Whether you’re in the army, navy, or air force, a defence novated lease makes it possible for SA Government employees to drive a new car and pay all its running costs. You might even save thousands.
Salary packaging a vehicle allows you to use pre-tax salary for your car and its running costs, saving GST and income tax. The savings are enormous compared to buying the exact vehicle outright with a car loan. For more information about the Vehicle Solutions defence novated lease, click here.
Tax Savings
A novated lease is an arrangement between an employee and their employer that allows the finance and car running costs to be paid through pre-tax salary deductions and post-tax wages. It means employees can save thousands on the car and its running costs.
This is because the employer covers the GST (Goods and Services Tax) on the car, tyres, servicing, registration, insurance, and fuel, not the employee, which reduces their taxable income and requires them to pay less income tax. This is why it’s essential to work with a specialist who understands the intricacies of FBT laws.
It’s also why Vehicle Solutions works with clients to tailor their budget lines so that the costs relate to their driving habits and circumstances. This includes negotiating with dealerships, assisting with paperwork and number crunching to ensure the best value for our clients.
Flexibility
Novated leasing provides flexibility over a car allowance by allowing employees to choose the vehicle that suits their needs while still providing significant savings on running costs. This arrangement also helps to reduce income tax and increase disposable income. For more information about the Vehicle Solutions defence novated lease, click here.
Unlike traditional car loans, novated leases do not include upfront finance fees or a fixed interest rate. This allows employees to find a vehicle with a competitive interest rate that best fits their budget.
Employees can save on tyres, scheduled maintenance, insurance, and registration with a novated lease. They can also claim back GST on a new tyre purchase and service or re-registration expenses and save money on fuel through a national fleet pricing card.
Flare’s novated leasing solution for MYOB Payroll automates 95% of the traditional admin associated with a novated lease and streamlines deductions. This means less headaches and more time to spend on the things you enjoy. Plus, Flare works with various suppliers to ensure that novated leases are tailored for everyone’s circumstances.
Savings on Running Costs
You’ll get significant savings on your car purchase price and running costs through a novated lease. This is because all vehicle expenses like petrol/electricity, servicing & and maintenance, rego and replacement tyres are included in your monthly payments.
All remaining funds at the end of your lease term are returned to you. For more information about the Vehicle Solutions defence novated lease, click here.
As locally operated novated leasing specialists, we can secure compelling fleet discounts and save you more money on your car purchase and running costs. So, whether you’re looking for a family vehicle or something beastly to punish off-road trails, we can design a defence lease to suit your needs and save you thousands. Contact us today for a personalised quote.
Choice
The biggest advantage of a defence novated lease is the significant income tax savings you can receive. Paying for your vehicle and running costs through salary deductions will save on GST and Fringe Benefits Tax (FBT), giving you more disposable income.
You can also choose your vehicle, dealership, and finance provider under a defence lease. SA Government Employees were previously required to contract just the administration function of Salary Packaging with a sole provider – but now you retain the right to find your car, lease (finance) and insurance under a self-managed Novated Lease arrangement.
So, whether you’re after something sleek and stylish to slick through town or a beastly SUV to punish off-road trails, you can have the car of your dreams and save thousands simultaneously with a defence lease. Get a quote today.