If every cloud has a silver lining, then the silver lining in the COVID-19 pandemic is the tax cuts introduced in the 2020 federal budget that promises to line your pockets with a little more cash each payday.
So how much can you expect from the government’s largesse? Well if you earn between $48,000 and $90,000 you’ll get about $20 per week extra. Earn more than that and you’ll have anything up to $2430 per year, or about $47 per week more.
But that’s not all, because the government has also changed the middle tax bracket so that you can earn a little more while still paying less tax.
The upper limit in the 19 per cent tax bracket has jumped from $37,000 to $45,000, while the upper limit in the 32.5 per cent tax bracket has risen from $90,000 to $120,000.
Tax relief is always welcome news, of course, but there’s a smart way to lower your taxes each pay day that doesn’t rely on the government’s COVID-related tax stimulus.
I’m talking about novated leasing a vehicle. It’s the ideal way to get behind the wheel of a new vehicle of your choice while hanging onto more of your hard-earned money each pay day.
So how does that work exactly? Well unlike the conventional way of buying a car and paying off the loan and the running costs from your salary after it’s been taxed, a novated lease takes the vehicle’s cost and the total cost of owning it from your salary before it’s taxed.
Lower your tax bracket
That means there’s more money for you each week and less for the tax man. In an ideal situation it may even push you into a lower tax bracket altogether. So, if your income is hovering around the lower end of that higher tax bracket a novated lease is the perfect opportunity to take full advantage of the government’s tax cuts.
Now it’s worth stressing that it’s not just the purchase price of the vehicle that’s coming out of your pre-tax salary, it’s the total cost of running it – that’s fuel, maintenance, insurance, registration, tyres, the lot.
That’s going to save you a lot of money, but the savings don’t end there by any means, because with a Fleetcare Novated Lease you’ll also be saving money on the initial price of the vehicle thanks to Fleetcare’s bulk-buying power.
Plus, you’ll enjoy GST savings of your vehicle’s purchase price, fuel, servicing, tyres and more.
Peace of mind
The benefits of a Fleetcare Novated Lease aren’t just financial. There’s the peace-of-mind you get from the security of roadside assistance, crash management and the knowledge that every aspect of your lease is being taken care of by a dedicated bunch of experienced professionals making sure that everything runs smoothly for you.
Plus, you'll never be caught out of pocket when things like your registration is due, or when you need and urgent tyre replacement. It's all accounted for in your simple lease payments.
If novated leasing sounds like a great idea in principle but a bit complicated in practice you can relax, because it really isn’t. In plain terms, it’s a three-way agreement between yourself, your employer and Fleetcare.
With 30 years of experience behind us, Fleetcare is here to make the whole process as easy as possible for you. We’ll explain how it all works for you, talk to your employer, source the vehicle of your choice and handle all the rest of it for you.
If you’d like to find out more about the many benefits of a Fleetcare Novated Lease, call us today on 134 333 or email us at email@example.com.