Novated Lease.

[aniken]

Not an expert, but I think the official position is that you can't claim motor vehicle running costs of any sort if your car is leased and paid for via pre-tax dollars. I think the reason is, you already get tax benefits out of paying for everything pre-tax, so you shouldn't get any more benefit by claiming a deduction.

I used to drive to Uni, and will occassionaly drive to a work-related meeting, but because the car is leased, my tax agent said I couldn't / can't claim these.

[Blonk]

I believe if you are paying pre-tax, you are already claiming 100% costs..... Some post tax payments help with FBT......

You should be getting all GST refunded through your salary..

[God666]

Here are a couple of pages from the ATO website that I grabbed a month ago as I had exactly the same question. The short answer is yes, you can claim for business km travelled in a lease vehicle. This particular scenario is applicable if you do more than 5000km per year for business use. If it is under 5000km, you can claim the 63c (or whatever it is) per km travelled.

vehicle_2.pdf

[scooter]

Not an expert, but I think the official position is that you can't claim motor vehicle running costs of any sort if your car is leased and paid for via pre-tax dollars. I think the reason is, you already get tax benefits out of paying for everything pre-tax, so you shouldn't get any more benefit by claiming a deduction.

Exact same thing as discussed Friday - Some of us were saying as your getting already a tax benefit you cant claim - some were saying you could claim as your paying for the operation and maintenance of the car even though before tax.

There doesnt seem to be anything in concrete about this anywhere.

You should be getting all GST refunded through your salary..

Really!!!!!!!!!! That hasnt happened I know - is that claimed through the tax system or through the company

Here are a couple of pages from the ATO website that I grabbed a month ago as I had exactly the same question.  The short answer is yes, you can claim for business km travelled in a lease vehicle.  This particular scenario is applicable if you do more than 5000km per year for business use.  If it is under 5000km, you can claim the 63c (or whatever it is) per km travelled.

Thanks for that God666 but it doesnt specifically mention a Novated lease however but that's what I expect from a Novated Lease.

Scoot

Edited 07/05/06 07:45 PM by scooter

[God666]

Yeah, the ATO website talks about "lease" vehicles which by definition, a novated lease is. My accountant tells me that "yes, you are getting a tax benefit from a novated lease however, if you are doing work related km in your lease vehicle, you can still claim for that".

I have claimed it the last two years without issue.

[INASNT]

I am paying $320 per week for mine. This gives me fuel, tyres, insurance, rego and maintenance.  24K residual inc. GST.  This lease is 3 years, 25,001km so yours should be cheaper.

I suggest getting a quote from SMB (www.smb.com.au). Paul Arthur is the guy there who has been very helpful to me, ask to speak with him.

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Sorry to dig up old post but, what typhoon did you get for $320/week? And was it new or second hand?

[Buf-Phoon]

$468 p/w everything in. Budget 20000ks for tyres, fuel services etc. Residual $19k

after 3 years.Total allowable before chewing into salary $793 p/w, so a little extra pre tax super

[Flukey]

Hi There

I'm currently paying $1145 p/mth over 48 months with an $18,000 balloon. However I'll sell it before then when the value roughly equals the payout it's usually 2.5-3yrs. My company pays for all running costs.

Big AL

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HP right, not Novated??

[Flukey]

$468 p/w everything in. Budget 20000ks for tyres, fuel services etc. Residual $19k

after 3 years.Total allowable before chewing into salary $793 p/w, so a little extra pre tax super

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So Jules, do you find it works well for you?

I have a HP on mine. I pay ~$800pcm plus all ongoing costs. The last 12 months my car cost me $21K to run ( including my mods ). I get a $15K car allowance plus money back from the tax man each year so my car at most costs me personally about $1000 per a year.

Does novating give you a better result than that???

[INASNT]

$468 p/w everything in. Budget 20000ks for tyres, fuel services etc. Residual $19k

after 3 years.Total allowable before chewing into salary $793 p/w, so a little extra pre tax super

←

So Jules, do you find it works well for you?

I have a HP on mine. I pay ~$800pcm plus all ongoing costs. The last 12 months my car cost me $21K to run ( including my mods ). I get a $15K car allowance plus money back from the tax man each year so my car at most costs me personally about $1000 per a year.

Does novating give you a better result than that???

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How is a hire purchase exactly different to a novated lease?