Novated Bike Lease

What is a novated bike lease?

A novated bike lease is a three way agreement between

• The finance provider
• an employer
• and a employee

How does a novated bike lease work?

Under this a novated bike lease, the employer pays the monthly motorcycle lease rentals on behalf of the employee, and provides the motorcycle for the employee to use as part of their salary packaging arrangement.

If employment ceases for any reason, or the novated bike lease contract is finalised, the novation ceases and any obligations by the employer revert back to the employee.

Residual and terms

The novated bike lease residual is the amount that will need to be paid to the finance provider at the end of a novated bike lease. novated bike lease residuals are set by the Australian Taxation Office (ATO).

What are the benefits of a novated bike lease?

• Novated bike lease terms range from 12 to 60 months
• All costs are paid in pre-tax dollars, a novated bike lease can be tax effective
• The Interest Rate is fixed for the term of the novated bike lease agreement
• Novated bike lease repayments are fixed for the term
• Lower interest rates due to the vehicle lease being secured against the motorcycle
• GST on the purchase price of the motor bike is claimed back by the finance provider on your behalf. This lowers the amount financed to the purchase price minus GST
• Subject to credit approval, we will finance 100% of the purchase price
• A novated bike lease is portable and may be re-novated from one employer to another (depending on employer acceptance)
• Choice - you can choose the car that best suits your needs
• We can have you om your new bike within 24-48 hours
• You will receive great hands on personalised service from an experienced bike leasing consultant

Who should consider a novated bike lease?

A novated bike lease is suitable for any employee who wants to include a motor bike as part of their salary package, so long as their employer offers salary packaging as an option for employees.

What are the tax implications of a novated bike lease?

GST is charged on the monthly novated motorcycle lease payment and as long as the employer is registered for GST, they can claim this back on their BAS.

GST is also charged on the residual value on the novated bike lease, and as the novation reverts back to the employee at the end of the lease, the employee is responsible for paying the GST on the residual.

Fringe Benefits Tax (FBT) is payable on the motor bike, and this expense is normally passed on to the employee. The amount of FBT depends on the kilometres traveled each year or amount of business use. The higher the kilometres and business use, the lower the FBT.

Which car financing product is right for you?

Deciding on the right car finance option for your situation can sometimes be confusing. commercial hire purchase, chattel mortgage, car lease? are just a few of the car financing options, Platinum Direct Finance can assist with your decision making and make the process simple and easy. Use our "Which car financing option is right for you?" today!

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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