There are many complicated explanations provided on how a Novated Lease works. However, it really is a simple concept. You (the employee) take a lease with Mylease and then your employer deducts the money from your salary and makes the payments on your behalf.
With the employer making payments on your behalf, the car is treated just like a company car and your employer will receive, and pass on to you, all the tax deductions that you would not ordinarily be entitled to.
Once the lease is setup and all costs are known, your employer will make the payments including GST on your behalf, and then claim the GST back from the tax office, so right up front you will be saving all the GST charges. On top of that some or all of the money that is deducted from your salary by your employer will come from your pre-tax earnings which means a saving on your income tax as well.
Mylease will help setup the lease for you and provide you with a monthly budget / estimate of all the likely costs associated with running the car e.g.: Fuel, Maintenance, Tyres, Registration, Comprehensive Insurance and Roadside Assistance.
With “State of the Art” fleet management systems Mylease will continue to provide you with a range of reporting and cost saving measures for the operation of your car. Mylease will supply fuel cards and will pay all of your expenses as they occur so you will always have a full tank of fuel with minimal time and effort required for you to manage your car.
