PRESTIGE NOVATED LEASE A SIGNIFICANT BENEFIT FOR EMPLOYEES OF ELIGIBLE ENTITIES

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NOVATED LEASING

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.

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

EASIFLEET is Australia’s leading provider of fleet management and vehicle leasing solutions. We are continually updating our products to enhance the services and benefits we offer our customers.

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Eligible Organisations

The BenefitsThe 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.

“ SAVING THOUSANDS OVERTHE LIFE OF THE LEASE

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.

Local and State Government and Commonwealth organisations

Not 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.

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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BENEFITS

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

Competitive advantage in attracting and retaining employees

Reward employees with an opportunity that is cost neutral

One simple payment from the employee’s salary each payday to cover all costs

No obligation for vehicle if the employee leaves or is terminated

Virtually no administration overheads

Reduced FBT liabilities

Great alternative to employer provided vehicle scheme

Access to easifleet’s salary packaging portal

Employee benefits: Employers benefits:

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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.

Online Services

easifleet.com.au

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.

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.

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.

Vehicle Finance

Finance provided at easifleet’s competitive corporate rates.

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.

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LET’S DO AN EASY COMPARISON

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 $2,586.09

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

MITSUBISHI PAJERO SPORT GLX AWD PETROL AUTOMATIC

THE TAX SAVINGS

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

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THE TAX SAVINGS

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 266 828 | info@easifleet.com.au | easifleet.com.au