It is great in attracting new employees or retaining existing ones. When offered as a part of their employment, it can help to attract potential employees who are then inclined to stay with the company for the long-term.
The employer may then be able to lower their payroll tax and also not have company vehicles on their balance sheet.
This is all well and good, but what about the benefits of a novated lease for the employee? Benefits include:
Expenses relating to the maintenance of the vehicle during the term may be tax deductible.
Where GST is included in the lease, GST credits are claimable (GST is credited back).
The deduction for the vehicle is made before pre and post tax, reducing PAYG payable.
Forget about GST being added to the purchase price as this is dealt with by the employer and therefore the financed amount is excluding GST.
The vehicle may come in at a much lower price due to the employer making use of corporate discounts and the financer fleet discounts.
The employee is not tied into buying a new car; they can choose any car up to 10 years old at the end of any novated lease.
As can be seen, there are many advantages to novated leasing. For employers, they are able to offer a great incentive to attract and retain your employees. Novated Leasing enables them to enjoy the many benefits of a car of their choice for their personal use, knowing that their employer and the finance company are taking care of the payments.Find Out More
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