Did You Know?
Vehicle salary packaging, when offered by an employer, allows the employee to include the purchase and all associated vehicle operating costs into their salary package through a novated lease. This can reduce the net cost of the vehicle by part paying in pre-tax dollars.
Most types of vehicles ( new or used) can be salary packaged and, within certain guidelines, an employee may even salary package their current vehicle. There are, however, some exclusions. Some types of commercial vehicles, used vehicles beyond a certain age or (new) vehicles exceeding the luxury tax limit may be exempt.
It is important to consider the planned kilometres per year to help maximize tax efficiency and minimise future liabilities.
At the end of a lease the residual value needs to be obtained. This can be done by the following:
- The vehicle may be traded to obtain the residual value.
- The vehicle can be sold privately to obtain the residual value.
- The employee may pay out the residual value and keep the vehicle.
Our new and used vehicle locator service can assist your search for the right vehicle. Our vehicle sale and disposal service can improve the value of a traded vehicle to help get the residual value or more.
For more information on any or all of the above, please contact our friendly and helpful staff.
