1300 Car Lease

What is a novated motorcycle lease?

A novated motorcycle lease is a three way agreement between

• The finance provider
• an employer
• and a employee

How does a novated motorcycle lease work?

Under this a novated motorcycle lease, the employer pays the monthly motorcycle lease rentals on behalf of the employee, and provides the motorcycle for the employee to use as part of their salary packaging arrangement.

If employment ceases for any reason, or the novated motorcycle lease contract is finalised, the Novation ceases and any obligations by the employer revert back to the employee.

Residual and terms

The novated motorcycle residual is the amount that will need to be paid to the finance provider at the end of a novated motorcycle lease. Novated motorcycle lease residuals are set by the Australian Taxation Office (ATO).

Click here for a detailed summary of all residual values and balloon structures. Car Lease Residuals

What are the benefits of a novated motorcycle lease?

• Novated motorcycle lease terms range from 12 to 60 months
• all costs are paid in pre-tax dollars, a Novated Car Lease can be tax effective
• The Interest Rate is fixed for the term of the novated motorcycle lease agreement
• Novated motorcycle lease repayments are fixed for the term
• Lower interest rates due to the vehicle lease being secured against the motorcycle
• GST on the purchase price of the motorcycle is claimed back by the finance provider on your behalf. This lowers the amount financed to the purchase price minus GST
• Subject to credit approval, we will finance 100% of the purchase price
• A novated motorcycle lease is portable and may be re-novated from one employer to another (depending on employer acceptance)
• Choice -you can choose the car that best suits your needs
• We can have you in your new car within 24-48 hours
• You will receive great hands on personalised service from an experienced car leasing consultant

Who should consider a novated motorcycle lease?

A novated motorcycle lease is suitable for any employee who wants to include a motor cycle as part of their salary package, so long as their employer offers salary packaging as an option for employees.

What are the tax implications of a novated motorcycle lease?

GST is charged on the monthly novated motorcycle lease payment and as long as the employer is registered for GST, they can claim this back on their BAS.

GST is also charged on the residual value on the novated motorcycle lease, and as the Novation reverts back to the employee at the end of the lease, the employee is responsible for paying the GST on the residual.

Fringe Benefits Tax (FBT) is payable on the motorcycle, and this expense is normally passed on to the employee. The amount of FBT depends on the kilometres travelled each year or amount of business use. The higher the kilometres and business use, the lower the FBT.

Other leasing options?

If you are thinking about doing a novated motorcycle lease, you may also want to consider a Finance Lease, Commercial Hire Purchase or Chattel Mortgage as other car leasing options.

Need further information?

Either complete our friendly enquiry form and we will call you shortly or call the number 1300 Car Lease (1300 227 532) and talk to an experienced car leasing consultant today.

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