Novated lease - standard Vs fully maintained

[zenra]

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.

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

You also don't pay GST which is another saving

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.

[zenra]

IS250 lexus for someone who then left 3 months later

OUCH to the employer

[brad]

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!

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.

[gareth_oau]

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?

oh what can I say Zenra - they really like me . 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

[zenra]

oh what can I say Zenra - they really like me . 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

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

[zenra]

Bimota motorcycle

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

[brad]

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

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).

[stucam]

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


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[gareth_oau]

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

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