Novated Lease - Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars
Ford Forum Ford Forum

» Auto Insurance
» Featured Product
ยป Wheel & Tire Center

Go Back   Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Fordforums Community > The Pub
Register Home Forum Active Topics Photo Gallery Auto Loans Insurance Garage Mark Forums Read Auto Escrow

The Pub For General Discussion is the premier Ford Forum on the internet. Registered Users do not see the above ads.
LinkBack Thread Tools Display Modes
Old 05-14-2004, 05:59   #1 (permalink)
Registered User
Join Date: May 2003
Posts: 140
Novated Lease


Looking at buying the missus a car at her work through a novated lease. Got the figures etc and good deal......I think. Unsure of tax implications, benefits etc. Ne1 got websites or references in easy to understand terms how these leases work and things to look out 4 ? Must find a new accountant!!!!!

navy blue is offline   Reply With Quote
Sponsored Links
Old 05-14-2004, 06:34   #2 (permalink)
I love eating chicken
ChickenMan's Avatar
Join Date: Mar 2004
Location: Sunny Melbourne
Posts: 108
Re: Novated Lease

The most important thing to look at is km's travelled per year. If it's below 25,000, you'll get stung for a lot of Fringe Benefit Tax (FBT). If between 25,001 and 40,000, you pay something like 7% of the FBT base value of the car in FBT.

The best way to operate a novated lease is via the logbook method. This is called an operating out well if business km's run at between 75% and 90%. It's all salary packaged, i.e. you pay for the car before you give Jonny 'Bollocks" Howard his tax dollars and you significantly reduce your FBT.

Log on to Car expense deductions from the ATO get more info on this.

I did some calculations recently and I found that by using the logbook method, my FBT was reduced from $486 per month to $126 per month. All other running costs remain the same. I ended up going Commercial Hire Purchase though as this meant I could afford a much better car for the same money. I do 90% business km's.

Speak to an accountant that knows a bit about leasing and they should give you better advice.

Hope this is of some help.

The Big Chook.
ChickenMan is offline   Reply With Quote
Old 05-14-2004, 06:42   #3 (permalink)
Champion Goose
Join Date: Jun 2001
Location: Wavell Heights, Queensland
Age: 33
Posts: 398
Re: Novated Lease

Questions & answers on Novated Leases.
XAHardtop is offline   Reply With Quote
Sponsored Links

  Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Fordforums Community > The Pub

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

Similar Threads
Thread Thread Starter Forum Replies Last Post
U.S.A.:Ford to settle lease probe Stacy94PGT Ford Worldwide News 0 04-02-2004 03:31
Cheap lease spurs Mustang sales Stacy94PGT Ford Mustang Forum 0 06-08-2003 22:04
X-Type Slumps: Jaguar creates ad campaign, lease deals to remedy sputtering sales Stacy94PGT Ford Worldwide News 0 05-12-2003 07:06
Fleet vs Private buyers article RATT The Pub 8 01-31-2003 04:43
Ford Div. seeks more lease deals Stacy94PGT Ford Worldwide News 0 01-27-2003 09:45

Powered by vBadvanced CMPS v3.2.2

All times are GMT -7. The time now is 09:15.

Powered by vBulletin® Copyright ©2000 - 2015, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0
Garage Plus vBulletin Plugins by Drive Thru Online, Inc.