Does a Novated Lease save me money on GST?
Buying a car can be a daunting process. There’s the running around, haggling and, for many people, the fear of paying too much. You want to get a great car deal and, at Maxxia, we want to show how you can.
One way you could get into a car for less is through novated leasing. A workplace benefit offered by many employers, salary packaging a car through a novated lease could save you on tax by paying your registration, insurance, fuel and other running costs with pre-tax money.
But let’s take a look at how you could benefit even more from getting a novated lease.
GST could be a thing of the past.
With Maxxia’s buying power from over 500 dealers Australia-wide, we could help get you a great deal on the car you want as well as removing the GST component (well, up to the GST-savings threshold of $5,234.64, anyway). So you could take advantage of getting your new wheels at a discounted price while also not paying GST.
But it doesn’t stop there. You also don’t pay GST on the running costs associated with that car throughout your lease. That means that when you fill up with fuel, insure or service your car (or even get it cleaned), you could be eligible to claim the GST paid back from your employer. Plus, there is no threshold for GST claimable on the running costs, either.
Basically, all you need to do is submit your tax invoices for us to pay directly to the supplier on your behalf, or reimburse you if you have already paid for the expense. The tax invoice will detail the amount of GST applicable for the transaction and we submit that to your employer. Your employer then requests for that GST component to be refunded to them by the ATO, which could then be passed back to you (known as Input Tax Credits or ITCs). Have a chat with your employer to find out what they do with your ITCs.
So get a new car, potential tax savings and a great price with a novated lease through Maxxia. Get in touch with us online or call us on 1300 123 123 to find out how you could benefit from a novated lease.
This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.