FAQ: What effect do the changes made to Novated Leasing as part of the 2011 Federal Budget have?
What effect do the changes made to Novated Leasing as part of the 2011 Federal Budget have?
The changes to the Statutory Formula Method of FBT calculation do not affect existing contracts; the previous FBT rates will apply for the remainder of the existing contract.
People entering into new Novated Lease contracts after May 10, 2011 will find that drivers who travel less than 15,000km annually will receive greater tax benefits from their Novated Lease, while drivers travelling more than 25,000km annually will find they receive a smaller tax benefit than in previous years. Drivers who travel between 15,000km and 25,000km annually will find that they receive the same tax benefit as previously.
Please note that this information is of a general nature only. You should consult an accountant to obtain information specific to your situation.
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What changes were made to Novated Leases in May 2011, as part of the Federal Budget?
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