tax. And because you don’t pay GST on the vehicle, you can also save on the car’s purchase price and running costs.
By taking out a novated lease now, at the start of a new financial year, you’ll be maximising the amount of salary you could potentially save from income tax.
“The number one benefit is that it can be so tax effective – you’re paying a portion of your car and its running costs using pre-tax dollars,” Ed summarises.
The savings you can enjoy through a novated lease will depend on a few factors. Ed has a great solution to working everything out.
“Toyota Fleet Management offers an online novated lease calculator that allows you to punch in your salary, your desired car and your lease term, before calculating what your lease payment could be, and how much money you'd save.”
As you can see, a novated lease can offer advantages all round. It can be both cost and tax effective, meaning more cash in your hand. Plus, you’ll benefit from the convenience and flexibility this type of lease offers.
If you’re interested in taking out a novated lease through Toyota Fleet Management, fill out a simple enquiry form here.
To work out your savings and see what’s within your budget, give the novated lease calculator a go.
For current offers available on a Novated Lease, Click here
Interested in a Novated Lease? Enquire Now
Want to try out our Novated Lease Calculator? Click Here
The information provided by Toyota Fleet Management (TFM), a division of Toyota Finance Australia Limited ABN 48 002 435 181, Australian Credit Licence No 392536, in this article is of a general nature and for your information only. Nothing in this article constitutes or should be considered to constitute legal, taxation or financial advice. Before making a decision about any of TFM’s products and services, TFM recommends that you seek independent professional advice about that product or service, such as from your accountant, taxation or financial adviser or lawyer, who can advise you about your personal circumstances and what would be suitable for you.
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