Nonvated leases allow for the employee to source a vehicle and have it paid through their pre-tax pay. The lease obligation ultimately vests with the employee but the payments are managed by the employer.
Advantages of nonvated leases:
- Provides incentive for employee
- Removes risk for vehicle i.e if employee leaves they take lease obligation with them
- Choice of car
- Salary packaging service for employee
- No equipment or underlying lease risk
- Packaging and online
- FBT reporting available Income tax savings
- GST savings on car
- Car moves with you to your next employer
- Unrestricted private use
Businesses that use novated leases
Businesses who have a current equipment lease and need a ‘like for like’ replacement.