How your fully-maintained Novated Lease balance works
Each pay your budgeted contribution amount 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, reimbursing you from this account when you claim and paying those annual expenses — like registration — from here when needed.
We want to provide a bit more detail on how we manage this balance and why it helps to understand how this balance works for your novated lease.
Your money goes in
Contributions, deductions – you may have heard one or both of these terms in your time as a Maxxia customer and essentially they both reference the same thing: how your payroll sends your money to Maxxia.
Your payroll removes part of your GROSS income each pay, you are then taxed on the remaining (lower) GROSS amount and the removed pre-tax portion is sent to Maxxia, along with the post-tax component of your contribution.
The total contribution amount is made up of your novated lease budgets for rego, fuel, maintenance, lease payment etc. This whole contribution amount is added to your Maxxia novated lease balance each pay — think of it like a bank account for your lease.
So there is no separate accounts for your individual novated lease expenses, they all have individual budgets, but they are all paid out of the one account balance.
An important point
It’s important to understand the above concept because all your running costs are paid out of the same balance, overspending or unforeseen claims need to be budgeted for.
For example, if you are consistently overspending on fuel, this will reduce the total remaining amount available for your other budgeted items like rego, insurance and maintenance. This is because they all come from the one account balance.
We constantly monitor your novated lease budget and the contribution amounts to your novated lease account to make sure we arrange for its top-up where necessary — or reduce if required.
Your payments go out
The whole point of putting this money aside is to have it here when you need to pay for stuff. So when the time comes to pay for your registration, insurance, maintenance, etc. it’s a simple process to get these items paid for.
If you like you can pay for these items yourself and then claim the pre-tax amount from Maxxia, this is called a ‘reimbursement’ payment. As you’ve already paid for the item, the reimbursed funds you then receive from us are yours to use as normal.
By far our most popular option is ‘direct’ payments, the Maxxia app and Maxxia Online now allow you to upload unpaid invoices and bills, so we can pay these items on your behalf directly from your novated lease account, easy!
The fuel card has a slightly different process, each month we receive a total of what has been spent by you on fuel, we then pay this amount in one go from your novated lease account balance, there is nothing further you need to do.
Understanding your balance
We hope this has provided some clarity on how we manage your novated lease balance! If you have more questions about novated leasing give us a call for a chat on 1300 123 123 or get in touch with us online.
This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.