No matter how much you earn, you could benefit from novated leasing due to the potential tax savings. (For example, an employee earning $90,000 who takes out a novated lease on a car worth $34,000 and drives 15,000 kilometres annually, could reduce their taxable income by almost $2,572 a year.)

Additionally, you don’t pay GST on the price of a new car acquired through a dealership on a fully-maintained lease, potentially saving you thousands, as well as GST on some of your running costs.

*Assumptions:  The estimated potential tax benefit is exclusive of GST, and based on an employee earning $90,000 a year, on a $34,000 vehicle under a 5-year lease, with an annual distance travelled of 15,000kms and a 28.13% residual value. Calculations are based on the assumption that you would have paid for the lease from your post-tax salary (as opposed to salary packaging those payments from your pre-tax salary or a combination of your pre and post-tax salary). Included are car payments and estimated annual operating costs (GST exclusive) of fuel, maintenance, tyres, registration and comprehensive insurance. An average administration fee and the return of associated Input Tax Credits (ITCs) is also included in the example. The actual return of ITCs and per annum administration fee that applies to you may vary depending on your employer and may alter the calculation. GST of 1/11th is payable on your Employee Contribution Method (ECM) contributions. State Stamp Duty rates apply. PAYG tax rates effective 1 July 2024 have been used. The estimated annual benefit will vary depending upon salary, employment