Has novated car leasing rules changed in Jul?

[revivor]

Hi,

I was at the dealer yesterday to ask about a car.
I was told by the sales ppl that new tax laws came into effect in Jul10 where you cannot lease a car on novated lease anymore for private use but only business?

Anyone encountered such a thing before? I couldn't read up anything like that on the internet.

My fleet ppl didn't say no when i requested for a few quotes for novated leasing.

Anyone?

[Dyldo]

only change of late has been Luxury Car Tax. I can see no reason other than poor training that the sales folks said that

[brad]

I renewed the novated lease on the Skoda on the 10th July.
It was effectively a new novated lease. Nothing was said by anyone & the mob I work for always comes down on the conservative side. They won't even let us salsac for a laptop anymore, even if we can prove it's for business.

novated leases & tax laws have nothing to do with the dealer - confirm if there were any changes with your employer & the lease copmpany - they are the ones that sign the lease agreement.

Also, just for a laugh, ring the dealer principal & tell him his salesmen are turning away customers.

[Dutch77]

There were no changes to the laws on 1/7/10 (that were made public anyway).

The one to watch out for with novated leasing will be any windback of the FBT concession on vehicles using what's known as the statutory formula (where the FBT is calculated based on the cost of vehicle and mileage, irrespective of business use). This one has been on the cards for a while particularly if the Greens gain any further power post the election. If you are using it predominantly for business with a logbook then there shouldn't be an issue - and I'd suggest any windback of the stat method would not be retrospective in any case. There'd be a fair old outcry if there was..

[Dyldo]

the trick with novated leases are the laws, as you point out, being quite clearly anti-environment. I mean, you get paid (via less tax) for driving more kms and polluting the environment. ahhahaha. stupid laws.

[brad]

the trick with novated leases are the laws, as you point out, being quite clearly anti-environment. I mean, you get paid (via less tax) for driving more kms and polluting the environment. ahhahaha. stupid laws.

That would be fine if the kms were legitamate but every year in March, there are hundreds of folk driving around aimlessly to knock up the final few thousand kms and reach 25001km (my wife used to get me to take her car out every night & drive Hurstville - Wollongong just to get her over the line - she was doing 22,000km p.a at the time. The extra kms reduced her FBT liability by $2700.

I wrote to The Greens about the stupidity of the situation about 7 years back & never heard back from them.

[revivor]

thanks for the info guys.

I did call up the fleet reps and they did not find anything on new novated laws that prevents personal use. Looks like the dealer tried to get me on their lease plan.