Salary sac­ri­fic­ing through novated leases

The Australian Education Reporter - - SALARY SACRIFICE: NOVATED LEASES -

WA owned and op­er­ated Mo­tor­plan of­fers novated leas­ing, fleet man­age­ment ser­vices and per­sonal and as­set fi­nance.

Sup­ported by an ex­ten­sive panel of top lenders, the com­pany is man­aged by experienced mo­tor in­dus­try and fi­nance pro­fes­sion­als with well es­tab­lished in­dus­try con­nec­tions all over Aus­tralia.

A novated lease is one of the most cost ef­fec­tive ways to own a ve­hi­cle with great tax ad­van­tages even when the ve­hi­cle is used en­tirely for per­sonal pur­poses.

By de­duct­ing costs as­so­ci­ated with the run­ning of the leased ve­hi­cle from pre-tax in­come, em­ploy­ees will see a re­duc­tion in tax­able in­come and there­fore in­come tax.

The ve­hi­cle is fi­nanced ex­clu­sive of GST and the run­ning costs of the ve­hi­cle are GST ex­clu­sive for the em­ployee.

Not only will em­ploy­ees ben­e­fit from GST and in­come tax sav­ings, Mo­tor­plan’s buy­ing power and in­dus­try con­nec­tions will see them en­joy fleet dis­counts on the pur­chase price of the ve­hi­cle as well as dis­counts on the run­ning costs; in­clud­ing ser­vic­ing, tyres, in­sur­ance, fuel and road­side as­sis­tance. Mo­tor­plan has ex­ten­sive ex­pe­ri­ence in fi­nanc­ing and ar­rang­ing salary pack­ing through novated agree­ments and has worked with many em­ploy­ees in the ed­u­ca­tion sec­tor.

Tra­di­tion­ally, novated leases have been treated as a com­mer­cial fi­nance prod­uct, al­low­ing big leas­ing com­pa­nies to con­fuse the facts and avoid dis­clos­ing rates and fees with dif­fi­cult to read quo­ta­tions and pa­per­work.

Mo­tor­plan how­ever prides it­self on com­plete trans­parency, pro­vid­ing easy to read quo­ta­tions and full dis­clo­sure of all rates and fees.

Mo­tor­plan quotes present all the facts in an easy to read for­mat, that in­clude a break­down of em­ploy­ees home pay and in­come tax sav­ings specif­i­cally tai­lored to their pay­roll cy­cle.

Em­ploy­ers can also ben­e­fit from a pos­si­ble re­duc­tion in pay­roll tax and workcover costs, and be­come an em­ployer of choice.

To avoid be­ing fleeced by a novated lease, more in­for­ma­tion on Mo­tor­plan’s ser­vices can be found at: www.mo­tor­plan.com.au.

Mo­tor­plan of­fers easy novated leas­ing so­lu­tions.

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