Tax Effective Means Of Acquiring And Operating A Motor Vehicle
A Motorpac Novated Lease allows your employer to deduct a portion of the entire vehicle expenses out of an employee’s Pre-Tax income. Paying for a vehicle this way results in reducing your taxable income and consequently reduces the amount of tax that you pay. Substantial savings can be achieved over acquiring and operating a vehicle from before tax income. The savings on tax means that a Novated Lease can be the cheapest and smartest way to own and operate a vehicle. In some cases it can be cheaper than paying cash for the car. Talk to us today to see your savings
When buying a vehicle through a Novated Lease the GST is not included in the finance and running costs. This provides a 10% saving for all expenses associated with the vehicle, in addition to the income tax savings. The financed amount is the GST exclusive amount of the vehicle i.e. buying a vehicle for $33,000 (GST Inc.) would see the $3,000 of GST come off the price of the vehicle.
A Motorpac managed Novated Lease passes the GST benefit of operating the vehicle, claimed by the Employer, on to you.
We are more than happy to assist in the purchase of most new vehicles. You will benefit from substantial fleet discounts on a majority of makes and models. Please note that Motorpac do not charge procurement fees for sourcing your new vehicle.
Flexibility Of Choice
The vehicle can be new, used or even a luxury vehicle (used vehicles can be no more than 9 years old at the end of the Lease Term). You also have the choice to add any additional extras to the vehicle such as Window Tinting, Tow Bars, Paint Protection etc.
You decide the term of your Novated Lease. You can choose anywhere between one and five years.
No Business Use Required
A Novated Lease can be used for total private use. You can even Novate a motor vehicle for your spouse or a family member.
Motorpac provide a Fleet Card which enables payment for your fuel, servicing, tyres, batteries and even windscreens at selected outlets. This allows convenience to pay for these expenses direct from your Motorpac Account rather than coming out of your own pocket.