Who is this for
For professionals who use their personal car for business purposes, Novated Leases, combined with the operating cost method, offer a strategic leasing solution. The more one uses their vehicle for business travel, the greater the savings. Salespeople, consultants, and real estate agents capitalise on frequent travel benefits. Medical professionals, contractors, and field engineers value it for moving between work locations. Regional managers, mining workers, educators, agricultural experts, public speakers, and researchers leverage these leases for diverse commutes, merging personal and business use with flexibility and cost-efficiency.
Operating Cost Method Novated Lease vs. Traditional Novated Lease
What’s the difference?
The primary distinction between the two methods lies in the way business use is accounted for:
The Operating Cost Method Novated Lease allows employees to use their personal car for business purposes and specify a business use percentage. This percentage indicates how much of the car’s use is for business-related activities. The higher the business use percentage, the greater the potential tax savings, making it a highly efficient option for those who use their personal vehicle substantially for work.
In contrast, the Traditional Novated Lease does not take into account the specific percentage of business use. It provides tax benefits through salary packaging but doesn’t offer the added advantage of adjusting for a business use percentage, which can lead to maximised tax savings in the Operating Cost Method.
Why Employees Love It
- Significant Tax Savings: Maximise deductions through salary packaging.
- Freedom in Vehicle Selection: Choose a car that resonates with your style.
- Hassle-Free Experience: All vehicle-related expenses are bundled for convenience.
- Flexibility: Easily transfer the lease between employers if job changes occur.
How Employers Benefit
- Reduced Administrative Burden: Minimise the hassle of fleet management.
- Attractive Employee Perk: Offer a competitive advantage in employee attraction and retention.
- No Residual Risk: Eliminate concerns about vehicle resale values.
- Financial Efficiency: Keep liabilities off the company’s balance sheet.
Business Use Novated Lease Vehicle Deals
Our Novated Lease Packages include the following;
Fuel / Charging
Experience the Benefits Today
Discover how our Novated Lease Operating Cost Method can enhance your business operations, boost employee satisfaction, and drive substantial tax savings. Take the first step towards a smarter approach to business vehicle management. Contact us now to get started. Your business deserves the advantages of a Novated Lease Operating Cost Method tailored to your needs.
All novated examples are based on 60 months term traveling 20,000kms per annum based upon a $120,000 annual income and being used for 80% business use. Images are for display and illustration purposes only.
Vehicle supply is subject to availability and pricing may change subject to manufacture discretion and could affect the estimated figures list above. Novated leasing or Vehicle Packaging works for the employee by substituting a taxable benefit compared to their current personal scenario. The above figures represent the estimated net impact on your income taking into account the assumed tax and GST savings. All applications are subject to normal credit criteria and assessment along with loan suitability. Terms, conditions, fees and charges may apply. It is best to seek financial advice from an independent specialist in regards to your own personal circumstances before solely relying on these figures. Positive Salary Packaging ABN 71 643 583 171