LEASING MADE EASY When it comes to Novated Leasing, things shouldn’t be complicated. That’s why at FleetPartners, we package everything up, which makes leasing easy and convenient. Your company can enjoy tax savings, cost savings, reduced administration and your employees will benefit too. They can enjoy the ease of taking up a lease without the fuss. It’s because we do all of the hard work for them. We ensure that the lease makes sense financially, so they can save time and money, whilst enjoying a great vehicle.
HOW DOES IT WORK? Once your company signs up, FleetPartners will take care of the rest for you. You and your employees will benefit with access to myCar – FleetPartners’ online portal. Save time and stay in control, with the convenience of 24/7 access to lease information. Employees can login anytime to complete credit checks, order and process a vehicle – enjoying an end to end paperless Novated Lease experience. During the course of the lease, we will be in touch with administrative reporting like FBT and other relevant information.
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What’s in it for you? Attract and retain valuable staff by adding value to employees’ remuneration packages Massive reduction in administration work Reduce your PAYG liability by reducing the taxable wages of your employees
What’s in it for your employees? Discounts on servicing and maintenance Reducing income tax due to pre-tax deductions No GST on the purchase price of their new car and receive large fleet discounts Convenience of one monthly payment 24/7 Roadside assistance Entitlement to GST savings on fuel, servicing and maintenance
THE TRUTH ABOUT NOVATED LEASES IT WILL BE AN ADMINISTRATIVE BURDEN
REALITY While some employers might perceive that Novated Leasing constitutes an administrative burden, this is not actually the case. In practice, financiers manage the admin. There is initial paperwork, but once a Novated Lease is in operation, there is just one monthly invoice to pay, which can be fully automated.
WE’LL BE LIABLE FOR THE EMPLOYEE’S NOVATED LEASE
REALITY Who picks up the tab if the employee leaves the business? Simple – in this situation the employee remains responsible for making the payments. In other words, a Novated Lease is portable: it ‘belongs’ to the employee. Novated lease cars are not ‘company’ cars. If an employee leaves the company, the car will not be left for you as the employer to deal with, but will become entirely the employee’s responsibility. In most cases they can even transfer the lease to their new employer.
THE LEASE IMPLEMENTATION IS A LOT OF WORK
REALITY It isn’t really. All we need is around an hour with your payroll and finance teams to set everything up. From there, we help you promote the benefit internally through one on one consultations, ongoing special promotions and a variety of ways for your staff to enquire directly with us.
THE COMPANY WILL BE RESPONSIBLE FOR THE FINANCING
REALITY As with any lender, we have credit approval processes to ensure your employees can afford their Novated Lease. Rather than organising a fleet of company cars, a Novated Lease arrangement will allow each employee to take control of their own car. This means it is not a liability to the company nor an administration headache but purely maximising staff benefits and retaining your valuable staff.
LOAN VS. NOVATED LEASE VEHICLE LOAN AT 0%
NOVATED LEASE
Gross annual salary
$80,000.00
$80,000.00
Pre-tax deductions
$0.00
-$5,829.02
Taxable Income
$80,000.00
$74,170.98
Tax (incl. Medicare Levy)
-$19,147.00
-$17,135.99
Post-tax vehicle expenses
-$14,324.81
-$4,882.06
Annual income after tax and vehicle expenses
$46,528.19
$52,152.93
Annual savings with a Novated Lease Assumptions; • Cost of vehicle is $28,812.90 - the Novated Lease employee saves on the GST component which is not financed, however full amount is financed for 0% Loan. • All running costs on 0% loan have applicable GST (i.e. Insurance, fuel and maintenance), employee saves on the GST with the Novated Lease. • Estimated kms 15,000 per annum. • Based on a 3 year term. • Comparison based on 2014-2015 income tax rates. • Novated Lease calculations based on Employer Contribution Method (ECM)
$5,624.74
WHY NOVATE WITH US? EMPLOYER SERVICES Dedicated implementation team to project manage your benefits launch Team to manage your novated changeover Comprehensive staff training for your payroll, finance and HR functions as you have access to an account manager for ongoing support Readily accessible in-house subject matter experts in tax, compliance, communication and education Reporting of data including FBT and GST Nationwide buying power to source competitive pricing on a range of services National coverage, we are on hand whenever you (or your employees) need us State based account managers who understand your business and local issues as well as providing a face to face service
EMPLOYEE SERVICES Education programs through online webinar and seminars, one to one presentation sessions to help your employees make the most of their salary and available benefits A direct 1300 number that directs to a real person, not an automated system Access to myCar, 24/7 Novated Leasing portal Free vehicle sourcing service, large sale nationwide buying power to source competitive pricing for all Novated Leasing customers Independent customer tracking through Net Promoter Score NPS.
1300 88 22 66 fleetpartners.com.au