Novated Car Lease
Northern Health Salary Packaging
What is a Novated Lease?
A novated vehicle lease is a three way arrangement between you, your employer (Northern Health) and the finance company where the obligation for the payment of lease rentals is transferred (novated) from you to Northern Health for the term of the agreement. Northern Health makes pre and post tax deductions from your fortnightly gross salary and pays your lease rental and operating costs on your behalf.
What are the benefits?
A fully maintained novated lease allows the full running costs of your vehicle to be deducted from your pre-tax. The running costs include fuel, insurance, registration, servicing and tyres, car wash and detailing and any other vehicle operating expenses. This enables you to lower your income tax and increase your take home pay.
Who is eligible for a Novated Lease?
Northern Health allows permanent part-time and full-time employees to enter into a novated lease.
What is the term of a Novated Lease arrangement?
A novated lease may be entered into a period of anywhere between 1 -5 years, however at the end of the lease term the vehicle cannot be more than nine years old.
What happens at the end of my Novated Lease?
At the end of the lease term, you have the option to purchase the vehicle for its residual value, refinance the car, or simply sell it. Your Novated Lease provider will contact you to discuss your options prior to your lease end date.
Who do I contact to arrange a Novated Lease?
Northern Health has three Novated Lease providers you can contact to find out more information and obtain a quote.
Automatic Lease Packaging (ALP)
Phone – 1300 309 343
Website – www.1alp.com.au
Eziway Car Leasing
Phone – (03) 8768 5777
Website – www.eziway.net.au
Phone – 1300 123 123
Bec Timms – 0421 593 250
Website – www.maxxia.com.au
What happens once you have accepted your quote?
1.Your nominated lease provider will arrange your finance application and forward you the relevant documentation for signing.
2.A deed of novation agreement is forwarded to Northern Health which for review and approval by the CFO or the Financial Controller.
3.Your Novated Lease is settled.
4.Pre and post-tax deductions as indicated in the documentation from your lease provider are set-up through Northern Health Salary Packaging.
What Fees are charged by Northern Health?
A novated lease arrangement is part of the Platinum Salary Packaging service offering which enables you to package capped benefits of $9,010 per annum, plus un-capped benefits for Meals and Accommodation as well as to enter into a novated lease arrangement. Please refer to Salary Packaging administration costs for further details.
Why is there an additional GST amount charged by Northern Health?
A GST amount of 10% is required to be charged on post-tax contributions and withheld by Northern Health to be remitted to the ATO as part of our monthly BAS requirements. The reason for the deduction is that under a novated lease arrangement Northern Health assumes the lessee's rights and obligations under the lease. This transfer of rights and obligations is agreed to in the deed of novation between Northern Health, the finance company and the lessee (you – the employee). This arrangement results in Northern Health incurring a GST liability which requires an additional deduction to off-set the liability.
How can you find out more?
Contact your Salary Packaging team ator on 8405-8031 or contact our providers for a quote.