What Is Novated Leasing?
A novated lease is a three-way car finance agreement between you, your employer and Alliance Leasing. It enables to you to bundle all your car running costs into one regular ongoing tax effective payment. By doing this you can reduce your taxable income, pay less tax and receive significantly more money in your pocket.
How It Works
A Novated Lease is a three-way car finance agreement between you, Queensland Government and Alliance Leasing.
It enables you to bundle all your car running costs into one regular, ongoing, tax-effective payment.
By doing this, you can reduce your taxable income, pay less tax and receive significantly more money in your pocket.
As an approved Panel Member, Alliance Leasing can now provide you excellent service via your Salary Packaging Administrator.
Accelerate Your Savings
In a Novated Lease there are many ways Alliance Leasing can help you save.
Alliance Leasing have no management fees, no entry fees, no exit fees, no procurement fees.
Fleet discounts on servicing and fuel.
No GST on the purchase price and running costs of the car.
Complimentary access to our vehicle maintenance program to save on servicing and tyres.
Choose your own car, no deposit to pay.
Part of the running costs of your car and lease repayments are taken out of your income before it is taxed — ultimately reducing the amount of income tax you have to pay.
How to Get Started?
Select your car
You can choose any vehicle you like! New, used or even the car you currently own.
We’ll calculate the savings
We’ll prepare a detailed quote based on your individual circumstances.
Complete our simple finance application
It doesn’t get much easier than this, we can have your finance approved within a matter of hours.
Drive away in your new vehicle
Drive away in your fully maintained vehicle with complete peace of mind.
The Savings
A novated lease is all about savings and convenience, lets run through some of the great savings available to you:
- No deposit is required to secure your dream car
- Save 10% of the purchase price as you do not pay GST
- Save a further 10% on your running costs as the GST is paid by your employer
- Generous fleet discounts
- Fleet discounts on fuel, servicing, tyres and labour
Convenience
- Your car can be used for 100% private use
- Your choice of fuel cards with Shell, BP, Caltex and Motorpass
- All servicing and maintenance costs are billed directly to Alliance Leasing
- Peace of mind that all your vehicle costs are packaged into one simple payment
- No logbooks required
- No requirement to travel a set amount of kilometres
What is FBT and how does it effect my lease?
FBT (Fringe Benefits Tax) is a charge incurred by your employer associated with the provision of benefits which are additional to standard salary. Novated leases are considered such a benefit.
To alleviate any FBT liability to your employer, Alliance Leasing will structure your lease using the employee contribution method (ECM). ECM also known as a post-tax deduction means that a portion of your lease costs are collected from your salary after PAYG income tax is applied. This post tax deduction offsets any potential FBT cost to your employer and makes the whole concept possible.The post-tax deduction is not an additional charge or cost. It is simply a portion of your overall lease payment that is collected post tax, the remainder is collected pre-tax!
What happens at the end of the lease?
There are several options available to you at the end of the lease, Alliance Leasing will contact you six and three months prior to the end of your lease to discuss which options works best for you.
- Sell or trade-in your car and lease a new one. Any surplus funds achieved from the sale are yours, tax free
- Refinance the residual amount and continue leasing the same car
Alliance Leasing can assist with the disposal of your current vehicle. Through our dealer network we can source competitive trade in valuations and save you the hassle of privately listing your car.
