Can I change the amount that Maxxia requests from my pay for my Novated Lease?
To answer this question we need to think of the amount you contribute to your novated lease each pay as two separate parts.
The first part is the non-negotiable stuff, like your lease payment and administration fee. This part of your contribution cannot be changed and will remain a regular amount throughout the term of your novated lease.
The second part is the registration, insurance, tyres, fuel and other running costs. This part is more flexible; technically we don’t have to request funds for these items at all and you would just pay for them yourself (like you would without a novated lease) — but you would not get any tax savings from them if you did.
Example – You enter a raffle and win a new set of car tyres! At this point you would probably stop putting money aside for tyres with Maxxia for the next year and look at starting your budget again at a later date, as this is a cost you no longer have to worry about.
When Maxxia requests funds from your pay for these items, the money is contributed from your before-tax pay and you are then taxed on the remaining — lower — amount. The more we request from your pay, the smaller the amount you could be taxed on!
So, we set up these annual amounts and estimates so you not only enjoy the benefit of having your running costs budgeted for, you also access the best possible potential tax savings as well.
Where does the money go?
Each pay your contribution is added to your Maxxia novated lease account — think of it like a bank account for your lease.
Maxxia makes your regular lease payments from this account, reimburses you from this account when you claim and pays those annual expenses — like registration — from here when needed.
This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.