If you think you've got better things to do with your weekly pay than giving large chunks of it away to the taxman then there's a simple strategy to reduce your tax and hang onto more of your hard-earned. It's called salary sacrificing, salary packaging or total remuneration packaging.
In simple terms you arrange for your employer to pay some of your household bills for you out of your pre-tax income. That reduces your taxable income and the dollars the taxman can get his hands on, leaving more in your pocket. Now, now – don't feel too sorry for the taxman!
All sorts of things can be salary sacrificed, such as superannuation (a great idea), laptop computers and mobile phones, childcare, health insurance and tools. In some cases you may even be able to salary sacrifice your home loan.
One of the really smart moves is to salary sacrifice a car through a novated lease arrangement, giving you the total cost of owning that new car you've always wanted while reducing your tax burden. With a fully maintained novated lease everything from the lease through to the fuel and oil, service and maintenance, registration and everything else to do with owning a vehicle is deducted from your pre and post-tax salary.
You get the vehicle of your choice, with no restrictions on where and when you can drive it. If you change jobs you can take the vehicle with you and enter a novated lease with your new employer. You also get the benefits of fixed payments, which is great for budgeting.
So are you eligible for salary sacrificing? Full time and part time employees who have completed their probation period at work are eligible for salary sacrificing. All it takes is for your employer to agree to the arrangement.
Bad credit history
Life does not always go according to plan, and perhaps you've got a bad credit history due to past misfortune or some bad decisions in your younger days? Well don't despair, because it may not be the end of that shiny new car you've been wanting.
There are still lenders out there who are ready to look at you for a novated lease, especially if you've got a stable employment history and reasonable credit now. So don't give up, ring us instead for a chat about your circumstances and how we can help you.
New to novated leasing?
Perhaps you’re keen for a novated lease and your boss is willing, but they're reluctant because they've never done one before and it sounds like a lot of administrative work? Well you can reassure them that Fleetcare is here to make it easy for them. All they have to do is ring us on 134 333. They'll be pleased to hear just how simple and straightforward it all is. We'll fit in with their existing payroll cycle and one of our dedicated account managers will make sure that it all runs smoothly for them.