Novated leasing offers you big tax savings

1. Choose the car you want

MSRP (Manufacturer Suggested Retail Price):

2. Enter your information

Annual Salary

Annual KMS:

How are your savings calculated?

Lease calculations: post-tax

A percentage of the base value of the car you are leasing will be paid using post-tax dollars – that is, your regular salary after-tax.

The percentage figure is known as the statutory percentage and ranges from 10% to 20% depending on the year and the distance you travel in that year.

See the table below to determine what bracket you fall into.

You'll need to estimate how many kilometres you expect to travel at the beginning of the FBT year. The FBT year begins 1 April and ends 31 March.

Distance travelled per FBT year	Statutory Percentage (% of car's base value required from post-tax salary)
	From 11 May 2011	From 1 April 2012	From 1 April 2013	From 1 April 2014
Less than 25,000 kms	20%	20%	20%	20%
25,000 - 40,000 kms	14%	17%	20%	20%
Over 40,000 kms	10%	13%	17%	20%

Note: The government is currently phasing out the use of Statutory Percentages based on travel, and a flat rate of 20% will apply from 1 April 2014 regardless of the distance travelled.

Lease calculations: taxable value of vehicle

Example: if the base value of your car is $25,000 and you estimate to travel 20,000 kilometres in the FBT year, the taxable value of the vehicle is:

$25,000 (base value) x 20% (statutory percentage) = $5,000

Lease calculations: pre-tax and running costs

Let's say that a $25,000 vehicle on a 3 year lease will cost you $12,000 per annum ($7,200 for lease payments. $3,000 for fuel, $1,080 for comprehensive insurance, $600 for service & maintenance, and $120 for car wash/car care products).

Lease Payments and All Running Costs: $12,000
Minus Taxable Value: $5,000 (amount comes out of your after-tax salary)
Pre-Tax: $7,000 (amount comes out of your pre-tax salary)

RRP of Commodore SV6	$43,790
Smartsalary fleet discount	$9,122
Tax savings per annum	$3,009
Overall savings across 4 years	$21,158**

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Am I eligible?

Arranging your novated lease takes 4 simple steps:

How much could I save?

How are your savings calculated?

Lease calculations: post-tax

Lease calculations: taxable value of vehicle

Lease calculations: pre-tax and running costs

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