Announcement

Collapse
No announcement yet.

Novated Leasing

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
  • #1

    Novated Leasing

    Hi does anyone novate lease their prado using the ECM (employee contribution) method. If yes how does pre and post tax amounts show up on your group certificate if at all ?
    My understanding is by making an equal post tax contribution to the running costs to the value of FBT it cancels out the FBT and there for it's not reported on your yearly group certificate.
    Cheers
    Rick
    2010 150 GX
    Dual Batts
    UHF
    Tags: None
  • #2
    Re: Novated Leasing

    Originally posted by Sprocket
    Hi does anyone novate lease their prado using the ECM (employee contribution) method. If yes how does pre and post tax amounts show up on your group certificate if at all ?
    My understanding is by making an equal post tax contribution to the running costs to the value of FBT it cancels out the FBT and there for it's not reported on your yearly group certificate.
    Cheers
    Rick
    Hey Rick,

    By contributing to your FBT using your post tax dollars, you are effectively negating your FBT, therefore there shouldn't be any FBT to report. Your post tax contributions will be included as per your normal GC payments.

    So looking at mine it appears as a run of the mill GC minus a few grand!

    Crammy
    2008 GXL M6 D4D, Silver
    Build Up---> [url]http://www.pradopoint.com/viewtopic.php?t=2315[/url]

    [b]{[/b]ATS Ridepro/Bilstein Lift[b]}[/b] [b]{[/b]Dual Batteries with RanOx Battery Booster[b]}[/b] [b]{[/b]600w Projecta 240v Inverter[b]}[/b] [b]{[/b]Dunlop AT3's / MT MTZ's on Speedy Grande Rims[b]}[/b] [b]{[/b]ARB Deluxe Winch Bar[b]}[/b] [b]{[/b]IPF900XS Spotties - Converted to 50w 4300k HID[b]}[/b] [b]{[/b]35w H4-3 4300k HID Hi-Lo Conversion[b]}[/b] [b]{[/b]ARB Underbonnet Compressor[b]}[/b] [b]{[/b]GME TX3440[b]}[/b] [b]{[/b]T-Max 10,000lb winch[b]}[/b] [b]{[/b]Safari Snorkel[b]}[/b] [b]{[/b]Milford Cargo Barrier[b]}[/b] [b]{[/b]Rhino HD Roofies & AT1410 Roof Tray[b]}[/b] [b]{[/b]60L Waeco[b]}[/b]
    [img]http://www.gifs.net/Animation11/Transportation/Cars/4_wheel_drive.gif[/img]

    Comment

    • #3
      So for example these are the numbers I'm working with for a Grande D4D with all the extras winch,dual batts,cargo barrier,tow pack.
      Pre-Tax Contribution:$16,510.68 $1,375.89 per month

      Post-Tax Contribution:$8,620.40 $718.37

      So on the GC your reportable yearly gross is your salary amount less the $16510.68 so for example if your salary is 100k your group Cert would show in the Gross amount $83489.32 ?

      Also how long have you been in Cairns ? I lived there for 10 years and worked for Ten News up there I had 3 prados as news cars a RV6 90 series a VX 90series and a GX 120 series now I drive a 07 D4D 120 series and my wife drives the Grande with the kids.
      2010 150 GX
      Dual Batts
      UHF

      Comment

      • #4
        So on the GC your reportable yearly gross is your salary amount less the $16510.68 so for example if your salary is 100k your group Cert would show in the Gross amount $83489.32 ?
        Yes that's more or less correct. Have you had any calcs done? It should all be represented in a calculation for you to follow. As with anything to do with tax and especially novating, you should get some sound financial advice before going ahead with it. Depending on how many kms you do in a year, income etc it's not always the best route to take.

