Vehicle Novation Lease

[DORKO]

Being a tax accountant myself I've read most the stuff written with interest.

One never ring the ATO once. From experience you get one knowledgeable officer out of 5. They have given incorrect advice to my clients on numerous occassions. So call them more than once to verify the previous crap told.

Two call your bloody accountant they make a living trying to find ways to tweak the rules. Having said that the problem you guys have is that if the employer/leasing mob says they won't go for a certain strategy then, despite the fact you've been told what you want to do is legal, your stuffed.

I liked the bit about paying for detailing, very cool, if paid by the employee gets treated as an employee contribution and reduces the FBT involved, so does any running expense paid by the employee.

I treat most utes/vans as exempt as the personal use is incidental, but it would be hard to justify if the person was a desk jockey.

Thanks for your comments mate... Have you got anything that could be worth while for people in a office on a lease? Besides my car detailing to offset FBT.

Dorko

[Beaker]

Hi folks,

I am going to a seminar on Wednesday to see what this is all about and look at Salary Packaging of Cars. Below is a list of points about this "new" offer, which I know nothing about.

The Prestige Novated Leases Offers:

* Choice of vehicle to suit your needs for exclusive use

* Use pre-tax dollars to lease and operate a car

* Save thousands on the purchase price

* Single monthly payments smoothes out vehicle expenses

* Fleet rates on running costs

Does anyone know how much discount there is through this lease option on XR's and FPV's?

Cheers,

Goran

Hi Goran - I'm new to this site - I'm still waiting for my XR6T to arrive (two weeks away hopefully) its a reverse novated lease and the actual purchase price (what you pay FBT on) is $38K.

Not sure about the FPV's are like though - as the reason that you can get such a big discount on the XR6T is that (in my case at least) the lease company buys heaps of them.

If you are looking into it SPEAK TO A FINANCIAL ADVISER - its not worthwhile for everyone as you then have to pay FBT (fringe benefit tax) and the residual. FBT can run as high as $15K a year and the residual on a three year lease is $18K - so by the time you own it outright after three years you can be paying $20K more then if you had just bought it outright to begin with.