Fashions come and go but one thing that never goes out of fashion is paying less tax. Now if you're a wage or salary earner you may be convinced that reducing your tax is strictly for the "big end of town" – people who can afford teams of accountants, an offshore tax haven or two and those fully franked dividend thingies.
Well think again, because there's one simple way to reduce the tax you pay while getting your hands on a brand-new vehicle at the same time and it's not just for the well-heeled. It's novated leasing, of course, and it's available to salary earners, no matter how much you earn or how many kilometres your drive.
Perhaps you've heard about novated leasing and maybe even been offered a novated lease by your employer but were a bit confused about how it all works? Well don't be, because it's pretty simple. It's essentially a three-way agreement between you, your employer and a lease provider. You choose a vehicle to lease and your employer pays the lease on the vehicle out of your salary for you before it's taxed. That reduces your taxable income, ideally pushing you into a lower tax bracket and leaving more money in your pocket each pay day and a brand-new vehicle.
Total cost of ownership
But it's not just the price of the vehicle itself that's included in a novated lease, it's the total cost of running and owning it – that's servicing and maintenance, registration, fuel, tyres, insurance, in short, everything. And that's where the savings really add up. With a Fleetcare novated lease you get all that as well as discounts on the vehicle's purchase price and vehicle servicing, half price car washes and the ability to earn BP Rewards points at BP service stations.
Save on GST
GST is a tax that’s included in almost every purchase we make. It’s easy to forget about, but what if you could avoid paying GST on the purchase price and running costs of your vehicle? With a Fleetcare Novated Lease, not only do you avoid paying GST on the purchase price of the vehicle, you can also eliminate the GST portion of your fuel, tyres, maintenance and insurance throughout the entire life of you lease. GST tax savings will depend on your employer’s accounting treatment of GST, so it’s best to check with them whether the input tax credit will be passed on to you.
Fleetcare allows you to choose just how long you'd like that novated lease from one year to five, allowing you to keep thoroughly up to date with your vehicles. That's important in an age where vehicle technology is moving so quickly. But you're not just limited to a new vehicle because you can also choose a money-saving second-hand vehicle if it's not more than 8 years old by the end of the lease.
Keeping it simple
Here at Fleetcare we strive to make the whole process as simple as possible for you and your employer, so if you're keen to get all those tax advantages of a Fleetcare novated lease then it's time to speak to your boss. If you're not on probation and your boss agrees to it, then you're eligible. The boss will be pleased to hear that we handle all the complicated administrative stuff for them. It really couldn't be simpler for you or for them.
Speak to Fleetcare
With offices right around Australia it's easy to get in touch with Fleetcare, so phone us today on 134 333 for an obligation-free chat about a money saving novated lease for your next vehicle.