A novated lease is one of the easiest and most cost effective ways to buy and own a car, and you don't need to be earning a senior executive salary!
From the day you decide it's time for a new car till the day you move on to your next car, Advantage makes it easy for you. Salary packaging a car - also known as a novated lease - works like other salary packaging arrangements in that it utilises your pre-tax income to reduce the cost of owning and running your car.
The difference with Advantage is that we do most of the legwork for you, and we're always available to guide you through the process. So all you need to do is drive.
Advantage sister company, Smartleasing will manage your novated lease. Through the expertise of Smartleasing, you will enjoy immediate access to the latest digital technology including, a purpose-built mobile solution for quick and hassle-free account management and eClaims, instant online credit applications, and paperless 'e-sign'. Coupled with award-winning service and the vehicle buying power which saved customers over $24m in the last year alone, we're confident that you will have a great experience.
There are a number of different ways to pay for a new car, but does one save you more than another? Is it better just to pay cash? And what about taking out a loan against your mortgage?
The following example looks at the costs of purchasing and running a Mazda CX-5 over five years, and how a novated lease compares to other popular forms of car finance.
Request a quote, and we'll put the full picture together for you in a transparent, easy-to-read quote, including the average discount we've secured on your make and model, so you can easily see how much you'll pay and how much you'll save.
If you need help, please contact us.
The comments below are of a general nature. Your employer's policy may differ. Please check with your employer and Advantage (email@example.com) in relation to your specific circumstances.
If you have private use of an employer provided vehicle (eg. you garage the car at home overnight), this is a 'fringe benefit' according to the Tax Office. As there is a limit to your salary package amount, most employers require your salary packaging of expenses to be reduced to reflect the tax value of the car. In this way, Fringe Benefits Tax (FBT) should not be payable.
The tax value of the car is typically calculated using a formula provided by the Tax Office. In most instances, the value is calculated as 20% of the cost of the vehicle.
For example, a $30,000 vehicle will have a tax value of $6,000 ($30,000 x 20%). Normally your salary packaging of expenses will be reduced by this value ($6,000 in our example). In broad terms, if you can salary package $15,900, this amount will need to be reduced by the tax value of the car ($6,000). Approximately $10,000 of expenses will now be allowed to be salary packaged.
Advantage will calculate your salary package amount with the assistance of your employer. With full and timely information, no FBT should be payable.
It is important we have correct and timely car information. Therefore, please contact us if: