Novated Leasing for Services Australia employees

How much you could save on personal vehicle costs with a novated lease?

We can help Services Australia employees get a great deal on a novated lease, even if your department has an existing salary packaging provider.

Advantages of novated leasing for Services Australia employees?

  • The vehicle you buy can be used exclusively for personal use.
  • Enjoy a GST discount of up to $6,191 on the vehicle's purchase price.
  • Make at least part of the lease repayments from your pre-tax salary (salary sacrifice your car)
  • Drive your choice of a new or used vehicle.
  • Your pre-tax salary can also cover the car running costs
  • There's a GST discount on eligible car running costs too.
  • No fringe benefits tax applies for eligible electric or plug-in hybrid cars up to the Luxury Car Tax threshold.
  • If you change jobs, your lease can move with you so you can maintain the savings.
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Novated lease example: How much can you save?

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.

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 can Novated Lease Australia help Services Australia employees?

A lot of people think that because their department has an existing salary sacrifice provider, you're locked into using that provider to arrange your novated lease.

This is not always the case. We may still be able to help you make significant saving on your car through a self-managed novated lease.

In fact, we often find employees significantly better novated lease terms compared to what your department's salary sacrifice provider is offering.

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 offer

  • We're well connected with car dealers across Australia and will help you find a car to buy and negotiate preferential prices on your behalf.
  • We shop on your behalf from a range of finance providers to secure you the best novated lease deal.
  • We work with you to estimate your car running costs and include these in your lease budget.
  • We handle all of the administrative work for you and work with your employer and salary sacrifice provider to ensure that your novated lease is established properly to maximise the tax benefits.
  • We're here to help you throughout the process, including at the end of the lease when it's time to decide whether to renew it or pay the vehicle's residual value.
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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
Our Office Locations

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Level 3, 201 Miller St, North Sydney, NSW, 2060, Australia

VIC

Suite 3, Level 2, 1 Taylor Street, Moorabbin, VIC, 3189 Australia

Company

Novated Lease Australia Pty Ltd

ABN: 69 659 639 004

ACN: 659 639 004

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