Novated Leasing: it's a term that can conjure up a lot of images; the big end of town, dodgy tax breaks, people who drive loads of kilometres each year, horror stories of FBT bills...
But guess what - the average person who takes out a Novated Lease earns under $100,000 and drives a car worth $34,5001.
The Novated Lease is a legitimate ATO approved Tax Concession, the number of kilometres you drive doesn't impact your ability to have a Novated Lease, and Novated Leases can be structured so you pay zero FBT.
Right. Now we have those myths out of the way, we want to talk to you about the real facts about a Novated Lease.
While a Novated Lease can feel like a complicated financial product, it is actually a very cool way to pay for your car and its expenses.
We have written a lot about Novated Leasing over the years, if you would like to know more check out Novated Leasing at stratton.
What isn't that cool about Novated Leases is that they are a commercial finance product. That means you, as a consumer, are not covered by the National Consumer Credit Protection Act (NCCPA). The NCCPA ensures consumers understand the financial products they are buying through the disclosure of interest rates and other things that impact the cost of credit like fees and charges.
With a Novated Lease the company has no obligation to tell you:
- The interest rate of the finance you will receive
- The final amount financed
- Any fees and charges associated with the finance
- The cost of any insurances included in the amount financed
- The impact to your take home pay
stratton Are Changing All Of This
Because we feel regulation should reflect the end user, we will endeavour to act as though our Novated Leases are regulated.
With a stratton Novated Lease, we will always tell you exactly what you need to know to understand your lease, and we will work with you until you understand what you are signing up for.
And because we will be disclosing so much information, our quotes are easily comparable, so we know we have to be competitive with our rates and prices, which means you'll be getting a great deal when you get a stratton Novated Lease.
A Pretty Cool Tool
Would you like to see how you can benefit with a stratton Novated Lease?
Explore your savings with our new online quoting tool.
Want Your Own Pay Rise From The Tax Man?
Like the idea of having your car repayments and running costs paid for you, or just want to know more about Novated Leasing? Visit the stratton Novated Leasing website or give our dedicated consultants a call on 1300 131 050.
1. FBT Fact Sheet: https://blog.leaseplusgroup.com.au/2013/07/23/fbt-fact-sheet/