| Remuneration packaging is the "Buzz Word" for the nineties
and one of the greatest aspects of this is the Novated Lease. A Novated
Lease takes over the troubles of providing a company car and gives the
employee and the employer some surprising benefits.
This is simply an arrangement where the employee leases a car from a
finance company then Novates the car (via a Novation Agreement) to the
employer who then makes all the lease payments for the duration of employment.
Both the employee and the employer will benefit from this arrangement.
The employee can choose any car he wishes, receive fleet discounts, change
his car at any time, gain equity in the car and purchase it for the residual.
Plus many other benefits.
The employee has his fleet "off balance sheet" which can increase
his borrowing ratios, has no more liability of lease payments after the
employee leaves and substantial saving in employment and administration
costs. Plus many more benefits.
Note - as from June 1998 all novation documents must comply to the Australian
Taxation Office as a "Full Novation". Be assured that we only use finance
companies that fully conform with the ATO ruling and have received notification
from the Australian Taxation Office that they indeed comply.
Contact this office for a more complete overview. |
