Company Car

[antigravity]

Hey everyone,

I'm thinking of upgrading my car, but only if I can get it as a company car.

I work for a small business, with less than 10 employees, but is it possible to get a car where the company owns it and reduces my paycheck for the vehicle costs?

Is this possible? And is it common place?

I'd rather do this than get a loan myself and have another debt listed against my name.

Any help would be great

Cheers

Dave

[tab]

Do a search for novated lease on here.....will keep you occupied for months!

In a very broad nutshell, your lease payments are taken out of your pre-payg tax income and the business gets the GST benefit as well. The novation means even though your business can claim the GST input costs if you leave your employer the lease responsibility remains with you.

edit: this thread will get you started...

http://www.fordxr6turbo.com/forum/index.php?showtopic=106

Edited 11/08/08 05:08 AM by tab

[antigravity]

But with a novated lease, isn't in my name? Hence a debt against my name?

I was hoping to get around that if possible.

[tab]

Yeah well the other option is just for you to negotiate a car as part of your salary package, then if you leave the car stays behind.

[senna_T]

You would have to speak to your employer to see what their stance on it is. There can be some good tax benfits for the company with a vehicle, but they are stuck with it if you leave.

With a Novated lease the car is registered in your name and will belong to you if you leave the company

[antigravity]

So a novated lease is a debt against your name?

So say for example, if I went for a home loan and had to declare my existing debts, a novated lease would need to be noted?

I'm hoping to get around that loophole basically.