Novated lease - standard Vs fully maintained

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Originally Posted by The_Hawk

Again, from what I understand the reason they take some cash pre tax and some post tax is to offset the fringe benefits tax (FBT) you would otherwise be liable for.

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Correct, so FBT is the established by the percentage, (0-14,999kms = 26% 15,000 -24,999kms = 20% 25,000-40000kms = 11% and 40001kms and up = 7%) * the GST incl cost of the vehicle (exclude rego\ctp and Stamp duty). This amount is the proportion that is taken as a POST tax deduction

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You also don't pay GST which is another saving :D

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You don't pay GST on the transactions, correct.
However, while ever a novated lease ie paid by the employer you don't pay GST on the transaction including the finance repayments but the residual you will pay GST on.

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Originally Posted by monkeyalan

IS250 lexus for someone who then left 3 months later

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OUCH to the employer

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Originally Posted by monkeyalan

thats what they were doing until a few years ago when they bought an IS250 lexus for someone who then left 3 months later leaving them with the car!

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i can top that. My mates employer bought him an expensive Bimota motorcycle & he left 6 months later after an argument with his boss. Nobody else in the company could ride a motorbike.

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Originally Posted by zenra

I agree it would work out to be an interest free loan, but every cost is coming straight from your wallet, plus isn't there a double stamp duty issue? Your employer pays the stamp duty on the purchase (which your paying back) then they have to sell the car to you, incurring a second lot of stamp duty?

I also think that if the employer looked correctly, you are also receiving a Fringe Benefit which they would have negate too?

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oh what can I say Zenra - they really like me:-D . they pay all FBT, stamp duties, GST and operating costs.

My recengtly acquired RS4 is costing me the equivalent of about $500 out of pocket per month

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Originally Posted by gareth_oau

oh what can I say Zenra - they really like me:-D . they pay all FBT, stamp duties, GST and operating costs.

My recengtly acquired RS4 is costing me the equivalent of about $500 out of pocket per month

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Thats great :)
Question for you, the $500 is just repaying the RS4 loan? You're are paying out of your pocket for the rest of the costs from your wallet?
Have you sat down and had a look at a novated lease for RS4. You might be surprised at what it would put back in your pocket?

Would love to do a quick and dirty impact analysis, if your interested, pm me.

Zenra

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Originally Posted by brad

Bimota motorcycle

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Quick, give me the bosses number and I'll buy it lol :D

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Originally Posted by zenra

Quick, give me the bosses number and I'll buy it lol :D

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This was ages back. It was a DB1. When everyones tempers had cooled a bit, my mate went back & bought it off them for a very nice price (bastard).

GST passed onto the employer is classed as an input and therefore is claimable.


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Originally Posted by zenra

Thats great :)
Question for you, the $500 is just repaying the RS4 loan? You're are paying out of your pocket for the rest of the costs from your wallet?
Have you sat down and had a look at a novated lease for RS4. You might be surprised at what it would put back in your pocket?

Would love to do a quick and dirty impact analysis, if your interested, pm me.

Zenra

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Hi Zenra, perhaps you misunderstand - my total cost is $1000 pm before tax, with the company picking up all other expenses (including maintenance fuel rego etc etc) - at the end of the depreciation, the car is given to me for $0 and the company picks up any stamp duty, GSt, FBT etc on the handover also.

I suspect the interest alone payable on a novated lease for a $100k car would make my case far more attractive