Novated Leasing isn’t just for employees of big business or Government as most people think. Any employee can benefit with a Novated Lease and there are huge savings to be gained from taking advantage of the tax benefits that this product offers.
Never Pay Full Price For Fuel Again
Sounds mysterious doesn’t it…. The secret to never paying full price for fuel again! Not to drag it out.. its not watching the news or listening to your favorite radio station waiting to hear who has the latest fuel price drop going on.
It is way easier than that! When you have your motor vehicle under a Fully Maintained Novated Lease you never pay full price for fuel. That’s week in week out.
This is just one saving advantage you gain via leasing your motor vehicle. Just so happens to be a huge saving. Depending on how much fuel you go through per week or year it could amount to 100s of dollars especially for people that travel long distances.
Note: With a Fully Maintained Novated Lease all your car running costs are deducted pre- tax. This is the first part you need to understand.
Working on the price you last paid for unleaded petrol, average figure of $1.65 per litre, under a Novated lease you would pay approx .97 cents a litre. When was the last time you paid that price?
Do math and never pay full price for fuel again
The only way to fully grasp how this works is to do it for yourself following our example:
First you need to find your tax rate. You can look up the current years tax rate at taxcalc.com.au
Looking at the income range of $37,000 to $90,000 per year the tax rate including the medicare levy is 34.5%.
Write down $1.65 minus the tax deduction of 34.5% brings the cost per litre back to $1.08.
Next you need to minus the GST credit component.
$1.08 – %10 = 0.97
Depending on your yearly income and tax bracket you will have a variance on the amount you pay per litre for fuel.
There is no denying the savings you do gain via leasing your motor vehicle rather than buying them outright. You can also place your partners car under a Novated Lease doubling up the savings on the household budget.
Call us today for a free quote! Happy Motoring… NCLO Team.
Novated Car Leasing Options does not purport to offer legal, financial or taxation advice. Employers and employees should seek independent advice as to the implications of a Novated Lease transaction. The salary packaging amounts and take-home pay calculations set out are estimates only. While due care is exercised by us to ensure the integrity of the estimates it does not make any warranties, express or implied as to its accuracy or completeness. Powered by Paywise. Trademarks and Brands are the property of their respective owners.