        We moved to Cairns in June 07 so just over 12 months, great place, we're absolutely loving it.
        2008 GXL M6 D4D, Silver
        Build Up---> [url]http://www.pradopoint.com/viewtopic.php?t=2315[/url]

        [b]{[/b]ATS Ridepro/Bilstein Lift[b]}[/b] [b]{[/b]Dual Batteries with RanOx Battery Booster[b]}[/b] [b]{[/b]600w Projecta 240v Inverter[b]}[/b] [b]{[/b]Dunlop AT3's / MT MTZ's on Speedy Grande Rims[b]}[/b] [b]{[/b]ARB Deluxe Winch Bar[b]}[/b] [b]{[/b]IPF900XS Spotties - Converted to 50w 4300k HID[b]}[/b] [b]{[/b]35w H4-3 4300k HID Hi-Lo Conversion[b]}[/b] [b]{[/b]ARB Underbonnet Compressor[b]}[/b] [b]{[/b]GME TX3440[b]}[/b] [b]{[/b]T-Max 10,000lb winch[b]}[/b] [b]{[/b]Safari Snorkel[b]}[/b] [b]{[/b]Milford Cargo Barrier[b]}[/b] [b]{[/b]Rhino HD Roofies & AT1410 Roof Tray[b]}[/b] [b]{[/b]60L Waeco[b]}[/b]
        [img]http://www.gifs.net/Animation11/Transportation/Cars/4_wheel_drive.gif[/img]

        Comment

        • #5
          Sprocket,

          I have got my Prado on a novated lease and the benefit of ECM is dependent on your tax bracket. The calculation for the FBT payable on the lease is:

          Capital Value X Statutory Fraction X 46.50% X 2.064662
          (46.5% is the top tax bracket + medicare levy)

          If you can pay a post tax amount equivalent to your FBT liability and be paying this at a tax rate lower than 45% then you benefit from ECM. So for the 2008/2009 financial year where the top tax bracket starts at $180,000, your taxable income after paying lease payments and running expenses would need to be less than $180,000 for you to benefit.

          Most novated lease calulators show both options and a comparison for your salary.

          ** This is not financial advice !

          Joe
          2008 VX D4D
          Polaris 3119 GPS, Reverse Camera, Scangauge II, Sovereign Bullbar, Toyota Towbar, Safari Snorkel

          Comment

          • #6
            Thanks Crammy,
            Yep as always good financial advice is vital . I have an accountant in Cairns on Sheridan St I can highly recommend and they have run the numbers and our payroll manager is very helpfull but I just wanted to get real world feedback so I don't get a nasty suprises especially when dealing with centerlink for the Family Tax Benefit etc.
            Cheers
            Rick
            2010 150 GX
            Dual Batts
            UHF

            Comment

            • #7
              Thanks Joe
              My professional finacial advice is that it's worth doing. But can I ask by sacrificing the lease payments and making post tax payments to take FBT out of the picture , on your group certificate the amount listed as income is what would be your gross salary less the lease payments ?
              Cheers
              Rick
              2010 150 GX
              Dual Batts
              UHF

              Comment

              • #8
                Rick,
                The gross salary on my group certificate is normally my gross salary minus the pre-tax contributions. The post tax contributions are part of the gross salary. So the 'ECM' method made my gross salary on my group certificate higher by the amount of the ECM contribution, when compared with non-ECM method. BUT it did save me money.

                I used this calculator to compare the ECM and Non-ECM options
                https://secure.interleasing.com.au/new_ ... ulator.asp

                Joe
                2008 VX D4D
                Polaris 3119 GPS, Reverse Camera, Scangauge II, Sovereign Bullbar, Toyota Towbar, Safari Snorkel

                Comment

                • #9
                  Don't count of FBT not to be displayed on your tax certificate for making
                  lease decisions... There are new rules coming in affect either this or next financial year, where the FBT will be shown on your group cerificate irrelevant if your Pay FBT from before or after tax dollars....
                  [color=blue][url=http://www.pradopoint.com/showthread.php?12128-2004-120-GXL-V6-Petrol-Buildup-*Warning-Picture-Heavy!*&highlight=picture+heavy][b]My Prado Buildiup Since 2004[/b][/url][/color]
                  [b]2004 120 GXL V6 4sp Auto D694 LTs and MTRs with Kevlar (best of both worlds )[/b]

                  [url=http://www.fuelly.com/driver/lc120man/prado][img]http://www.fuelly.com/smallsig-metric/48063.png[/img][/url]

                  Comment

                  • #10
                    well

                    well.....I use to work for the Tax office and explored salary sacrificing a vehicle in detail. Tax rates have changed since I was there and the benefit is a lot less now than it was when I was on the top rate.

