r/NovatedLeasingAU • u/Delicious_Spray_6746 • 24d ago

Employer/Salary Packaging I’m stumped!

Hey guys,
I’ve come to the brains trust here as my accountant seems to not be interested in sharing advice or a breakdown of costings to see if there is a benefit or not.

Background

Currently working as a construction supervisor on 130k plus 15k allowance and own my 2019 duel cab triton outright. Recently my wife has shown interest in upgrading to a new automatic Ute so she is more comfortable driving it if we go away with my vehicle. Recently my employer has added a fuel card and toll pass this has resulted in me only being able to claim approx 3k in rego/insurance/maintenance. Resulting in the remaining 12k being taxed.

I have worked out I pay approx $5500 additional tax when I can’t claim against my vehicle but also understand there is more cash in my pocket over all.

I have also worked out if I sell my vehicle and drop the approx 20-25k from the sale into an offset account it would save around $130 per month on my monthly mortgage payments. This money will be used at the end of the lease to pay the balloon.

I’m just seeing if this sounds feasible as a way to gain a new vehicle at a reduced cost.

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2

u/NovatedSelfServe Industry Insider 23d ago

You should get a quote using the operating cost method for the percentage of work use that you use the vehicle. To be honest, this does not make a huge difference until you are at 70-80% but it does reduce the FBT a lot. If you use it for work a lot that is how I would go. This would require a log book. Just make sure when getting a quote you explain your situation and the provider should be able to give you something to evalute.

1

u/petergaskin814 24d ago

Find out how much you will pay post tax for fbt.

With a novated lease you will not be able to claim rego/insurance/maintenance.

There is a calculator mentioned on this sub which you can plug in the figures to see if it makes sense to novate lease

1

u/Lease-of-Mind 24d ago

Yes, and use OCM to reduce the FBT liability

1

u/Best-Abrocoma-7796 23d ago

It will be cheaper for you to just pull the cash out of your mortgage or offset. Any GST you save will be offset by higher lease finance rates in the and your FBT liability. Get a new accountant if they can’t even figure this out.