As salary packaging continues to gain popularity, more people are faced with the opportunity to take out a novated lease on their vehicle. In a novated lease arrangement, part of your vehicle payments come from your pre-tax salary. Better still, the novated lease includes on-road running costs like services, fuel and registration. This means that your taxable income is reduced and as a result, you may end up paying less tax in a given year.
The concept of having the costs of your vehicle taken care of through a novated lease might sound ideal – it is not for everyone. Cleave Accounting takes the time to get to know our clients and their individual circumstances as well as future financial goals prior to advising an appropriate and viable direction.