Sally's Scenario
Sally is on an annual income of $85,000 and wants to buy a new car that is valued at $38,000 inclusive of GST. Sally’s car will be used for 100% private use. She estimates travelling 15,000 km each year. Sally can either finance the car personally or via a novated lease. As a start, Sally will instantly save $3293 on the GST for the car's purchase - lowering the finance amount. She may also even save further if she takes advantage of the fleet discounts available through Express Fund (up to $3000). Let's take a closer look at Sally's savings:-
Tax Savings - Novated Leasing
Cost of car $38,000
fleet discount $3,000 (approx)
GST $3293
Lower finance amount = $31,707
Sally's Benefit | Upfront | Annual | Over 48 Months |
Income Tax Benefit | $1,313 | $5,252 | |
GST Benefit | $3,126.36 | $403.68 | $4,740.72 |
Novated Benefit | $1,530.91 | $6,123.64 | |
TOTAL BENEFIT | $3,247.59 | $16,116.36 |