Being able to pay for a vehicle through a novated lease is a big benefit of being employed in the public service. The tax savings can be significant. Consider a hypothetical justice department employee buying a Tesla Model 3 RWD with a purchase price of $66,100.
For this calculation, we’re assuming a five-year lease, a driver in NSW with annual pre-tax salary of $120,000, a car loan interest rate of 7.5% p.a. and car running costs based on 15,000km driven per year. Car running costs include insurance, registration, servicing and tyres. The vehicle in the scenario is eligible for the FBT exemption.
An increasingly popular option for government employees we work with is to novate a zero or low emission vehicles. This is due to the generous fringe benefits tax (FBT) exemption that applies. It means there is $0 FBT to be paid by you or your employer which adds up to thousands of dollars in extra savings.
You can view a full list of the vehicles that are eligible for the FBT exemption to see what options are available.
We can help employees of the Department of Justice and Attorney-General get a great deal on a novated lease. If your department has an existing salary packaging provider, we may still be able to help depending on the situation.
Our expert team works to get highly-competitive quotes for public sector employees looking for a self-managed lease.
"The other companies were quite satisfied in quoting excessive costs and simply failed to follow up in a prompt manner, if at all. NLA, Eddie and their support team have been excellent to deal with and all in all I have had a very easy and painless introduction to novate leasing. I have no hesitation in recommending NLA and Eddie." - Chris Kalmar
We work with Australian government employees, whether you’re in the justice department at federal or state/territory level. We can:
Here are just some of the other government departments whose employees we can help with a novated lease: