When it comes to the best type of car leasing agreement in Australia, nothing comes close to a novated lease contract. It’s the most option for Aussies to get their dream car without having to sacrifice too much. However, they do need to make some calculations to make sure that their total payment coincides with their ideal budget. That’s when a novated lease calculator Australia comes in handy. In this article, we’re going to talk about what novated lease is and why you’ll need a novated lease calculator to obtain a lot of benefits from your car leasing contract.
What Is a Novated Lease?
A novated lease deal is a type of car leasing that involves three parties, the leasing company, you, and your employer. Novated lease is well-known for its tax benefits. The main reason why it’s called a novated lease is that it can help you access money that might otherwise turn into tax deductions.
So, when you put everything into the scene, a novated lease means that you, the employee, will benefit as your employer will play a vital role in your leasing agreement. They will grant you the opportunity to pay your novated lease as part of your salary package. Since the deduction is taken from your pre-tax salary, you will save money on both your payment and your taxes as well. Now that’s a win-win situation for you since you can benefit from all sides of the coin. However, for us to reach that moment, you need to make sure you know how much you’ll be paying. You can do that through a novated lease calculator Australia.
How to Use a Novated Lease Calculator?
A novated lease calculator is an online platform that’s available in various auto insurance company websites, particularly the company that you’re going to apply for a novated lease. They will provide you with all the calculations that you need to know to determine how much you’ll be spending. You can calculate your income tax using a novated lease calculator and determine you now reduced salary. That way, you’ll be aware of how much is deducted to your salary per month. It also means you will have more disposable income. The final tax bonus is not having to pay for your GST upon the final price of your car. By doing so, you’ll reduce your overall cost by a whopping ten per cent.
With a novated lease calculator, you can calculate and crunch down the important numbers to come up with the ideal payment that fits perfectly with your budget. Visit our website and try our novated lease calculator Australia today!