Novated Salary Packaging
These calculations are to be used for Novated Lease
estimates only do not constitute a quote or approval for finance.
Packaging a motor vehicle via a Novated Lease continues to offer employees a tax effective means of leasing a vehicle of their choice.
Summit's Novated package provides organisations with access to a comprehensive facility that can cover both tool of trade vehicles and the employee Novated Lease vehicles. In addition we have designed our Novated packages around the effective Fully Maintained facility to ensure employees gain the same benefit and efficiency from their lease as does the organisation for its tool of trade.
Novated Operating Leases
A novated operating lease provides flexibility and is attractive for those employees who don't want residual value obligations at the end of the lease.
Summit takes on the risk of ownership and the car is registered in Summits name while the lessee has possession of the vehicle.
Provided the vehicle is kept in the condition required by the agreement at the end of the lease, as this option is the same as a Tool of Trade operating lease in that it is subject to end of lease damage and excess kilometres, the Lessee can return the vehicle to Summit without responsibility for any loss that may be incurred by Summit on resale.
Employees who take this option are encouraged to vary their contract when it becomes apparent they will run over or under their leased kilometre limit. They are also encouraged to have damage that requires repairs rectified prior to the end of the lease.
Novated Finance Leases
This a standard lease with the residual value disclosed and risk borne by the employee. Residual values are set to the Australian Tax Office minimum values depending on the term of the lease and the residual value plus GST must be paid to the lessor at the end of the lease.
|Lease Term||Residual Values|
When the Employee decides to enter into a Novated Finance Lease, the vehicle is registered in the Employees name while Summit retains legal title to the vehicle and most of the risks and benefits of ownership are transferred to the Employee. At lease end the Employee is responsible for payment of the residual value of the vehicle plus GST. If there is a shortfall between the actual vehicle sale price and the agreed residual value on the lease, the obligation to make up the difference sits with the Employee (Lessee).
Important Changes to FBT
On the 9th May 2011 Treasurer Wayne Swan announced an important change to the Statutory Formula calculations for FBT on motor vehicles.
Click here, for further detail and breakdown of these changes.