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The team at a SPA get asked all the time, “Why does my novated lease have a residual?” A novated lease has to have a residual value at the end of the lease due to the Australian Tax Office (ATO) based legislation. This value is GST exclusive. GST is charged on the amount that is left owing on the vehicle at the end of the lease. This value is calculated by the ATO and is a percentage of the initial purchase price. The key fact to understand here is that the Australian Tax Office (ATO) set the residual guidelines for all vehicle and asset leasing in Australia. You can read more about the ATO Novated Lease guidelines here. While, the ATO is happy for you to receive a tax advantage under the FBT Act, paying the vehicle off in full would be a step too far. So, why do some…

Wow, the time has flown by and the end of the Fringe Benefits Tax (FBT) year is almost here. The FBT year runs from 1 April to 31 March which...

So, you have had a few hiccups on your credit file but you still need to update your vehicle. It seems like an impossible situation with difficulty of getting to and from work with an unreliable vehicle which, in turn, costs way too much to service and repair. It can seem like an endless cycle of hand to wallet without getting ahead. A Novated lease could help you. A Novated Car Lease is a cost effective way of getting into your next vehicle. Employers know this, finance companies know this and you probably have an inkling also considering you are reading this. But like all finance-based products, there are credit checks and application criteria to meet. Disclose, disclose, disclose The most important thing to do is to disclose this bad credit information. Most banks aren’t fans of finding that item that you conveniently “forgot about”. Having an open discussion with…

If you are thinking about Salary Packaging, and in particular buying a car on a Novated Lease, it is important you do your research and know exactly what to expect. You have a few different options to consider at the end of a Novated Lease, and we will explain some of them here. We often get asked the following questions: What happens when my Novated Lease ends, and what should I do? Do I refinance the same car? Do I buy a new vehicle? Do I pay out the vehicle? Do I dispose of the vehicle? What is the process when I near the end of my lease? Will I be contacted when I near the end of my Novated Lease? How long before the end of lease does SPA contact? What can help me prepare for the end of my lease?   Do I refinance the same car? For many…

So you got that new job, earning decent money, you’re driving around in an unreliable car that burns more oil than fuel. Your mates at the barbecue the other night were talking about how they got a brand new car through work on a Novated Lease, and are going to be saving truck loads of money on the price and running costs of the car. The thought of saving a decent chunk of tax piques your interest, so you do some Googling, find a car and head into work armed with a request to do a Novated Lease Salary Sacrifice through your current employer. The conversation normally goes like this. So I want to buy a new car on a Novated Lease. I’ve got the info sorted, are you happy for me to do it? Then the Boss unleashes a tirade of questions and fears What’s a Novated Lease? Novated…

Novated Lease Company Checklist How to choose a good provider and make sure you are getting a good deal. All employees can benefit from the savings provided by a Novated Lease Company as you can claim your car as a tax deduction in the form of a salary sacrifice arrangement. There are many benefits to a Novated lease, but not all Novated Lease Companies are the same. As your Novated Lease is made up of many components, it is really important you know exactly what you are dealing with before making a decision. We consider ourselves market leaders in providing honest, transparent Novated Lease consulting services, making sure you get the right deal. We have analysed the industry and compiled a Checklist you should run through before making the final decisions on choosing a good, honest Novated lease Company.   How to Choose a trustworthy Novated Lease Company and make sure you…

What is Salary Packaging? Salary packaging is an Australian Tax Office (ATO) approved way of receiving benefits, such as motor vehicles, self-education expenses, airport lounge membership and many more, by...