If you’ve completed your probation period at work and your employer is happy to enter into the agreement with us, you’re eligible.
Yes. It’s a salary sacrifice arrangement, so your employer must be involved.
No. As long as your vehicle is less than 8 years old by the end of the lease, we're happy for you to choose a second hand vehicle. You can even novate your existing vehicle.
With Fleetcare, you can trade-in a vehicle as part of the process for your Novated Lease, however the trade-in funds cannot be used to reduce the lease principle.
Yes. We always try to find a competitive insurance quote on your behalf, but it is possible to source your own insurance. Just bear in mind that standard car insurance may not provide you the same level of cover like Guaranteed Asset Protection or Lease protection Insurance. If you're not sure about your insurance options, just speak with one of our friendly consultants.
The vehicle residual must sit within the minimum and maximum in term of the Australian Tax Office guidelines.
|Lease Term Years
||Min Residual %
||Max Residual %
When you come to the end of your lease, you have three options:
- Easily upgrade your car and start a new lease by trading your vehicle back to Fleetcare.
- Purchase the vehicle outright by paying off the residual value.
- Extend the lease and refinance the residual value.
Motor vehicle Fringe Benefits Tax (FBT) applies where a vehicle is supplied by an employer to an employee or their associate, and is available for private use.
As the employer provides the fringe benefit, they are liable for the FBT payable, however under salary sacrifice arrangements, where the employer should be no worse off than if they had offered remuneration in the form of straight salary, the employer generally charges the FBT payable to the employee’s salary package post-tax.
You can also make post-tax, GST inclusive employee contributions which reduce the taxable value and in some cases, can result in no FBT being payable at the end of the FBT year. The taxable value of the fringe benefit is calculated using either the statutory fraction or operating method.
Fleetcare's FBT service provides a calculation under each method and identifies the most cost effective method. You should always consult with a tax professional to ensure the best outcome for your personal circumstances.