Yes! In most cases you’re not limited to any particular car type, model or make. You’re not restricted to just new cars with a novated lease, either – you can lease a used car, or even your existing vehicle. (Some conditions may apply and the age of the car you wish to lease needs to be considered.)
Whether you drive fewer than 10,000 or more than 50,000 kilometres a year, a novated lease is a great way to finance a car. And you could save on tax.
Yes. The claim “you need to earn big to benefit from a novated lease” is probably the main myth to debunk.
For example, an employee earning $90,000 could save more than $1,531 a year on a novated lease.
You don’t pay GST on the purchase price of a new car on a full maintained lease, instantly saving you thousands, and then there’s the convenience factor: all your car’s running costs – fuel, servicing, registration, insurance – are bundled into one regular payment, meaning bill shock is a thing of the past.
So you’re saving time and money – and reducing your stress levels.
Assumptions: The estimated potential tax benefit is over the full-term of the lease, is exclusive of GST and is based on the assumption that you would salary package using Employee Contribution Method (ECM) or Fringe Benefits Tax Exempt Method. The Fringe Benefits Tax Exempt Method is only used for eligible electric vehicles under the luxury car tax threshold of $91,387. Payment includes: Your car payments, fuel or charging, registration, tyres, insurance, scheduled servicing, fleet management fee and are exclusive of GST . The estimated annual benefit will vary depending upon salary, employment circumstances, selected benefits and applicable tax treatment. The example assumes you earn $90,000 a year, drive a $34,000 vehicle under a 5-year lease, with an annual distance travelled of 15,000 kms and a 28.13% residual value. GST of 1/11th is payable on your ECM contributions. State Stamp Duty rates apply. PAYG tax rates effective 1 July 2024 have been used.
Hold the GST.
That’s right – when you source a new car through Maxxia, you don't pay GST on the purchase price.
Potential tax savings.
Because part of your novated lease payments come from your pre-tax salary, your taxable income could be less. Once your deductions commence, your payslip will show the pre- and post-tax deductions made to Maxxia relating to your novated lease. With a regular car loan, you’d be making all loan and running expense payments with your post-tax salary – and giving more to the taxman.
Access to competitive third-party pricing.
As one of Australia’s leading novated lease providers, Maxxia has long-held relationships with suppliers and insurers nationwide, and can help you get competitive prices. We also deal directly with your mechanic on the servicing and maintenance of your vehicle.
Roll up, roll up.
Cruising along an open road in your new car aside, it’s the convenience of a novated lease that many enjoy. In addition to your car repayment, all of those dreaded running costs – fuel, servicing, insurance and, most pertinently, registration – are rolled up into one regular payroll deduction. You could save on tax!
Near the end of your lease – usually one to five years – Maxxia will contact you to discuss your options. You may be able to:
With people changing careers more than ever, this is a likely scenario for many people. But you have a number of options available, including:
Circumstances change, markets fluctuate and all manner of other variables can push your expenses north or south. But Maxxia is available to help.
If you are spending MORE than budgeted…
Maxxia will contact you to discuss increasing your regular payments to ensure you can cover the higher amount. You should also monitor your online statements regularly and contact Maxxia if you notice your budget is being overspent. Maxxia can adjust your deductions even sooner.
If you are spending LESS than you budgeted…
You can contact Maxxia to discuss adjusting your running expense budget in line with your usage.
At the end of your lease term Maxxia will reconcile your account within 60 days. If there is money in your account, the funds will be sent to your employer to be processed via payroll, with PAYG to be applied before the balance is paid to you.
You’ve probably seen both these acronyms pop up in your benefit quote or online calculator result.
Fringe Benefits Tax (FBT) is a tax which is applied to benefits you receive from your employer that are not in the form of cash salary or wages. For example, a novated lease is a benefit outside your cash salary or wages – so it is subject to FBT. As of the 1st April 2017, the FBT rate is 47%.
This is where the ECM bit kicks in.
But what does ECM mean? Now a standard novated lease calculation, the ECM – or "employee-contribution" method – helps offset any FBT you may be liable to pay on your novated lease. By making after-tax as well as pre-tax payments you could reduce the taxable value of your car to $0, and minimise the risk of FBT liability at the end of the FBT year (31 March).
Yes, some employers have a specific list of cars available to their employees. Beyond that, vehicles designed to carry one tonne or more and designed to carry 9 passengers or more are also unavailable. So that means some utes are off limits, but some of the Australia’s most popular utes and trucks including the Ford Ranger and Toyota Hilux are OK.
Whether you’re seeking a ‘weekend car’ or something for an immediate family member, you can – dependent on your employer’s novated lease policy – lease multiple new or used cars and get the same convenience and cost-effectiveness. The additional vehicles would be leased under your name and the payments deducted from your salary.
With Maxxia, getting approval for your novated lease is fast and easy. Maxxia can obtain approval of applications within four hours of receiving your request.
Put simply, a Maxxia novated lease is a great way to get into the car you want and get some great benefits. Let’s break down the big-ticket items one by one.
A better deal
Maxxia purchases a large number of vehicles from dealerships across the country, and their nationwide buying power means ensures competitive prices on new cars.
Tax savings
When you finance a new car through a novated lease, you don't pay GST on the purchase price. Plus, when you lease a car, the repayments are made with some of your pre-tax dollars – reducing the amount of tax you pay later.
Convenience
Maxxia manages the administration of your novated lease, including sourcing, financing and maintaining the car. That means less hassle and more enjoying life (and your new wheels).
Easier budgeting
Your car’s costs are rolled into manageable fortnightly payments; which means you’ll no longer be hit with huge bills like registration and insurance. Maxxia can also help you save on your overall running costs, such as fuel, insurance and maintenance.
Your choice of vehicle
You can choose which car you want to drive – whether it's a new, a used car, or your existing car.
Whether you're ready to get started or would like to know more, Maxxia are here to help you start doing more with your money.
Level 21
360 Elizabeth St
Melbourne VIC 3000
Things you need to know: Maxxia is an approved novated lease supplier on the NSW Health Administration Corporation Novated Leasing Panel. Maxxia is one of three approved suppliers of Novated Leases to NSW Health. This general information doesn’t take your personal circumstances into account. Please consider whether this information is right for you before making a decision and seek professional independent tax or financial advice. Conditions and fees apply, along with credit assessment criteria for lease and loan products. The availability of benefits is subject to your employer’s approval. Maxxia may receive commissions in connection with its services. Actual vehicle prices are based on specific vehicle and accessories, prices and savings may vary based on additional options selected with vehicle. Maxxia does not act as your agent or representative in respect of the purchase of any vehicle. Maxxia does not provide any advice or recommendations in relation to the purchase of any vehicle. Any FBT liability incurred as a result of Novated Leasing Agreements will be the employee’s responsibility. All calculations are for illustrative purposes only and are based on the income tax rates for the 2024/25 financial year. The 50% rate for Share of Savings has been applied for all saving examples. As per your employer’s policy, your savings from salary packaging will be shared with your employer. Share of savings will be automatically applied to your salary packaging arrangement. Please contact your salary packaging administrator to confirm the share of savings rate that applies to you. Your actual savings will depend on your income tax bracket, the GST processing method nominated by your employer, administration fees payable under your employer’s salary packaging plan and your personal circumstances.
