How do these benefits work in practice?
Let's take the example of an employee buying a Tesla Model 3 RWD with a purchase price of $66,100 and a finance term of five years. In this example, servicing, insurance, tyres and registration costs during the term are included.
Thanks to the GST and income tax savings with a novated lease (plus the FBT exemption), the difference compared to buying the exact same vehicle with a car loan, or even paying for it outright with cash, are enormous.
The example is based on an individual with an annual salary of $120,000 with car running costs based on 15,000kms driven annually. The car loan interest rate used in the comparison is 7.5% p.a.
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