Do we all know what does “Novated Lease” mean? Many might not….Right? Do not worry. Let me explain it a bit. It is a kind of lease of motor vehicle, which is quite common mostly in Australia. The United Kingdom even has got the prevalence of such lease as well. This actually allows a company to lease one motor driven vehicle on behalf of one of its employees with the lease’s responsibility lying with the lease payments as well as the employee that are being made from the pre-tax income of the employee.
To put it in simpler words, it is a financial agreement, which is made between an employer, his or her full-time employee and a financier or a car leasing company. The lease permits the vehicle or the car in concern to be obtained on the basis of lease for the unrestricted use of a client, with payments made from the salary of an employee. Now, in turn, the concerned employee is able to enjoy the following benefits:
- He or she is able to drive their own car for both leisure and business purpose
- It helps in saving income tax since, payments are salary based
- Enjoying Fringe Tax Benefits or FTB
- GST savings can be made on car’s purchase price
Because of its huge popularity in Australia, the country has got many such companies based in there, which provides different kinds of novated lease to the residents. And since, the present world is mostly dominated by the internet service, the country, over a period of time, has witnessed the emergence of many online lease providers, who makes your job even easier. As we all know, it is easiest and worthy to depend on the World Wide Web to carry on these tasks. 1alp is one of the renowned websites in Australia, who offers a range of cost effective leasing. Their novated lease solutions are famous all over Australia. They believe that each and every employee needs to consider such a lease while purchasing a vehicle. Thus, they offer an assortment of salary packages in terms of novated lease.
The varied maintained packages that can benefit an Australian employee include diverse things like lease payments, registration, fuel, insurance, roadside assistance, maintenance, tyres and many more. Apart from these, one can even get benefitted out of their non-maintained financial packages. Hence, an employee will have a range of options to choose from. And since, they provide these services online, it has become even easier to choose one among all.
Another noteworthy service of 1alp.com.au is their Novated Lease Calculator, which is used for offering an employee with the detailed information about a proposal that includes the costs of leasing as well as the incorporation of the running costs within the tax benefit. All one need to do is just enter a few necessary details and the site will provide him or her with a list of novated leases, which are on offer at that moment. Thus, one can go through the different leases and choose the most appropriate one according to their needs.
Olivia Kane is a freelance content writer. She has got sound knowledge in novated lease and thus, is presently writing for 1alp