A Novated Lease can be a great way for a company to offer employees a vehicle as part of their salary package; paid for out of pre-tax dollars. Unlike a Chattel Mortgage or Hire Purchase agreement, there are 3 parties to a Novated Lease agreement, the Employee, the Employer and the Finance Company. While the employee continues to work for the employer, the employer is responsible for the car payments. In the event of the employee leaving the company, responsibility for the lease on the vehicle will fall to the employee. Some of the specific benefits to each party include: Employee · Employee may choose the make and model of the car · It is not always a company car, you may use it for 100% private use · Option to own the vehicle at the end of the term Employer · If registered for GST, may claim an input tax credit on each payment · Once employed is terminated, the employer is not responsible for disposing of the vehicle · Ability to offer potential employees an attractive salary package As with all finance arranged, we are conscious of the rate used, and always the most competitive rates in the market.
Novated Lease
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Asset Lease Australia specialising in Commercial Finance.