LEASEPLAN
NOVATED LEASES
AGENDA
 What is a novated lease
 Why Novate?
 Why Novate with LeasePlan?
 Products and Services
 Fringe Benefits Tax (FBT)
 LeasePlan Online
 Motor Vehicle Reports
 SalaryPlan
 Customer Service and Support
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WHAT IS A NOVATED VEHICLE LEASE?
 A three way agreement – LeasePlan, Employee and Employer
 Employee packages the finance and running costs
 Employer agrees to salary deduction and pay LeasePlan
 LeasePlan provides vehicle finance and fleet management
services
WHY NOVATE?
 Reduce taxable income
 GST free vehicle purchase and vehicle running costs
 Your choice of vehicle (new or used* or existing*)
 Lease one or more vehicles**
 The potential to build equity for tax free profit
 Convenience – set and forget fortnightly budget
 * Used vehicles can be financed - age cannot exceed 4 years or 100,000km at
start of lease and 7 years 200,000km at end of lease
 **Subject to employer requirements
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WHY NOVATE WITH LEASEPLAN?
 Customer service – support at every step
Experts to help you
 Novated Lease consultants will call you to provide assistance
 Account Manager on-site fortnighly meetings with UNSW employees
 Volume buying discounts
 LeasePlan Online – real time quotes
 Monthly Motor Vehicle Reports (MVR)
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WHY NOVATE WITH LEASEPLAN?
 Professional maintenance control
 Residual value flexibility (novated finance lease)
 No Hidden Costs:
 No establishment fees
 No start-up document fees
 No upselling of unnecessary items e.g. warranties, tinting
 Fully Open and total disclosure of every element of the novated
lease monthly payment:
 residual value
 interest rate
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PRODUCTS & SERVICES
 Choice of Novated Finance Lease Product
CarPlan Standard or Redundancy Protection Feature
 Vehicle finance – competitive interest rates
Running Costs Included
 Fuel (Caltex fuel card supplied)
 Maintenance/Servicing
 Registration and renewals
 Replacement Tyres
 LeasePlan Total Cover comprehensive insurance
 Roadside Assistance (if applicable)
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FRINGE BENEFITS TAX (FBT)
 Fringe Benefits Tax (FBT) is applied to vehicles that are packaged
 From 1 April 2014, all leases subject to a flat 20% FBT rate
regardless of distance travelled
 Eliminate FBT using the Employee Contribution Method (ECM)
 post tax payment
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EMPLOYEE CONTRIBUTION METHOD (ECM)
 A post-tax contribution is made towards the running cost of your
novated lease to eliminate the FBT liability
 Makes novated leasing more attractive
 Increases the salary packaging advantage and improves the taxeffectiveness
 LeasePlan Online quoting tools will calculate the ECM showing
the impact on your disposable income
 The package cost needs to be split into two parts in the payroll:
 Pre-tax component: becomes the tax free cost of the vehicle
 Post tax component: eliminates/reduces the FBT Liability
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LEASEPLAN ONLINE
 www.leaseplan.com.au
 UNSW customer code: 1000040154
 Employee Driver Registration
 Create and compare multiple quotes
 Complete credit application and vehicle order
 Feel free to contact LeasePlan at any time: 1300 668 572
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LEASEPLAN ONLINE – SALARY ANALYSIS
 Novated lease quotation – salary package analysis
 Indicates tax effectiveness of novated lease
 ECM (pre-tax & post tax payments) vs 100% pre-tax
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MOTOR VEHICLE REPORTS (MVR)
 Issued monthly
 Budgeted costs versus actual expenses
 Opportunity to adjust if required
 MVR history available at LeasePlan Online
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SALARYPLAN’S ROLE
 SalaryPlan is your salary packaging administrator
 They will manage your salary deductions for your LeasePlan
novated lease
 SalaryPlan are their to support you with any queries you have in
regards to the deductions and FBT on your novated lease.
 SalaryPlan has a dedicated team of specialists locally, available to
assist employees with any queries relating to salary packaging of
their novated lease:
 Phone:
 Email:
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1300 790 140
support@salaryplan.com.au
CUSTOMER SERVICE & SUPPORT
 www.leaseplan.com.au
LeasePlan Online customer code: 1000040154
Novated Driver section (supplier finders)
Access news, tips, FAQ’s to make the most of your novated lease
 User Guides and CarPolicy (access via UNSW website:
http://www.facilities.unsw.edu.au/staff-contractors/motor-vehicles
 Novated Leasing Consultants:
 Phone: 1300 668 572
 Email: cservice@leaseplan.com.au
 Visit www.leaseplan.com.au/novate-driver
 Periodical newsletters / Monthly Motor Vehicle Reports
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DISCLAIMER
This presentation should be considered
guidance only.
As personal circumstances vary
LeasePlan recommend
you seek your own independent
financial / taxation advice
regarding novated leasing.
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