Employer Information

How do employers benefit from offering fully maintained novated leasing?

• Add Salary Value - The employer is able to provide a service that reduces the employee's taxable income. This results in an increased salary package for the employee without it costing the Employer anything!
• Attractive Staff Incentive - By offering this service as a part of an Employee's package, Employers are better able to attract quality staff.
• Reductions In Taxable Income Related Expenses - By allowing novated leasing you can potentially reduce the company's payroll tax and work cover premiums.
• Reduce Vehicle Responsibility - Unlike the provision of a company car, the responsibility of the vehicle leaves with the Employee.

How does the fully maintained novated lease work?

In order for a fully maintained novated lease to be set up, two agreements need to be put in place. The first is a finance lease between the employee and financier taken out in the Employee's name. This is the car loan component of the VIP lease. The second is a novation agreement which is entered into by the financier, employee and employer to initiate the lease. This enables the fully maintained novated lease costs to be invoiced to the employer and deducted tax effectively from the employee's salary.

The fully maintained novated lease costs are worked out over the duration of the lease and divided into equal monthly payments. These payments are recovered by the employer from the employee's salary and a portion of the GST from the ATO.

Platinum Car Loans take care of all the associated paperwork and provide a detailed Payroll Advice detailing the payroll deductions specific to each lease.

What happens if the employee leaves?

Your employee's fully maintained novated lease is fully portable, so if they leave, the lease leaves with them. Ensure that their final pay is held until the running cost budget reconciliation is received, as there may be a deficit to recover from their final pay.

What happens if the employee is overspending on the running budgets?

If a significant variance is forming in the budgeted running costs the employee will be asked to recalculate their lease to modify the deficiency.

Why use Platinum Direct Finance?

The Platinum Direct Finance group of companies will finance over 800 million dollars worth of equipment and car finance this year! Due to this volume and buying power, we can give our clients access to the best boat finance rates and boat financing products across Australia.

Novated Lease Brochures

Need further information?

If you require further car finance or car leasing assistants, either complete our friendly enquiry form or call an experienced finance consultant on 1300 554 553 today.

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