What is a Novated Lease?

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, along with other deductible vehicle running costs, on your behalf. These budgeted vehicle costs are bundled up or Salary Packaged, and included in a payroll deduction that can result in significant tax savings.

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, you 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 vehicles running costs.
No business use required
Unlike other vehicle financing options, a novated lease does not require the vehicle to be used for business purposes.
Flexible VISA card for fuel purchases
We offer a unique and flexible VISA card for your purchases, 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 local 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.