Sanomi offer a simple, competitive and transparent vehicle Novated Leasing option for employees Australia-wide. Including the Governments new 100% TAX-FREE Electric Vehicle Novated Leasing Incentive.
Novated Lease
New Government Legislation has passed
The Federal Government has passed changes to the Tax Act making EV’s & PHEV’s under $89,332 FBT exempt. The legislation allows employees to Salary Sacrifice 100% of the finance & vehicle running costs from pre-tax salary. This means all employees pay no tax and no GST on these costs, leaving more disposable income in every pay.
Novated Leases combine tax benefits, flexibility, and convenience, making them an attractive option for individuals looking to finance a vehicle while optimizing tax efficiencies.
Novated Lease
Benefits of a Novated Lease
Tax Savings: One of the primary benefits of a novated lease is tax savings. The lease payments are made using pre-tax income, reducing the taxable income and potentially lowering the overall tax liability for the employee.
Flexible Vehicle Choice: Employees can choose the vehicle they want, whether new or used, subject to the finance provider’s approval. This flexibility allows them to select a car that suits their needs and preferences.
Budgeting and Convenience: Novated leases often include all vehicle-related expenses such as fuel, maintenance, insurance, and registration in one regular payment. This makes budgeting easier and more predictable for the employee.
Employer Benefits: Employers can offer novated leases as a part of their employee benefits package, helping attract and retain talent. Additionally, it can reduce the administrative burden associated with managing a company fleet, as the responsibility for the vehicle’s running costs shifts to the employee.
Ownership Options: At the end of the lease term, employees may have the option to purchase the vehicle outright, refinance the residual amount, or trade it in for a new lease, providing flexibility and continuity in vehicle ownership.
GST Savings: For businesses that are registered for GST, there may be potential GST savings on the purchase price and running costs of the vehicle.
Competitive Interest Rates: Novated lease providers often negotiate competitive interest rates, which can result in lower financing costs compared to other types of vehicle financing.
Maintenance and Repairs: Many novated lease agreements include maintenance and repair services, offering convenience and peace of mind to the employee.
