Exploring the Benefits of This Tax-Effective Financing Option
If you’re in the market for a new vehicle, you may be overwhelmed by the financing options available. From traditional loans to leasing agreements, it can be difficult to determine the best path forward for your financial situation. Amidst these, a novated lease stands out as a tax-effective option that is worth considering.
Here’s what you need to know about this tax-effective form of vehicle financing.
What is a Novated Lease?
A novated lease is a tri-party agreement involving you, your employer, and a finance company. In essence, you lease a vehicle for a defined period, and your employer agrees to make lease payments on your behalf. These lease payments are included in a payroll deduction that can result in significant tax savings. Additionally, you receive a fuel card as a convenient means of paying for the vehicle’s running costs, which are also included in your tax effective payroll deduction.
Is a novated lease worth it? Unpacking the Benefits
There are several benefits to choosing a novated lease over other forms of vehicle financing. Here are just a few:
You Save Money on Purchase: Using AANT Salary Packaging’s national fleet buying power, you can save thousands of dollars on your next vehicle purchase. Our car buying power allows us to secure a considerable discount on the vehicle purchase price. All discounts are passed on to you in full.
Income Tax Savings: By paying for your vehicle’s lease payments and running costs in a tax-effective manner can reduce your taxable income, resulting in income tax savings.
GST Savings: You save on GST included in the original purchase of the vehicle as well as the GST included in the pre-tax portion of the vehicle’s running costs.
No Business Use Required: Unlike other vehicle financing options, a novated lease doesn’t require the vehicle to be used for business purposes.
Flexible VISA Card for Running Costs: We offer a unique and flexible VISA card for your vehicle running costs, making it easy to pay for your vehicle’s fuel at any fuel provider that you choose, as long as they accept VISA.
Choosing a Novated Lease with AANT Salary Packaging
If you’re interested in taking advantage of the benefits of a novated lease, AANT Salary Packaging is here to help. We offer a range of novated lease options to suit your needs, and our team is always available to answer any questions you may have. With our national fleet buying power, flexible VISA card, and expert advice, you can save money on your next vehicle purchase and enjoy the convenience of a tax-effective financing option. Contact us today to learn more.