Guest jenpen87 Posted February 12, 2012 Report Share Posted February 12, 2012 Hi I've been reading about Novated leases, basically salary packaging a lease car on http://www.salarypackaging.com.au/salary-package-car/. How do you get your employer to do this for you? I'm planning on working at King Edward Memorial Hospital as a midwife. I've had a lease car through my NHS trust previously and this sounds like a similar scheme. Anyone have any experiences of novated leases? Thanks:cute: Quote Link to comment Share on other sites More sharing options...
portlaunay Posted February 13, 2012 Report Share Posted February 13, 2012 If you're going to work in the public sector here there are a range of salary packaging options. Take a look at this site for details and there's a section about car leasing too; http://www.smartsalary.com.au/ It's not your employer who does this, you just select the package you want and, providing you qualify, opt in and get someone like smartsalary to sort out the paperwork. In order to take advantage of the car leasing you have to be on either a 6 or 12+ month contract, I can't remember which it is. I work in healthcare and my area is metrowide and involves a reasonable amount of travel from Joondalup to Rockingham and out as far as Armadale. I was a little worried about the tax implications when I first started (I just didn't know the system well enough to make an informed choice), and so I turned down the option of a company lease car in favour of a daily use pool car. It suits me fine and I always have the option to use my own car and claim mileage on it if I have an early morning meeting somewhere. Quote Link to comment Share on other sites More sharing options...
Guest jenpen87 Posted February 13, 2012 Report Share Posted February 13, 2012 Thanks Portlaunay! Do you know if you can salary sacrifice further, for example your mortgage repayments, if you already have a novated lease car. Thanks. Quote Link to comment Share on other sites More sharing options...
basicweb Posted February 13, 2012 Report Share Posted February 13, 2012 If you work in health or for a nfp (charity) there are a lot more things you can salary package than if you work for a 'normal' company. I work for a nfp part time and we use EPAC to salary package, here's a link to some info that may help https://www.epacsalarysolutions.com/public/WhatCanYouSalaryPackage.aspx Tracey Quote Link to comment Share on other sites More sharing options...
robshire Posted February 13, 2012 Report Share Posted February 13, 2012 You can salary sacrifice super annuation and laptops as well as other things. You should find them listed on novated lease company websites. As for the car you can lease from a dealership. If you want to take a fully maintained lease ie fuel and servicing you would need to speak to a specialist. It can work out well however sometimes it can be an expensive way to buy a car. Might be worth talking to your accountant. I have just left a dealership for a different career but I am always happy to help and know many people in the motor trade. Please pm me if you would like any further help. Rob Quote Link to comment Share on other sites More sharing options...
Guest Jillie14 Posted March 14, 2012 Report Share Posted March 14, 2012 Hi all, Please see enclosed information on novated leasing which will hopefull dispel some of the myths surrounding it for everyone! It is not as complex as you may think and can actually work out less expensive than you may think as you save on tax as it is deducted from your salary at source before any income tax deductions - and who doesn't LOVE to pay less tax!! You always know how much money it is going to cost with no hidden extras like repair bills if anything goes wrong allowing you to budget more effectively. You also get discounts on fuel/maintenance and repairs and 24/7 roadside assistance = more $$$$$ in your pocket New or used cars are eligible so long as they are less than 8 years old at the end of the lease and up to date with servicing as recommended by the manufacturer - you can even novate your existing vehicle if you so wish! If you need any more information just let me know but I have included more in the link below for your perusal. Good luck with the job Clickhere Quote Link to comment Share on other sites More sharing options...
Guest jenpen87 Posted March 14, 2012 Report Share Posted March 14, 2012 Hi all, Please see enclosed information on novated leasing which will hopefull dispel some of the myths surrounding it for everyone! It is not as complex as you may think and can actually work out less expensive than you may think as you save on tax as it is deducted from your salary at source before any income tax deductions - and who doesn't LOVE to pay less tax!! You always know how much money it is going to cost with no hidden extras like repair bills if anything goes wrong allowing you to budget more effectively. You also get discounts on fuel/maintenance and repairs and 24/7 roadside assistance = more $$$$$ in your pocket New or used cars are eligible so long as they are less than 8 years old at the end of the lease and up to date with servicing as recommended by the manufacturer - you can even novate your existing vehicle if you so wish! If you need any more information just let me know but I have included more in the link below for your perusal. Good luck with the job Clickhere Thanks for the info! It seems like the way to go, although the residual to pay at the end of the lease is a little daunting. I'm also interested in salary packaging mortgage repayments eventually too, do you know if this can be done when you already have a novated lease? Also, can you lease more than one car? This would all come out of my salary as I don't think my other half will be able to salary package being a sparky! I've been looking at smartsalary.com.au, as you can get instant quotes for the cars you are interested in, then I can make more of an informed choice. Are you glad you went with a novated lease? My other half is sceptical, and thinks we should how much it is to buy and run a car ourselves:wacko:. Thanks again:cute: Quote Link to comment Share on other sites More sharing options...
