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:
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:
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:
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
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