Remuneration packaging is the “Buzz Word” for the nineties and one of the greatest aspects of this is the Novated Lease. A Novated Lease takes over the troubles of providing a company car and gives the employee and the employer some surprising benefits.
This is simply an arrangement where the employee leases a car from a finance company then Novates the car (via a Novation Agreement) to the employer who then makes all the lease payments for the duration of employment.
Both the employee and the employer will benefit from this arrangement. The employee can choose any car he wishes, receive fleet discounts, change his car at any time, gain equity in the car and purchase it for the residual. Plus many other benefits.
The employee has his fleet “off balance sheet” which can increase his borrowing ratios, has no more liability of lease payments after the employee leaves and substantial saving in employment and administration costs. Plus many more benefits.
Note – as from June 1998 all novation documents must comply to the Australian Taxation Office as a “Full Novation”. Be assured that we only use finance companies that fully conform with the ATO ruling and have received notification from the Australian Taxation Office that they indeed comply.
Contact this office for a more complete overview.