A defence novated lease offers significant tax benefits and advantages if you’re a member of the Australian Defence Force. This vehicle leasing arrangement lets you pay for your car through salary deductions, thus reducing taxable income.
Saving money on monthly expenses and taking some pressure off can be a great way to manage stress levels. Plus, it provides plenty of flexibility.
Tax savings
Are you an Australian Defence Force member looking to save money with a novated lease? This arrangement allows you to use part of your salary towards purchasing a vehicle, with payments deducted from pre-tax income. Not only does this help avoid paying income tax, but it may also save on GST.
Novated leases offer savings that vary by individual, but you could save up to $3,000 on the cost of a car, depending on your situation. There are various areas in which these savings can be made, such as discounts on the sale price and fuel costs (GST is not applied when leasing cars).
Tax savings can be significant, but it’s essential to remember this scheme can be complex and confusing. In addition, some novated leasing companies make misleading statements in their advertisements; therefore, you should shop for the best deals available.
Change your vehicle
If you live and work for a defence force employer, a defence novated lease could be your answer to saving money on car costs. This ATO-approved arrangement allows you to finance either new or pre-owned vehicles through your pre-tax income, with all repayments and running costs bundled into one monthly payment.
The defence novated lease process is relatively straightforward. It involves a three-way agreement between yourself, your employer and the novated leasing company.
A novated lease is an alternative to purchasing a new or second-hand vehicle outright, allowing you to save up to $5,885 by exempting GST from the purchase price. Plus, with this leasing arrangement, you’ll save on fuel, servicing, insurance and tyres, too – making it a great value proposition!
When shopping around for a novated lease provider, ensure the company you select has an excellent reputation and is honest and dependable. Furthermore, ensure they are transparent about fees and provide a quote that includes all running costs.
Verifying whether a novated lease company is locally operated is wise, as this guarantees the best customer service. In addition, local providers usually have more negotiation power with car dealerships and may provide exclusive deals on vehicle purchases and running costs.
Automotive Lease Packaging (ALP), a Sydney-based provider, is another viable option. Established in 2004 with an experienced consultant, ALP secures customers the best car purchase prices and ongoing running expenses possible.
Manage your finances
Novated leasing is an excellent way to save on purchasing a new vehicle. Not only does it reduce costs on car prices, but it also helps you better manage your finances in other ways. With no-cost expenses like insurance and petrol at low levels, novated leases help keep costs under control.
The great thing about a novated lease is that it can be done through your employer’s existing salary packaging program. It eliminates the need to search for misleading ads or sketchy websites.
While novated leases can save you money, it’s essential to do your due diligence and compare multiple offers before committing. Don’t get scammed into paying for features you don’t need or overpaying for extras that won’t make life easier. In addition, selecting the right company is vital in getting value for your dollar; many companies provide novated leases to defence force members, so be sure to shop around before signing anything.
Vehicle Solutions
As the Australian Defence Force (ADF) continues to evolve, it is essential to have a vehicle solution that meets their needs and ensures operational success. They can affordably get a customised vehicle tailored to their specifications through the novated lease.
A novated lease is an all-inclusive salary packaging option that lets you finance your vehicle and running costs from pre-tax income. It helps reduce your tax burden while giving you GST savings on all vehicle expenses.