Pros of a Novated Lease
- Tax savings through Pre-Income Tax payments
- GST savings on purchase price
- All bundled running costs also Pre-Income Tax and Pre-GST
- Streamlined Budgeting and Convenience
- No Upfront Payment Required
- Fringe benefits tax exempt if leasing a EV or PHEV
- Flexible choices at end of lease
- Able to bring lease to a new employer
Cons of a Novated Lease
- Not all employers allow Novated Leases
- Only available for employees on salary
- Some employers only allow a specific provider
- As they are not loans, extra payments do not have any benefit
- Some leases are still subject to Fringe Benefits Tax
- Novated Leases are subject to as residual
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