Hi all,
A bit of a tricky question that I hope some guys will be able to shed some light on for me.
Does anyone use a novated/operating lease for imports?
It’s a common practice at my work to use novated leases that breaks down as follows:
A car is purchased through Fleet Australia on behalf of the employee.
Repayments are then paid BEFORE tax for the period of the lease (say three years)
At the end of the lease the car has a residual value of say 30% which the employee can pay to own the car outright. This can be profitable as most cars don’t drop below 30% residual after three years which means you can buy the car and sell it at a profit.
The benefits of a novated lease are substantial for those of us earning in excess of $40,000-$50,000 are taxed almost half of each dollar for the top parts of our income. As the car payments come out 'pre-tax' our taxable incomes are therefore less.
In simple terms $10,000 repayments in one year only cost the employee $5,400 in “take home income”
Now the reason for my post. I want to novate lease an R34 GTT however my company will only allow us to buy new so I want to get my own novated lease and charge the costs back to the company so I can get my import.
Does anyone do this already? If so which company are you novating through????