What is novated

Keep in mind that if you change jobs or stop working, the responsibility for making the repayments remains with you. You may be able to transfer your lease to your new employer, but you may also have to take over the repayments no longer pre-tax.

When you have a car under a novated lease with your employer, the Federal Government considers it to be a fringe benefit. Fringe benefits tax may then apply. While employers are liable to pay fringe benefits tax in the case of novated leases, this cost is generally passed on to you from your pre-tax salary. Calculate now. The information on this page is for general information purposes only and has been prepared without considering your objectives, financial situation or needs.

You should, before acting on the information, consider its appropriateness to your circumstances. Fees, charges and conditions apply. Full terms and conditions will be provided with any agreement upon credit approval. Taxation considerations are general and based on present taxation laws and may be subject to change. Employee chooses a car, and a novated lease arrangement is set up between the employee, employer and TFM.

Employee gets the car they want, saving on tax and running costs including car price, fuel, maintenance and tyre purchases. You are using an old browser that may not function as expected. For a better, safer browsing experience, please upgrade your browser.

Novated Lease Toggle navigation Novated Lease. Novated Calculator What is a Novated Lease? What is a Novated Lease? How does it work? Lease set up Employee chooses a car, and a novated lease arrangement is set up between the employee, employer and TFM. Payments made Employer makes payments to TFM from the employee's salary.

Employee saves Employee gets the car they want, saving on tax and running costs including car price, fuel, maintenance and tyre purchases. Cashless motoring Employee enjoys the convenience of cashless motoring. Is a novated lease right for you? In terms of budgeting for your car expenses, a novated lease can be a great help. A novated lease with Maxxia Novated leasing can seem complex, but if you work with a company like Maxxia, we can handle much of the complexity for you.

Prev All Articles Next. Related articles. The Residual Balloon Payment Explained. Handy Hints. Novated Leasing. Salary Packaging. Full Name. Popular tags. Car expenses. Tax time. Finance options. Salary package a car. Maxxia App. March Tax savings. Maxxia Marketplace. Car lease. Fully maintained. Workplace benefits. Maxxia Online. Reduced taxable income. Employee benefits. Maxxia Wallet. Salary sacrifice. Tax benefits. Pre-tax salary.