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.

A Novated Operating Lease is attractive to Employees who don’t want any residual value risk or GST obligation 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 (any accident damage is repaired and is within the leased kilometre limit) at the end of the lease, the Lessee can return the vehicle to Summit without responsibility for any loss that may be incurred by Summit on resale.

Novated Operating Leases

is similar to a car rental and the employee/lessee is not responsible for the residual value on the lease. Summit shoulders most of the risk of ownership, while the employee/lessee has possession of the vehicle. Provided the vehicle is kept in the condition required by the agreement, at the end of the lease, the lessee can hand back the vehicle without responsibility for any loss that may be incurred by Summit on resale.

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. This option is the same as a Tool of Trade operating lease in that it is subject to EOL damage and excess kilometres. 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.

When the Employee decides to utilise 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).