Novated Finance Lease/ Rental Application

NOVATED LEASING - TAX EFFECTIVE SALARY PACKAGING FOR EMPLOYEES TO ACQUIRE LAPTOP COMPUTERS

Income tax and GST savings can be provided through a Westminster National finance package utilising a novated lease agreement within the employee’s remuneration package. For Example: Where an employees’ marginal tax rate is 48.5% (including Medicare levy) a laptop costing $3500 including GST can be purchased utilising a Novated lease for a tax effective cost of circa $2,016. That is, a saving of 42%!

Under the arrangements, an employee enters into a standard finance lease agreement ($50 is the preferred residual) through Westminster. A novation agreement is simultaneously entered into between the employee, the employer and Finance provider.

The novation agreement effectively transfers the lease obligations (payments) of the employee to the employer for the term of the novation agreement. Therefore the employer or remuneration manager pays the lease payments directly to the Finance provider. The amount of the lease payment is deducted from the salary of the employee effectively reducing before tax earnings.

If an employee leaves the employment of the employer, the novation agreement ends and all obligations under the lease agreement revert to the departing employee. The employer will have no further obligation to the Finance provider apart from advising them that the employee has left their employment.

Disclaimer:
Please be aware that the information outlined in this section is solely of a general nature and is for information purposes only. All parties seeking to rely on this information should seek their own professional legal and financial advice in order to satisfy themselves, in all respects, as to the product’s suitability for their purpose.

Novated Lease Application Form

* Required Fields

* Employee (Full name)
* Birthdate
Home Address:  
* Street:
* City:
* State:
* Zip:
* Telephone:
Fax:
Mobile:
Driver's Licence No:
* Job Description:
* Years Employed:
* Gross Annual Salary (a copy of a recent payslip(s) will be required as proof of employment)
* Employer (business name):
ABN:
Employer Contact:
* Employer Telephone:
Remuneration Consultant (if applicable)
Telephone:
Salary Packaging Firm (if applicable)
Telephone:
* Equipment:
Equipment Supplier:
Supplier Contact:
Telephone:
Fax:
* Cost:
Term:
Residual:

Quoted Payments:
Insurance Required: Yes NO
Finance Company References:
Telephone:

Individual Statement of Position
 
Liabilities Details Amount Owing
Mortgage
(to whom)
Car/Peronal Loans
Credit Cards
     
Assets Details Value
Property (address)
Vehicles
Cash Investments