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Below are a couple of examples to help you understand how a novated lease can save you thousands. We compare the annual costs of a novated lease to paying for the same car with after-tax salary.
See the reductions in taxable income and tax payable, plus the mix of pre and post tax contributions that eliminate any FBT liability.
With the introduction of FBT exemptions on eligible electric vehicles, the savings can be even greater!
Same car, same price, enjoy big savings with a LeasePlan Novated Lease.
NOTE: ECM (mix of pre and post tax) benefits all except +$180k salaries. Examples do not factor in other pre-tax impacts (e.g. childcare payments, benefits, etc.).
Rev up the savings with a novated lease
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Lisa is novating a Hyundai i30 Hatch
Lisa is a Systems Architect with an IT company, earning $90,000 a year. The Hyundai i30 Hatch suits her low mileage and inner city driving needs. She is leasing for four years at 15,000km/yr. Lisa can save $3,905 per year with a novated lease. That's a savings of over $15,000 over a four year lease term!
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Mark is novating a Mitsubishi Outlander
Mark is an Accountant earning $120,000 a year. The Mitsubishi Outlander is the perfect vehicle for his mix of work and private needs. Mark is leasing for four years at 20,000km/yr. Mark can save $5,253 a year with a LeasePlan Novated Lease. That's a savings of over $21,000 over a four year lease term!
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Novated lease comparison
^Estimated income tax and GST savings over a 4-year novated lease term, compared to a non-packaged personal finance arrangement. Assumptions used to calculate potential savings available upon request. Comparison based on 2024-25 income tax rates. The examples are provided for your information and to illustrate scenarios. The results should not be taken as a substitute for independent professional taxation and financial advice. For the purposes of this example, we have not taken into account the impact of salary sacrificing gross salary for fringe benefits on the calculation of your superannuation guarantee contributions. This calculation also does not take into account the impact of any tax offset to which you may be entitled. All reasonable care has been taken in preparing these materials; however, SG Fleet Group provides no warranties and makes no representation that the information provided is appropriate for your particular circumstances or indicates you should follow a particular course of action.
