Novated Leasing for Department of Communities Employees

See how much we can save Dept of Communities employees on vehicle costs with a novated lease.

We can help Dept of Communities employees get the best deal on a novated lease, even if your department has an existing salary packaging provider.

Benefits of a novated lease for Dept 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 $6,191) 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.
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What are the savings on a novated lease for Dept 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 Dept 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.

Electric vehicle novated lease fringe benefits tax saving example compared to car loan and buying car outright
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No 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.

How we can help Department of Communities employees

Novated Lease Australia regularly helps government employees get a great deal on a novated lease. This can still be possible in some cases even if your employer (e.g. a state government Department of Communities) has an existing salary packaging provider.

If that's the case, many employees still come to us for help with a self-managed lease because they are not happy with the terms of the novated lease deal on offer (e.g. finance costs).

In some cases we are able to secure better novated lease deals than the department's main salary sacrifice provider can, while minimising the management fees in the process.

people

"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

We can help you find a vehicle to buy and use our fleet purchasing power to secure a discount on the regular price.

  • We'll shop around and find you a competitive novated lease deal from our selection of finance providers.
  • We help you calculate your car-running costs based on your estimated usage and factor them into your lease budget.
  • We look after all of the admin and work with your employer's payroll department and the salary sacrificing provider to optimise your lease for maximum tax savings.
  • When the lease comes to an end, we will guide you through your options and help you with the next steps.
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Written by

Bevan Guest - NLA CEO

CEO

Bevan Guest

Reviewed by

Sean Callery Editor Novated Lease Australia

Editor

Sean Callery

NovatedLeaseAustralia.com.au
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ABN: 69 659 639 004

ACN: 659 639 004

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