If you’re in the Australian Defence Force, you’ll need a novated lease to ensure your car is paid for at the end of your service. It’s a great way to get a new vehicle without committing to the long-term contract that comes with buying one outright. Read on to learn more about getting one and what you can expect.
Getting a novated lease
If you’re in the Australian Defence Force, you can get a defence salary sacrifice novated lease for your car. These vehicles are designed to help ADF members save money while still having access to the same benefits as other government employees.
There are many advantages to getting a novated lease for an ADF member. Besides saving on car costs, members can also take advantage of fleet discounts. In addition, they can buy laptops, airline lounge memberships, uniforms, and childcare at Commonwealth or Defence child care centres.
The benefits of a defence salary sacrifice novated lease for an ADF employee include tax savings. It is because payments are taken straight from paychecks. That means there’s no upfront deposit, and the amount paid for the car can be deducted from your pre-tax earnings.
However, there are some things you should keep in mind before you decide to sign up for a novated lease. In particular, you should ensure that the novated lease is competitively priced and includes any before-tax deductions or fees.
Before you get a novated lease for your ADF vehicle, check the contract carefully. You’ll want to see if there are any ongoing fees or administration charges. Also, make sure you understand what your payment will be.
Finding a provider with exemplary integrity who pays reimbursements quickly is essential. Another thing to consider is the interest rate you’ll pay for your novated lease. Typically, you’ll be charged two to five per cent more than other forms of financing.
While there are plenty of perks to getting a novated lease for your ADF car, there are some key factors to consider. For example, if you’re planning to make a large balloon payment at the end of the lease, the benefits might not be worth the cost.
You can also get a novated lease for your vehicle if you work in the private sector. Easifleet, for example, offers a novated lease for government and business customers.
As with any leasing, ensuring you have your best interests at heart is essential. You should research providers and look for local providers to ensure you get the best deal.
Admin fees
The Australian Defence Force has a novated lease program for employees to take advantage of. This type of lease allows employees to take out a car from their employer, and in return, the employee pays for the vehicle from their pretax earnings. There are many benefits to this type of lease, not the least of which is saving taxes.
The novated lease will save you from the taxman and pay you handsomely in the form of higher pay. In addition, you may be eligible for a suite of extras. For instance, you could claim a GST refund on cars under six years old. In addition, those with solid credit ratings can expect to get better rates.
While the novated lease may not be the first choice for the average Aussie, it is a great way to finance a new car. It also helps you keep your money where it belongs: in your pocket. If you are a government worker, it’s easy to see why a novated lease would be a worthwhile investment. A novated lease is wise, whether in the military or civilian sector.
GST on running costs other than lease rentals
Unless you’re a member of the Australian Defence Force, you may have never heard of novated leasing. It is a form of salary packaging wherein an employee buys a new or used car on a pre-tax basis. The best part is that the company claiming the credit is not required to pay any GST.
Novated leasing is ideal for ADF employees, allowing them to use their hard-earned cash to pay for a car without worrying about a monthly payment. They can even go the whole hog and buy a brand-new car. However, most will opt to lease a vehicle on a novated basis, resulting in significant savings in the long run.