We can help some Department of Communities employees get a great deal on a novated lease, even if your department has an existing salary packaging provider.
Benefits of a novated lease for Department of Communities employees
- Get your choice of new or used vehicle, 100% for personal use.
- A novated lease means saving GST (a discount of up to $6,334) on the vehicle purchase, including any accessories you add on.
- Save on tax by making part of your lease repayments with your salary before tax is deducted by your employer (salary sacrifice your car).
- Your lease repayments can also cover car running costs like insurance, rego, fuel/electricity, servicing, and tyres, saving you more in tax.
- Eligible ongoing car running costs will also be ex-GST.
- Pay $0 fringe benefits tax if you novate an eligible all-electric or plug-in electric vehicle.
- Decide from a range of options at the end of the lease term: own the car outright, sell it (any profit is yours tax-free), renew the lease, or upgrade the vehicle with a new lease.
What are the savings on a novated lease for Department of Communities employees?
The tax savings with a novated lease make a huge difference, whether you're senior in your department or at the early stage of your career.
Consider this hypothetical scenario where a Department of Communities employee buys a Tesla Model 3 RWD with a purchase price of $66,100 and finances it over a five-year term.
You can see the savings compared to financing the exact same vehicle with a car loan or even paying for it up-front with cash.
The example assumes a before-tax salary $120,000, a car loan interest rate of 7.5% p.a. and car running costs (insurance, registration, servicing and tyres) based on 15,000km driven per year. The car in the example is eligible for the FBT exemption.
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Get a great deal on a novated lease
Find a great dealNo FBT for EVs and PHEVs
An increasingly popular option for government employees we work with is to novate a zero or low emission vehicles. This is due to the generous fringe benefits tax (FBT) exemption that applies. It means there is $0 FBT to be paid by you or your employer which adds up to thousands of dollars in extra savings.
You can view a full list of the vehicles that are eligible for the FBT exemption to see what options are available.
"The other companies were quite satisfied in quoting excessive costs and simply failed to follow up in a prompt manner, if at all. NLA, Eddie and their support team have been excellent to deal with and all in all I have had a very easy and painless introduction to novate leasing. I have no hesitation in recommending NLA and Eddie." - Chris Kalmar
Here's what we can do for you
- Securing Finance and Sourcing Cars: Calculating the novated lease finance costs, shopping around for lease finance among multiple specialist lenders, and helping you find a car by leveraging our relationships with dealerships to negotiate the price.
- Initial Education: Explaining to you the benefits of a novated lease, helping you to maximise your tax benefits, including advising on FBT exemptions (e.g. for electric vehicles) and advising you on estimates only for your running costs.
- Set-Up Support: Guiding you from the initial quote through to settlement of your lease, as well as providing the final signed novation and lease agreements to you to provide to your salary packager.
- Handling Novation & Lease Agreements: Preparing the novated lease documentation for you and your employer's salary packaging provider to arrange signing. In most cases, though, you will need to source the Salary Packager’s agreements or documents directly from them to complete them yourself.
Other government departments we can help
Here are just some of the other government departments whose employees we can help with a novated lease:
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Written by
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CEO
Bevan Guest
Reviewed by
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Editor
Sean Callery
