Baptist Care SA employees are eligible to access salary packaging through CBB and novated leasing through our partner, StreetFleet. Like CBB, Street Fleet are totally dedicated to helping you save as much money as possible every year. However, there are a few misconceptions floating around about novated leasing, so we decided to take the opportunity to bust some of them!
#1 A novated lease will use up my salary packaging allowance
No it won’t – the before and after tax deductions for your novated lease are in addition to your $15,899 salary packaging limit. You’ll still have your full salary packaging allowance to use on your everyday expenses and bills.
#2 There’s no difference between a novated lease and a car loan
No, this is incorrect. A car loan involves borrowing money to purchase a car, which you then pay back (including running expenses) with post tax dollars. Whereas a novated lease is a loan for a car that is packaged with all of your running expenses and repaid with a mix of pre and post-tax dollars to maximise your tax savings. Plus, you access fleet pricing on most makes and models, and you will save on GST on the purchase price. Better yet, you won’t pay any GST on maintenance and servicing through approved providers, which keeps the running costs down.
#3 I can’t get a novated lease, because I’d rather choose my own car
A novated lease through StreetFleet can cover any car you want – yes, it can be the make, model and even colour of your choice!
#4 I can’t buy a second-hand car with a novated lease
Yes, you can – but there are some rules. You can source the second-hand vehicle yourself from a dealership or privately, with some conditions, the main one being that the car cannot be more than 10 years old at the lease end. For example, if you take out a 5 year lease, the car must not be more than 5 years old at the time of purchase.
#5 If I leave my job, my employer will take my car and I’ll be left without a vehicle
Not at all. The car is in your name. If you leave your employer, the novation simply stops, meaning that you will have to arrange to make the payments yourself; you also have the flexibility to transfer the novated lease to your new employer; or pay out the lease early.
If you’d like to learn more about novated leasing, you can check out the StreetFleet FAQs webpage, or call the friendly StreetFleet team on 1300 273 359.