richdave

I did work out that if you depreciate the car at the maximum rate of 22% over 3 years and have running costs of about $3500 pa, and you use it 80% for business, then you would have a net tax reduction of about $8.5k over 3 years. Not sure if this is valid but hows this for logic: $3.5K x 3 = $10.5K + $26k depreciation = $36.5K over 3 years $36.5k - $8.5k tax reduction = $28K net cost over 3 years. Then add the LOST interest on the $50k which would be $3850 at 5% compound over 3 years net paying 50% tax on the interest. Brings the total cost to $31850. If you lease the same car it costs $39K aftre tax. Then deduct the interest that you have earned on your $50k of $3850. Brings the net cost to $35150. If what I have done here is valid, then it seems that If you are using the car for business purposes it is cheaper to buy the car out right and write off the running exp on your PAYE tax. The saving would be about $3.3K over the 3 years If on the other hand you cannot write the costs off against your tax. The total cost to you would be $36.5K plus the lost interest of $3850 Brings the net cost to $40350 which would make the novated lease cheaper but not by much...only about $2.5k over the 3 years. Most folks can't pay cash for a $50k car so the benefits of novated/salary sacrifice are much more pronounced when comparing a private lease/loan paid solely from post tax earnings. More like $9000 over 3 years based on the assumptions used above. You need someone smarter than me to work out the detail on this I'm afraid.....did I mention I'm no accountant... I know.... see a REAL accountant... :lol: :lol: I have a headache now....

You dont need to be on 200K to benefit from a novated lease.... On a 5 year lease the car is usually written down to 25% of the value so unless you were purchasing a $100k car, a $25k residual seems wrong.

Your rationale seems sound and your accountans advice suprises me....but then I'm no accountant. $75K pre tax over 3 years = about $39k post tax. It really depends on if the car is a "perk" or used for business. IMO If it's a perk then you are better of novating since you get tax benefits, where as if you buy the car you cannot write off any of the costs or depreciation to offset PAYE tax. Remember it will cost you about $3500pa to run the car post tax (based on 25k pa) Remember too that your $50K car will be worth about $24k at 22% depreciation (max ATO rate IIRC) over 3 years so you have LOST $26K which was paid POST tax. Also remember if you buy the car you pay GST on it and the running costs, if you novate the car is at least 10% cheaper and all running costs are GST free on top of the fact it is all paid out of pre tax dollars. I'll try and do a few calcs and see the effect of deprectaiting the car and claiming 80% as business use for a comparison. Check out this thread too Finance, Loans vs leases and novated leases

if not radar, what then? Also in VIC there is only ever one operator in the mobile tax vans.

I thought I said that.......but I didnt call it "the contribution method"

I reckon he edited the poll...LOL

Iv'e never seen a single ad that was not from a sponsor....??

now now...no need to be like that. Just post the dyno sheet and shut them up.....

Not for 50,000 volts it aint

OK what did you pay for the CAPA kit and then to "upgrade" to the unichip bits?

The Territory would be "de tuned" by comparisson as it is noticably heavier that the "T". Also I thought the "T" was already "tuned" for PULP in that it can run on PULP and the ECU adapts to the higher octane

only thru the AUX input at this time. Perhaps BA series II may have it as standard??

Congrats looks great. WOW on "P"'s too. I had a 240K.... :sook: IMO dont bother with the phone presenter. This is how I mounted the phone and am very happy with it. The flip out thingy is flimsy and you need the console almost empty to flip the phone out of sight. I have the auto lights on. All it does is turn the head lights on as soon as the ignition is ON. If the foggies are on when you last switched off they come on too....that's it. I'm actually gonna rip it out when I can be bothered.

that's about $5k off RRP excluding delivery and ORC.

Dags, thanks I'd forgotten those threads. Hopefully they help Paranormal You sure about the no FBT? If your employer is making a pre tax contribution OR you are salary sacrificing to pay the lease, then I thought there was still a FBT liabilty as you are still getting a "fringe benefit" I'd expect that the FBT base cost would be calculated on the depreciated price of the car. There would be no GST input credit though since the GST was payable by you not the employer at the start of the initial lease. There are still good tax effective savings for you and the running costs are still GST free. BTW I changed employers and swapped my novated lease over after 8 months and the base cost of the car dropped from $41000 to $37000, saving me about $60 per month on FBT liability. Hmmm... Just re-read you post, am I right in asuming you are paying for the fuel and maintenance post tax to offset the FBT? If so you may be better off having the running costs deducted pre tax AND the FBT liability also deducted pre tax depending on your income. Wheres an accountant when you need one... :lol: :lol: My last employer took the FBT liability post tax where as my new employer takes the (reduced) FBT pre tax, effectively saving me $300/month post tax

not sure I believe the first one...but funny none the less. the second sorry but just plain dumb.....showing my age??

the difference could be explained by a few things including interest rates, fees/charges. but I'm guessing the main reason the lease cost went up when you transfrred to a novate lease was that now the car cost included the GST which also had to be financed.

1. If you are quoting accurately, the accountant is a tosser. There would be NO Capital Gains Tax on such an arrangement as there would be NO capital GAIN. 2. If they said (meant) FBT (fringe benefits tax) then there would be a liability but you can pay that from either pre OR post tax depending on your income (you need independant advice here). The employer DOES NOT have to pay this on a novated lease although some do. The amount is actually linked to km's travelled eg under 25K pa is 22% of base cost of car, over 25k and it is 11% over 40k and it is 7% IIRC. Also the accountant forgot to mention that if the lease amount is deducted PRE tax than the salary they pay you is LESS for pay roll tax purposes so your employer actually SAVES money to by allowing you to novate. Clearly your boss needs a better accountant, and unfortunately you were mis lead. If you are using your car for work the best you can do is write off the % of bussines use on tax now. Oh and some other benefits Car is purchased GST free as employer claims it as a input credit. Running costs are the same - GST free as the employer also gets an input credit on any tax paid. A personal loan on the other hand means you have to keep detailed records of costs, a log book for at least 12 weeks to determine business usage vs private use. then you claim depreciation (at 22% pa IIRC) and the % business of all running cost inc interest as a tax deduction. You still pay GST on the car and all operating exp though. A private lease is similar in that you claim the % cost of the lease and operating exp as a tax deduction. again here you also pay GST on the car and all operating exp. The ONLY advantage I know of with these arrangements over the Novate option is that when you buy the car at the end you don't pay GST on the residual (or balloon) value. the lease payment is fully deductable as it is effectively a rental payment, whereas only the interest component of the loan payments are. BTW - I'm no accountant but I do have novate lease with ALL costs deducted PRE tax so I believe I am correct in what I say here.

According to the July 2003 Motor Mag XR6T 2.71sec 0-60, 5.91sec 0-100, 400m 14.14sec @ 162.6km/h

According to the July 2003 Motor Mag XR6T 2.71sec 0-60, 5.91sec 0-100, 400m 14.14sec @ 162.6km/h

28000km and still like new...well almost

11.4 and swmbo 14.9.

:lol: Dig me up

$700pa thru LeasePlan.

Bugger, will be in cold snowy -20degC Minnesota training then...BRRR