Reward the great work of your team with Novated Leasing.
- Who is NovateMyCar?
NovateMyCar is a simplified novated leasing solution tailored for small businesses.
Even if you have just one employee, they can now access the full benefits of a novated lease. Our direct debit arrangement covers everything - from the cost of the car to operating expenses like fuel, servicing, maintenance, insurance, tires, and registration.
At NovateMyCar, we take care of everything. From sourcing the perfect car and negotiating the best price to managing all the ongoing administration and account management, we make it easy for small businesses to offer a premium benefit to their staff.
Who is Remunerator?
Remunerator, our parent company, is one of the largest independent, Australian-owned salary packaging and employee benefits providers. With over 35 years of national experience, we support a wide range of industries, from small and large companies to health, charity, and not-for-profit organizations. Our commitment is to deliver flexible and efficient solutions that enhance employee benefits across the board.
- What is a novated lease?
A novated lease is an ATO approved method involving a three-way agreement between the employee, employer and novated lease provider. Novated leasing allows an employee to pay for their car and its running costs with pre-tax income.
- Where do the savings come from?
Novated lease savings come from 3 areas:
- You receive a credit for the GST on the purchase price (as the employer is deemed to have purchased the car), therefore you automatically save 10% off the vehicle purchase price;
- The employee will also save by receiving a credit for the GST on the running costs of their new car. Running costs include fuel, servicing and maintenance, insurance, registration and tyres; and
- Novated lease repayments are paid for using an employees pre-tax salary. Therefore, there is a saving in income tax paid by the employee and payroll tax saving for the employer.
- How does novated leasing benefit the employer?
There are many benefits associated with novated leasing for employers, including:
- Novated leasing is beneficial to employers by enabling employees to save tax on the purchase of their new car at no cost and no liability to the employer.
- Boost employee morale: Everyone loves work perks! Novated leasing is a great way of rewarding your employees and enhancing their loyalty to your organisation.
- Attract quality employees: By having a novated leasing program, your job offer is more competitive and you become an employer of choice. This incentive provides employee’s with the opportunity to own their dream car without costing you the world.
- Competitive job offer: If you are allowing an employee to bring their novated lease with them, the car will be revalued for FBT to today’s trade in value. Therefore, their existing novated lease will be cheaper in their salary package with you. This gives you an immediate boost in a competitive offering.
- Ongoing support: NovateMyCar do the heavy lifting for you. Our streamline administrative processes means all payments, reporting, customer support and compliance is done by NovateMyCar.
- What role do employers play in each novated lease?
All you need to do is deduct from the employee’s fortnightly/monthly salary is the deductions as advised by NovateMyCar. In addition, you will also need to claim back the GST NovateMyCar reports.
- Who is responsible for the car?
The novated lease is in the employee’s name, therefore there is no risk to your business by offering novated leasing.
If an employee leaves your employment, the car goes with the employee and the remaining lease repayments are the employee’s responsibility. As the vehicle is owned by the employee, it isn’t classified as an asset or liability on your balance sheet.
It will be mandatory that the car has comprehensive car insurance. The employee is responsible for any excess payment, which can also be incorporated into their salary package. As the employer, you will not be left to foot the bill!
- What happens at the end of the lease?
The employee is presented with three options:
- to upgrade to a new car
- extend your existing lease
- or pay out the lease.
NovateMyCar help the employee and guide them through these options when their lease comes to an end.
- Is there any liability for the employer?
The novated lease and car are both in the employee’s name. Therefore, the employee is entirely responsible for the vehicle and lease repayments. There is no additional liability to your organisation for offering novated leasing to your employees.
- Who is entitled to the GST credits?
As the employer, you pass the GST credits or Input Tax Credits (ITCs) back to the employee via their salary packaging account.
NovateMyCar will send the employer (your organisation) a report that shows all of the GST that can be collected and then your organisation puts that on their BAS to return to the ATO.