Advance Car Loans’ advice on the selection of novated lease options
Advance Car Loans has advised customers to think on the lines of what is the level of business use for the vehicle when selecting their novated lease options (standard novated lease or fully maintained novated lease).
If the customer has 80% business use for the vehicle, then no matter what finance option is chosen, the customer can claim 80% of the running costs. With a standard novated lease the customer can receive the taxation benefit on the finance every time he gets paid, and can claim the business use on the running costs at the end of the financial year. The customer can also choose not to make a claim on these expenses and use them to offset his FBT liability.
If the business use for the vehicle is less, then a fully maintained novated lease is one of the only ways through which the customer can receive a taxation benefit for the vehicle’s running expenses. Items such as fuel, rego, car insurance, servicing and repairs can come from the customer’s salary pre-tax, offering a big savings on these recurring expenses.
20-Feb-2007