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Your Advice To A Soon-to-be New Owner...


Rik_Biel

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  • Bionic Bealie
  • Member
  • Member For: 21y 6m 3d
  • Location: Perth West Oz

I have had my EF from 30,000kms up to 250,000kms now - 8 years.

The plan is to keep it for at least the same amount of time/kilometres.

For FBT purposes I need to do 25,000kms a year, so at that rate 10 years = 250,000kms is what I will be aiming for.

No trade. That is my cash price because I am doing a salary sacrificed novated lease.

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  • SLOJAM, Gone but not forgotten
  • Lifetime Members
  • Member For: 22y 5m 1d
  • Gender: Male
  • Location: Outer east - Melbourne
....For FBT purposes I need to do 25,000kms a year, so at that rate 10 years = 250,000kms is what I will be aiming for.

No trade. That is my cash price because I am doing a salary sacrificed novated lease.

<{POST_SNAPBACK}>

I have a novated lease/salary sacrefice set up. I would actually be better off leasing or CHP after tax and claiming the % usage as a tax deduction as I strugglr to get the 25K P.A. Is your novated lease statutory method or log book method for FBT purposes? I am thru leaseplan and they only do the statutory method (easier for them, more expensive for me)

If statutory, then I suspect you will be in the same boat as me if you dont do much more than 25K P.A. If log book method, you will probab;ly be OK. Have you spoken to your accountant?

Edited by richdave
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  • Bionic Bealie
  • Member
  • Member For: 21y 6m 3d
  • Location: Perth West Oz

LOL - I am an accountant. :)

I'll be working out the FBT on the stat formula method as I will do at least 25,000km per year - I do 500kms a week just to get to and from work every day.

Taxable value based on the stat formula method, less the recipient's contribution (ie all the running costs I will pay myself) means FBT will be nil.

This is not a fully maintained lease, just a finance lease.

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  • SLOJAM, Gone but not forgotten
  • Lifetime Members
  • Member For: 22y 5m 1d
  • Gender: Male
  • Location: Outer east - Melbourne
LOL - I am an accountant. :).....

:ermm: OK....

Mine is a operating lease and all paid pre tax so I get the hit for all the FBT.. :glad:

Do you have any comments regarding a private lease Vs CHP same residual, rate, term??

Waiver - any reply will be considered general comment not "advice"

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  • Bionic Bealie
  • Member
  • Member For: 21y 6m 3d
  • Location: Perth West Oz

Not really.

Much of a muchness from the employee's perspective - as far as I know.

Not an area I work in much.

I probably have a 2-5% business use if that - all my kms are basically home to work and work to home, and they are considered private.

A few mods here and there over the years will ensure that my "recipient's contributions" to the car and it's running will exceed the taxable value.

Why pay FBT when I could spend the same money on the car? :)

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