A novated lease is an agreement between the employer, employee and the financier, whereby the employee can purchase a vehicle that he or she uses during the normal duties of their employment. It allows a business to lease a motor vehicle on behalf of an employee, with the responsibility for the lease and payments lying with the employee, however, the lease payments are being made from the employee’s pre-tax income.
This method of financing is a very cost effective way to achieve ownership of your vehicle. There are considerable tax benefits because the costs of the loan and all the associated costs of the vehicle, including maintenance and fuel ,can be deducted from your pre tax income, leaving you with substantially more disposable income.
You must bear in mind tho, that you, as the employee, are wholly responsible for the vehicle’s maintenance and running costs. Employees assume sole responsibility of the novated lease should they change jobs for any reason and a novated lease can be transferred to an alternate employer should you change jobs.
So contact Streams today to arrange your no obligation and personalised consultation regarding your potential Novated Lease vehicle needs…