There’s plenty of misinformation out there regarding Novated Leasing and we wanted to set the record straight for you by debunking these 4 myths.
Myth 1. Novated leases are tricky
Not true: Once you complete the initial paperwork the lease payment is taken from the employee’s pre-tax income which can be automated.
Myth 2. You have to buy a new car
Not true: You can opt to buy a used car but generally the car shouldn’t be 8 to 10 years old at the end of the lease.
Myth 3. Only for people on high salaries
Not true: Novated leases can actually help people save money due to reducing the amount they are charged on their pre-tax income. As long as your tax rate is below the Fringe Tax Benefit (FTB) you are in the clear.
Myth 4. The Employer is the Guarantor
Not true: The Employee is responsible for making payments even if the employee leaves the business. The lease is portable so it moves with the employee.
Read more about the Novated Leasing benefits for Employees and Employers.