The concept of novated leasing is central to salary packaging arrangements between an employee and an employer. Under a salary packaging arrangement, an employee agrees to forego a portion of their salary or wages in return for vehicle benefits equal to that amount.

A Novated Lease is a three-way agreement between the Financier, the Employee and the Employer. The Employee leases the vehicle directly from Financier, the Employer agrees to make all payments via a Novated Deed through the Employee's salary packaging.

A fully maintained Novated Lease is an agreement where all of the operating costs (such as lease rental, servicing and maintenance, registration, tyres and insurance) of the motor vehicle are covered by a single monthly payment made by the lessee.

Under a Non-Maintained Novated Lease the lessee is responsible for all maintenance and other running costs of the motor vehicle.

Employee's benefits:

• Allows employee to salary package
• Choice of vehicles
• Choice of terms 12- 60 months
• Enables use of their pre-tax income for vehicle lease and operating expense
• Option to purchase vehicle at end of lease

Employer's benefits:

• Fleet is off the balance sheet
• Increased borrowing ratio
• No vehicle liability if employee leaves
• Taxation benefits on tax deductible expenses
• Value added incentive for employee retention

Novated lease and running costs of the motor vehicle, and fringe benefits tax (if applicable) are deducted from the employee's pre-tax salary, and PAYG is calculated on the reduced salary or wages.

The tax benefit of a novated lease arises from the concessional fringe benefits tax treatment on the vehicle. Depending on the employee's individual financial circumstances, salary packaging a motor vehicle under a novated lease can have the effect of increasing an employee's net disposal income.

If you are happy to proceed with SGE Financial Services, or you may have some questions, the first steps are to organise your quotes and finance pre-approval. Simply, this is done over the telephone taking as little as ten minutes, or alternatively we have supplied links on this website to send your enquiry directly to us.

Once we have established the best finance solution, and you want to proceed, the standard finance process usually follows:

• Application
• Vehicle procurement / sourcing / ordering
• Documentation preparation
• Settlement
• Vehicle Delivery

To give yourself the best chance of getting finance approval, we recommend that you deal with one finance company at a time to avoid unnecessary hits on your credit file. Our quotes and pre- approval service is obligation free and you are not committed to us in any way until you decide to proceed.

To find out more, call 1300 733 990 now!