Andyrob Posted March 14, 2012 Report Share Posted March 14, 2012 I have a novated lease, and I'm delighted with it. It was really straight forward to sort out, and the best thing is that I know that I don't need to find the money for fuel, servicing, rego etc as its all included. Fully maintained is the way to go, as it gives the biggest tax saving in your pretax contributions. It is possible for you to novate a second car, but only if your employer agrees to it. You can have someone like Smartsalary source the car for you and try to get a deal, or you can go to the dealer yourself and negotiate. The latter is how I did it, and he offered me a $6500 discount from the list price straight up. Then I sent the paperwork to Smartsalary and my employer, and collected the car around a week later. Really simple. Smartsalary (I never looked into any others, as my employer has a set-up with them already) can also include some other handy extras. Their insurance is fully comp for any driver. They give breakdown, extended warranty, tyre and rim insurance, and also a good discount on scratch / chip repairs. All in all, delighted. I know there is a payment at the end, but they have to set these realistically under the conditions of novated leasing to ensure that the future value of the car is covered. And I will trade in when my lease is up and novate again Hope this helps Quote Link to comment Share on other sites More sharing options...
Guest Jillie14 Posted March 15, 2012 Report Share Posted March 15, 2012 I'm really glad we went for a novated lease, it was simple and I now know how much I will have to pay each month with no extras at all, not even fuel....particularly with the current increase in fuel prices as you always recieved discounted fuel and gain the tax benefit of not paying gst on it either. I would deffo go fully maintained - as I have - and again you know where you are with your money and aren't gonna get a big surprise if something goes wrong with it. It will be down to your employer if you can novate a second vehicle, and I'm not sure about the mortgage salary sacrifice as it's not my field of expertise but your HR should be able to tell you all about that. If you are looking at cars, we can buy on your behalf as due to the fact that we purchase many vehicles from many dealer groups we get a really good discount, more than you would be able to negotiate yourself in most instances and our insurance is also fully comp and we include breakdown and extended warranty too etc as Andyrob talks about above. You may even find that you can have a new or newer car than you first thought because of this! Don't worry about the residual at the end, you can re-finance it if you want to keep the vehicle (provided it is under the 8 year age band at the end of the term), or you can pay the residual and keep the vehicle if you have the cash, or sell the car and yourslf and pay the residual. We can also arrange resale for you. If you are worried about a shortfall between what it is worth and what you sell it for we also have an insurance that can cover you for this if required. Hope this helps and happy car shopping Quote Link to comment Share on other sites More sharing options...
Guest jenpen87 Posted March 15, 2012 Report Share Posted March 15, 2012 I have a novated lease, and I'm delighted with it. It was really straight forward to sort out, and the best thing is that I know that I don't need to find the money for fuel, servicing, rego etc as its all included. Fully maintained is the way to go, as it gives the biggest tax saving in your pretax contributions. It is possible for you to novate a second car, but only if your employer agrees to it. You can have someone like Smartsalary source the car for you and try to get a deal, or you can go to the dealer yourself and negotiate. The latter is how I did it, and he offered me a $6500 discount from the list price straight up. Then I sent the paperwork to Smartsalary and my employer, and collected the car around a week later. Really simple. Smartsalary (I never looked into any others, as my employer has a set-up with them already) can also include some other handy extras. Their insurance is fully comp for any driver. They give breakdown, extended warranty, tyre and rim insurance, and also a good discount on scratch / chip repairs. All in all, delighted. I know there is a payment at the end, but they have to set these realistically under the conditions of novated leasing to ensure that the future value of the car is covered. And I will trade in when my lease is up and novate again Hope this helps Thanks for the info. I've been looking at some quotes using the calculator on the smart salary website. Can you tell me if the amount they quote fortnightly is the amount I pay with my post tax salary? I'm a bit confused as the breakdown it provides has both pre and post tax allocated amounts which seem to total the amount you pay fortnightly. Hope this makes sense! Quote Link to comment Share on other sites More sharing options...
Guest Jillie14 Posted March 16, 2012 Report Share Posted March 16, 2012 Thanks for the info. I've been looking at some quotes using the calculator on the smart salary website. Can you tell me if the amount they quote fortnightly is the amount I pay with my post tax salary? I'm a bit confused as the breakdown it provides has both pre and post tax allocated amounts which seem to total the amount you pay fortnightly. Hope this makes sense! Hi there, I'm not familiar with the tool on the smart salary website however if you do want a breakdown can I suggest that you Adam on 1300 655 170 and he will be able to give you more accurate information. Alternatively feel free to e-mail novated@fleetcare.com and they will send you through a full breakdown. Hope this helps Quote Link to comment Share on other sites More sharing options...
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