FAQ: If I have a Novated Lease and change employers, will the July 2013 FBT changes apply to me?
If I have a Novated Lease and change employers, will the July 2013 FBT changes apply to me?
IMPORTANT INFORMATION - With the change of Government on 7 September 2013, the below information is now incorrect. For up-to-date information regarding Novated Leasing, please click here. You can also submit a quick online enquiry and one of our expert finance consultants will be in touch to discuss the smartest options with you.
If you change employers during the terms of your pre-July-2013 Novated Lease contract and choose to re-novate (swap) your lease to your new employer, the July 2013 changes to Fringe Benefits Tax (FBT) for salary-sacrificed and employer-provided vehicles will apply to your lease from the date or the re-novation. This is due to a re-novation being considered a "material" change to your existing lease.
That is, your FBT liability will now be calculated using the operating cost (logbook) method, rather than the statuatory formala method, and for the majority of employees this change will result in an increased cost.