                    I am sure you have all done the figures and received top financial advice.

                    My bottom line measures in the end were.....do I do 20,000, 30,000 or 40,000 kms or whatever, a year normally? If I don't, how much more is it going to cost me to do all these excess kms by having a leased vehicle?

                    Secondly, do I usually buy a new car and swap it over after a couple of years, or do I normally buy a low mileage vehicle and hang on to it for a fair amount of time and get good use out of it when i really want to? Thus what does it normally cost me per year to run a good condition vehicle compared to what a leased vehicle would cost per year?

                    What is the buy-out figure looking like at the end of the lease? Is it that good really when i have just run up 80k or more on this vehicle in a short time compared to a low mileage good condition used vehicle?

                    Lastly how much am I really saving in tax after factoring in the additional costs of running a vehicle at a rate I wouldn't normally do?

                    Reducing tax is not always the best measure of savings overall. My advice is don't get fixated on the tax saving.

                    Everyone has a different set of circumstances when considering leased vehicles and salary sacrifice, so i am not casting aspersions on anyone who found a lease to their advantage....just offering my personal view on the matter.
                    Serious Crusty Curmudgeon, Curmudgea West
                    [url="http://www.ozebook.com"]www.ozebook.com[/url]

                    Comment

                    • #11
                      Thanks for all your feedback and personal experiences that's what I like about this forum. In the next couple of months I may have a item in the For Sale section if the dealer doesn't offer me a decent trade on my private sale.
                      Cheers
                      Rick
                      2010 150 GX
                      Dual Batts
                      UHF

                      Comment

                      • #12
                        Guys - another thought....i used to have a SS vehicle but was kinda put off by the inability to "mod" it...

                        Now i have a Prado - and to me having the freedom to do what i want to it is a worthy consideration.
                        Easter-08 White GXL D4D Auto - delivered in near record time (5d) from placement of order. Has turned into a "Bermuda" or "Swiss fund" where $ get lost or converted into mods/accessories.

                        Comment

                        • #13
                          Re: Novated Leasing

                          One other issue with novated leases in NSW ...

                          The NSW goverment has recently changed the rules regarding toll refunds. If you happen to live in Sydney's Southwest, and travel via the M5 Tollway, you are no longer entitled to claim "cash-back" ( toll refund ) if you opperate a leased vehicle. This can add a substancial cost to running your leased vehicle, especialy if that is the way you travel to and from your place of employment each day.

                          Novated leases were once concidered as "private novated leases" and the vehicle could be registered as a "private vehicle". This was the only requirement by the toll operator to be entitled claim a refund. Now novated leases are now concidered as "business novated leases" and the vehicle must be registered as a "business vehicle. By registering the vehicle as a "business vehicle" you are no longer eligibal to to claim the refund.

                          Bazza.
                          [i]I'd rather laugh with the sinners than cry with the saints![/i]

                          Comment

                          Previous template Next
                          canli bahis siteleri bahis siteleri ecebet.net
                          mencisport.com
                          antalya escort
                          tsyd.org deneme bonusu veren siteler
                          deneme bonusu veren siteler
                          gaziantep escort
                          gaziantep escort
                          asyabahis maltcasino olabahis olabahis
                          erotik film izle Rus escort gaziantep rus escort
                          atasehir escort tuzla escort
                          sikis sex hatti
                          en iyi casino siteleri
                          deneme bonusu veren siteler
                          casibom
                          deneme bonusu veren siteler
                          deneme bonusu veren siteler
                          betticket istanbulbahis
                          Working...
                          X