Novated Lease Watch

Fully Maintained Novated Leasing

A fully maintained novated lease is nearly the same as a standard novated lease except all the motor vehicle running expenses such as petrol, rego, car insurance, maintenance are included in the monthly lease payment.

How does a fully maintained novated lease work?

Under a fully maintained novated lease, a fleet management company (Aussie Fleet Management) packages all the running expenses up into one monthly car lease payment. The fleet management company will collect the monthly car lease payment and distribute the funds to the third party providers on your behalf. (ie fuel provider, maintenance provider)

Fully maintained novated lease features

• Fully maintained novated lease terms range from 1 to 5 years
• One car lease payment will cover all running expenses and the lease payment
• The Interest Rate is fixed for the term of the fully maintained novated lease agreement.
• Fully maintained novated lease repayments are fixed for the term.
• GST on the purchase price of the vehicle is claimed back by the finance provider on your behalf. This lowers the amount financed to the purchase price minus GST
• Subject to credit approval, we will finance 100% of the purchase price
• A novated lease is portable and may be re-novated from one employer to another (depending on employer acceptance).
• Choice -you can choose the car that best suits your needs

Fully maintained novated lease tax implications

GST is charged on the monthly fully maintained novated lease payment and as long as the employer is registered for GST, they can claim this back on their BAS.

GST is also charged on the residual value on the fully maintained novated lease, and as the Novation reverts back to the employee at the end of the lease, the employee is responsible for paying the GST on the residual.

Fringe Benefits Tax (FBT) is payable on the motor vehicle, and this expense is normally passed on to the employee. The amount of FBT depends on the kilometres travelled each year or amount of business use. The higher the kilometres and business use, the lower the FBT.