Novated Leases

A Tax Effective way to finance a vehicle and it's running costs

Novated leasing is a valuable component of salary packaging that offers significant financial benefits. Instead of buying a car outright or taking out a loan, you lease a vehicle through your employer forming a three-way agreement between yourself, your employer and a finance provider. Under this agreement, financial obligations are transferred to your employer who makes payroll deductions direct from your salary to cover these obligations.

These payroll deductions can be a combination of pre-tax and post-tax, or pre-tax only depending on the type of vehicle packaged or your employer's Fringe Benefit Tax classification.

The deductions cover your lease payments and associated costs such as fuel, registration, insurance and servicing in a tax-effective manner, potentially leading to substantial tax savings. While fringe benefits tax may apply, salary packaging a vehicle through a novated lease can reduce your taxable income, provide GST savings and lower the overall cost of running a car.

Novated leasing is an attractive component of salary packaging, offering a cost-effective and flexible way to finance a vehicle while potentially enjoying significant financial benefits.

Key Benefits:

  1. Tax Savings: Pre-tax payments reduce the employee's taxable income, potentially lowering the tax deducted from their salary. This can result in significant tax savings depending on the employee's marginal tax rate and Medicare levy.
  2. GST Benefits: GST incurred on lease expenses is not included in payroll deductions. Instead, it is credited to your novated lease account and recouped from your employer, providing additional financial benefits. The lessor may also claim the GST on vehicle purchases, lowering your financed amount!
  3. Flexibility: Choose your vehicle, whether new, used, petrol, electric, or even your existing vehicle. There are few restrictions on makes or models, allowing you to select a vehicle that best suits your needs and preferences.
  4. Budgeting: Get rid of bill shock! Novated leasing bundles all car-related costs - such as fuel, insurance, registration, and maintenance - into one easy payment. Novated leasing takes care of the budgeting for you.

What is included

Prevent unexpected financial surprises with budget management for your vehicle costs by combining all of your running costs into a single, fortnightly † payment. Your designated Relationship Manager will assess your projected vehicle usage and customise a budget to encompass all anticipated expenses for operating and financing the vehicle throughout the lease term. Including:

  • Lease payments
  • Insurance
  • Registration
  • Fuel (including electricity for electric and plug-in electric hybrid vehicles)
  • Service and Maintenance (including car washes)
  • Tyres
  • Roadside Assistance (optional)

With a novated lease, all expenses related to your vehicle are accounted for, providing you with reassurance.

Statewide values your choices and support local businesses, empowering you to select service providers conveniently located near you!

† Frequency is based on pay cycle. In some cases, Qld Government employees are paid monthly, hence their lease payment frequency will also be monthly.

End of Lease

At the end of the lease, or if you cease employment with your current employer during the lease, you are responsible for any remaining obligations.

Starting your Novated Lease Journey

Five steps to your next vehicle!

Embarking on your novated lease journey is an exciting step towards your next vehicle. As with any journey, a good start begins with careful planning. Understanding the process and gathering the right information will ensure a smooth and beneficial experience.

You should always start your novated leasing journey with a quote. This initial step helps you begin to understand the financial implications and benefits tailored to your specific situation. Here's a simple guide to get you started:

  1. Obtain a Quote: See how a novated lease will affect your budget. Your quote will detail the costs and potential tax savings, helping you make an informed decision.
  2. Select Your Vehicle: Whether you have a specific vehicle in mind or are open to options, you have the freedom to choose from a wide range of makes and models, including petrol, electric, new, or used cars.
  3. Finance Approval: Your Statewide Relationship Manager will liaise with you, obtaining relevant information and undertake this process for you.
  4. Documentation: After finance approval, you'll enter into the legal documentation, including the Lease Agreement and Standard Novation Agreement. These documents outline the terms and conditions, including the lease duration, payment structure, and your responsibilities.
  5. Drive Away: With everything in place, finance settlement will occur and you're ready to hit the road.

Remember, careful planning and understanding your options will set you on the path to enjoying the full benefits of your novated lease. Get started with a quote today and take the first step towards a smarter, more flexible way to finance your vehicle.

Establishing Your Novated Lease!

1. No Cost Information and Quote

Contact Statewide here or submit an enquiry here

Your personal Relationship Manager is appointed!

Your Relationship Manager will provide you with a quote

Your Relationship Manager will explain your quote

2. Documentation and Vehicle Delivery

Ready to proceed!

Complete your Finance Application

Statewide obtains Vehicle Tax Invoice

Documentation between all parties completed

Vehicle finance is settled

Congratulations, your vehicle is ready to collect!

3. Your Novated Lease Account is Setup

Statewide advises third parties of payroll deductions

Your Welcome Email arrives!

Your fuel cards are ordered

Your online Statewide account login details arrive

Download the Statewide App

 

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Non-Queensland Government employees please click here.