Novated Lease.

[Terebro]

Law hey?

damn

I'll have to ask the question.

If they say yes to a new towball then surely... a mod is a mod! :D

[Macktheknife]

I'm with Prosperion who go through Esanda Fleet Partners.

Like you I have a fully maintained lease.

The only problems I've had with them is getting the paper work through on time when I got the car. Because I had to call Prosperion, they had to call Esanda, then they had to call me back. Became a nightmare. Other than that, estimates were spot on, and smooth sailing.

I'm with Prosperion as well. Mods can be done under some circumstances. My XEDE was factored in to my lease so it cost me nothing out of pocket. However I did find them pretty slack in answering corrospondance. PM sent on a contact.

Mack.

[TBO240]

is it posible to get a new typhoon or gt for under $57000 on a novated lease and avoid the luxury vehicle tax and how much tax do you pay if you go over the $57000 threshold

[Mondie]

Not sure l fully understand your question but the price on the GT and Typhoon does include LCT. Any options you take need to have the 25% LCT added to the Ford published price though. You dont pay both LCT and GST, LCT only once above the threshold. Hope that helps

[Orrie]

Hey sykes, I can help you with any enquire you may have in relation to this topic as I am a accountant (speciality is tax).

I quite ofter do calculations for other people at work, ive got salary sacrifice calculation software at work too. I can do a calculation for you if you want. I wont try to charge you

When considering salary packaging the following factors need to be taken into account:-

- Salary (including any other income or tax deductions which affect your assessable income for your income tax return)

- Fringe Benefits Tax, related to this calculation is the cost of the vehicle, the annual Klms or total running costs & business percentage (as proven in a vehicle log book)

- Whether you can claim a tax deduction for the car anyway (ie. if you have a logbook this will be the case)

- Lease term (as this will affect the monthly repayments & residual value)

- Also need to take into account affect on child care payments and Centerlink payments if applicable.

An important assumption with salary packaging is that you are going to buy the car anyway, as this is the comparison basis for the calculation, for example you are not simply buying the car to save some tax & get expenses GST-free.

I am salary packing under a novated lease for my BAXR6T ute and is FBT-free due to some lesser know exemptions (and is therefore subject to certain restrictions on usuage). So after-tax cost to me is very cheap.

Any questions please feel free to ask. Im very knowledgeable on the subject.

Cheers,

Ford Grunt (Ben).

<{POST_SNAPBACK}>

Hi Ben,

thanks for all the good oil on the novated leasing/FBT thing. I have a question for you. I will be novating 2 cars within the next 2 months. Both over 12 months, 25000k's/yr. This will bring my gross salary down considerably. My question, does novating increase my eligibility for the Family Tax Benefit A and B or is this canceled out based on FBT values. Not sure how it works in this regard and other similar type allowances etc.

Any info appreciated.

[Falchoon]

You dont pay both LCT and GST, LCT only once above the threshold.

Not sure if that is correct. See quote below from ATO website.

Luxury car tax applies to luxury cars in addition to any GST payable on the cars and uses the same framework as the GST.

Link to LCT info on ATO website

Buy a Tornado or Pursuit and you don't pay LCT!

Best to buy accessories such as tint, headlamp protectors etc after you take delivery of the car otherwise you pay 25% more for them once the value of the vehicle exceeds $55,134.

[Antisocial]

You dont pay both LCT and GST, LCT only once above the threshold.

Not sure if that is correct. See quote below from ATO website.

Luxury car tax applies to luxury cars in addition to any GST payable on the cars and uses the same framework as the GST.

Link to LCT info on ATO website

Buy a Tornado or Pursuit and you don't pay LCT!

Best to buy accessories such as tint, headlamp protectors etc after you take delivery of the car otherwise you pay 25% more for them once the value of the vehicle exceeds $55,134.

<{POST_SNAPBACK}>

Poor Ross, as always behind the times....

The luxury car tax threshold for the 2000-2001 financial year is $55 134.

....for the 2004-2005 financial year $57,009

[OwnaXR6T]

Luxury car tax is build into the price when its sold. so there are no hidden costs unless you get options on top.

The only catch is you can't claim for depreciation until it goes under 57k.

Communists I tell you. Hit high tax payers with more tax just because they work hard!!!

[Ford Grunt]

Hi Ben,

thanks for all the good oil on the novated leasing/FBT thing. I have a question for you. I will be novating 2 cars within the next 2 months. Both over 12 months, 25000k's/yr. This will bring my gross salary down considerably. My question, does novating increase my eligibility for the Family Tax Benefit A and B or is this canceled out based on FBT values. Not sure how it works in this regard and other similar type allowances etc.

Any info appreciated.

Hey mate,

The short answer is maybe

If you reduce your salary by salary packaging you may still windup with a Reportable Fringe Benefit amount with will be included in determining eligiability for Family Tax Benefit (FTB) in which case it may not be any better off in fact you could be worse off it depends on the FBT on the vehicle which in turn becomes your Reportable Fringe Benefit amount.

I'll explain with an example

Based on your example about your looking at packaging two cars with more 25,000 klms say they cost $20,000 & $25,000 each (incl GST).

FBT on the statutory method would be $2,200 + $2,750 ($20,000 x 11% + $25,000 x 11%) respectively totally $4,950 per annum

this amount of $4,950 is the amount used for the FTB, so if your salary sacrifice is more than this amount you will be infront.

The amount of $4,950 is grossed up by 1.9417 to get $9,611 which is the Reportable Fringe Benefit which would then show on your group certificate.

Further, to understand how you get a Reportable Fringe Benefit amount which affects your FTB you need to know how you get a Reportable Fringe Benefit. This is when you have a fringe benefit which after "employee contributions" (either cash or unreimburse running expenses) is left with a taxable value. In the example above the taxable value is $4,950, this could have been reduced by employee contributions to as low as nil. The lower the taxable value the lower the impact on FTB.

If you have no taxable value you have no Reportable Fringe Benefit and therefore would have no FTB impact.

For example, in my case I have a "exempt vehicle" therefore there is no taxable value for FBT and therefore no impact on FTB due to FBT in fact my gross salary is less due to salary sacrificing

Hope this helps.

Cheer,

Ford Grunt (Ben)

[Bad Apples]

Hi Ford Grunt.

I'm about to novate a ute, but was planning to sell the old one. Now if I keep the old one for the first year of the lease and claim 0% FBT, do you think that I would be able to change that when I sell the old one and start using the leased vehicle for personal use other than travelling to and from work?

Cheers.