EASISALARY PRESTIGE NOVATED LEASING

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NOVATED LEASING

Novated leasing is an arrangement between an employee, their employer and a leasing company to salary package the lease charges and running expenses of a car. Traditionally, an employee takes out a finance lease that is then ‘novated’ to their employer. The employer pays the leasing company for the car and deducts the money from the employees gross salary.

Should the employee leave, or the end of the lease is reached, then the lease reverts, or novates, back and becomes the responsibility of the employee. Novating the purchase of a vehicle allows employees to make the most of their take home pay by reducing their income tax and owning the vehicle of their choice for a fraction of the cost.

PRESTIGE NOVATED LEASE

The Prestige Novated Lease is structured to allow employees of eligible entities to access the significant government fleet discounts directly, while also providing all of the other benefits available through a novated lease. The fleet discounts provided by the manufacturers for government agencies are much greater than the typical fleet discounts available under a standard novated lease.

REDUCED INCOME TAXNO GST ON THE PURCHASE PRICEFLEET DISCOUNTED RUNNING COSTS

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The discounts provided under a Prestige Novated Lease are cost neutral to the employer and eligible organisations can make this benefit available to reward their staff. Just like a regular novated lease, a Prestige Novated Lease is fully regulated and supported by the Australian Tax Office. The Prestige Novated Lease is set up so that the vehicle is initially registered in the name of the employer to take advantage of the government discounts, however, under the novation agreement the employer novates all obligations of the lease to the employee - with lease payments being made from a portion of the employee’s pre-tax salary. This has the effect of placing the onus of responsibility on the employee once the novation is signed. The employer is protected at all times by the novation agreement and by indemnities provided by the employee at the time they enter into the lease.

“easisalary will guide you through the finance application process.”

As with standard novated leases, should the employee leave, or the end of the lease term is reached, the full terms of the lease become the responsibility of the employee.The Prestige Novated Lease is available as a fully maintained finance lease on all new cars at manufacturer contract pricing. Running costs will be included in the same way as a standard novated lease; with lease payments including vehicle running costs including maintenance, fuel, roadside assist, tyres, registration and insurance

Eligible Organisations

Salary packaging gives employees the flexibility to maximise their salary and meet their personal and financial needs at no cost to the employer.

Local and State Government and Commonwealth organisationsNot for profit organisations are also now eligible to access manufacturers government prices.

A flow-on benefit is that the reduced acquisition price means the amount of FBT payable by the employee is reduced. This further increases the benefit to them, and in turn, increases competitiveness for the employer by providing an excellent employment attraction and retention strategy.

Benefits

Employers can have peace of mind, as the lease and novation deed are signed prior to delivery of the vehicle, meaning that the responsibility for the vehicle is transferred to the individual from the first day. The employer simply pays the lease, running expenses and FBT from the employee’s salary, just like a traditional novated lease.Importantly, the benefit continues to be cost neutral to the employer.

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Employee Employer

BENEFITS

Reduced fleet administration costs

No requirement to buy and maintain fleet vehicles

No capital required to fund the purchase of new company vehicles

No unwanted vehicle disposal when employees leave

A cost neutral way to improve remuneration and retention

Vehicles remain off balance sheet

The lease moves with employees if an employee leaves the company

Decreased payroll tax and WorkCover expenses

Annual FBT reports supplied for all drivers

Pre and post payroll schedule and tax invoice all supplied by easisalary

Choice of vehicle to suit their needs for their exclusive use

Use their pre-tax dollars to lease and operate a car - and maximise their salary while minimising tax

Save thousands of dollars on the purchase price of the vehicle

Purchase and finance their vehicle at corporate instead of retail rates

Easily transferable if they change employer

No vehicle stamp duty

No GST

Save on FBT

No out of pocket expenses. All ongoing running costs are included in one monthly lease repayment

Get discounted fleet rates on running costs (fuel, servicing, tyres)

Create substantial equity within the vehicle due to the lower purchase price and subsequently lower residual value

Employees benefits from: Employers benefits from

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PRESTIGE NOVATED LEASE INCLUDES

Comprehensive Insurance Fully comprehensive insurance is included for the life of the lease but employees may opt to use their own insurance.

Registration and Third Party Renewal Prestige Novated Leases qualify for a reduced rate of registration and no stamp duty. Annual registration of the vehicle is automatically paid by easifleet on behalf of the owner.

Vehicle Sourcing Government and not for profit employees are eligible for higher level discounts and cost exemptions that are not available to private sector employees.

Fuel Card and Fuel Budget Our easifleet WEX fuel card, allows employees to purchase fuel, oil and car washes. easifleet provide personalised fleet fuel cards to purchase fuel at GST-free discounted prices from most major fuel suppliers.

Servicing and Maintenance easifleet provides hassle free servicing and maintenance. Available across our national supplier network.

Roadside Assistance Our roadside assistance package covers unlimited callouts, free towage within 20 kilometres of town limits, free fuel delivery, free flat battery callout, free flat tyre change, free immobiliser deactivation service, transportation where possible and necessary in the event of an accident and a free vehicle key lock-out service.

All vehicle running costs are bundled into one monthly payment. Only pay for what you use and track your budget via our online reporting portal.

Tyres Discounted tyres are built into the package according to vehicle type and the number of kilometres driven.

The easifleet website provides employees access to easifleet’s online reporting portal. Reports are updated continuously to track fuel and service transaction history, just like online banking.

Online Services

Vehicle Finance Finance provided at easifleet’s competitive corporate rates.

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MITSUBISHI PAJERO SPORT GLX AWD PETROL AUTOMATIC

GROSS ANNUAL SALARY $80,000

TERM OF LEASE 60 MONTHS

ANNUAL KMS 20,000 KMS

AMOUNT FINANCED $37,862

RESIDUAL VALUE $11,716

TAX SAVING $14,279

PURCHASE PRICE SAVING

$12,168TAX SAVING

$14,279TOTAL SAVING

$26,448

Based on the Redbook future valuations, you could also expect to profit a further $13,000 above the residual value when the time comes to sell the vehicle at lease end.

THE PURCHASE SAVING

THE TAX SAVING

RECOMMENDED RETAIL PRESTIGE NOVATED LEASE PURCHASE SAVING

VEHICLE PRICE $42,404 $37,412 $4,992

GST $4,240.40 $0 $4,240.40

LICENCE $800 $450 $350

STAMP DUTY $2,586.90 $0 $2586.09

TOTAL $50,031 $37,862 $12,168

LET’S DO AN EASY COMPARISON

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HYUNDAI TUCSON ELITE AWD PETROL AUTOMATIC

GROSS ANNUAL SALARY $100,000

TERM OF LEASE 60 MONTHS

ANNUAL KMS 20,000 KMS

AMOUNT FINANCED $30,578

RESIDUAL VALUE $9,461

TAX SAVING $13,188

PURCHASE PRICE SAVING

$10,173TAX SAVING

$13,188TOTAL SAVING

$23,361

Based on the Redbook future valuations, you could also expect to profit a further $7,000 above the residual value when the time comes to sell the vehicle at lease end.

THE PURCHASE SAVING

THE TAX SAVING

RECOMMENDED RETAIL PRESTIGE NOVATED LEASE PURCHASE SAVING

VEHICLE PRICE $34,763 $30,218 $4,545

GST $3,476 $0 $3,476

LICENCE $700 $360 $340

STAMP DUTY $1,812 $0 $1,812

TOTAL $40,751 $30,578 $10,173

For further information, contact our

Novated Lease Team. Call 1300 22 44 88

info@easisalary.com.au | easisalary.com.au