On Tuesday 16th July 2013, the Federal Government announced the proposed removal of the FBT tax concession for personal use on a novated lease vehicle. This proposed change, if passed by the current Government will remove the statutory formula method used for both salary sacrificed and employer provided vehicles.
Impact on Novated Leases signed on or before Tuesday 16th July 2013
For customers that have signed to proceed with a novated lease on or before Tuesday 16th July 2013 please note:
- This lease once delivered will be subject to the old Statutory Method of FBT calculation, ie. No change
- Your lease will only be impacted by the Federal Governments proposed FBT Legislation change IF there is a material variation to your lease. Example: Change of employer/employment/kilometres/decrease in budget
Impact on Novated Leases signed on or after Wednesday 17 July 2013
You can still benefit from taking out a Novated Lease.
- It is important to note that this legislation will need to be passed through Parliament for these proposed FBT changes to occur.
- For anyone who has signed the acceptance of a Novated Lease on or after Wednesday 17 July 2013 you will still be able to receive the FBT tax concession (the current Statutory Method of FBT Calculation) up until 31 March 2014.
If the current Government is elected, you will receive the benefits listed below, including the FBT Tax Concession until 31 March 2014. After 31 March 2014, your benefits will be restricted to the list below.
- Your choice of vehicle through LeasePLUS’ Preferred car dealerships, offering significant Fleet discounts
- Fleet discounts on vehicles servicing, maintenance and tyres obtained through LeasePLUS’ Pre-negotiated Parts and Labour Rates
- Do not finance the GST component on the purchase price of the vehicle up to the luxury car tax threshold
- Do not pay GST on the vehicles running costs
- No upfront deposit required
It is important to note that if the current Government is not elected you will continue to receive the benefits listed above as well as the current FBT Tax Concessions for the term of your lease.