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LEASEPLAN NOVATED LEASES

LEASEPLAN NOVATED LEASES. AGENDA. What is a novated lease Why Novate? Why Novate with LeasePlan ? Products and Services Fringe Benefits Tax (FBT) LeasePlan Online Motor Vehicle Reports SalaryPlan Customer Service and Support. What is a novated vehicle lease?.

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LEASEPLAN NOVATED LEASES

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  1. LEASEPLAN NOVATED LEASES

  2. AGENDA • What is a novated lease • Why Novate? • Why Novate with LeasePlan? • Products and Services • Fringe Benefits Tax (FBT) • LeasePlanOnline • Motor Vehicle Reports • SalaryPlan • Customer Service and Support

  3. What is a novated vehicle lease? • A three way agreement – LeasePlan, Employee and Employer • Employee packages the finance and running costs • Employer agrees to salary deduction and pay LeasePlan • LeasePlan provides vehicle finance and fleet management services

  4. Why novate? • Reduce taxable income • GST free vehicle purchase and vehicle running costs • Your choice of vehicle (new or used* or existing*) • Lease one or more vehicles** • The potential to build equity for tax free profit • Convenience – set and forget fortnightly budget • * Used vehicles can be financed - age cannot exceed 4 years or 100,000km at start of lease and 7 years 200,000km at end of lease • **Subject to employer requirements

  5. Why novate WITH LEASEPLAN? • Customer service – support at every stepExperts to help you • Novated Lease consultants will call you to provide assistance • Account Manager on-site fortnighly meetings with UNSW employees • Volume buying discounts • LeasePlan Online – real time quotes • Monthly Motor Vehicle Reports (MVR)

  6. Why novate WITH LEASEPLAN? • Professional maintenance control • Residual value flexibility (novated finance lease) • No Hidden Costs: • No establishment fees • No start-up document fees • No upselling of unnecessary items e.g. warranties, tinting • Fully Open and total disclosure of every element of the novated lease monthly payment: • residual value • interest rate

  7. PRODUCTS & SERVICES • Choice of Novated Finance Lease ProductCarPlan Standard or Redundancy Protection Feature • Vehicle finance – competitive interest ratesRunning Costs Included • Fuel (Caltex fuel card supplied) • Maintenance/Servicing • Registration and renewals • Replacement Tyres • LeasePlan Total Cover comprehensive insurance • Roadside Assistance (if applicable)

  8. Fringe benefits tax (FBT) • Fringe Benefits Tax (FBT) is applied to vehicles that are packaged • From 1 April 2014, all leases subject to a flat 20% FBT rate regardless of distance travelled • Eliminate FBT using the Employee Contribution Method (ECM) • post tax payment

  9. Employee contribution method (ECM) • A post-tax contribution is made towards the running cost of your novated lease to eliminate the FBT liability • Makes novated leasing more attractive • Increases the salary packaging advantage and improves the tax-effectiveness • LeasePlan Online quoting tools will calculate the ECM showing the impact on your disposable income • The package cost needs to be split into two parts in the payroll: • Pre-tax component: becomes the tax free cost of the vehicle • Post tax component: eliminates/reduces the FBT Liability

  10. LEASEPLANonline • www.leaseplan.com.au • UNSW customer code: 1000040154 • Employee Driver Registration • Create and compare multiple quotes • Complete credit application and vehicle order • Feel free to contact LeasePlan at any time: 1300 668 572

  11. LeasePlan Online – salary ANALYSIS • Novated lease quotation – salary package analysis • Indicates tax effectiveness of novated lease • ECM (pre-tax & post tax payments) vs 100% pre-tax

  12. Motor vehicle reports (MVR) • Issued monthly • Budgeted costs versus actual expenses • Opportunity to adjust if required • MVR history available at LeasePlan Online

  13. SALARYPLAN’S ROLE • SalaryPlan is your salary packaging administrator • They will manage your salary deductions for your LeasePlan novated lease • SalaryPlan are their to support you with any queries you have in regards to the deductions and FBT on your novated lease. • SalaryPlan has a dedicated team of specialists locally, available to assist employees with any queries relating to salary packaging of their novated lease: • Phone: 1300 790 140 • Email: support@salaryplan.com.au

  14. Customer service & Support • www.leaseplan.com.auLeasePlan Online customer code: 1000040154NovatedDriver section (supplier finders)Access news, tips, FAQ’s to make the most of your novated lease • User Guides and CarPolicy (access via UNSW website: http://www.facilities.unsw.edu.au/staff-contractors/motor-vehicles • Novated Leasing Consultants: • Phone: 1300 668 572 • Email: cservice@leaseplan.com.au • Visit www.leaseplan.com.au/novate-driver • Periodical newsletters / Monthly Motor Vehicle Reports

  15. Disclaimer This presentation should be considered guidance only.As personal circumstances vary LeasePlan recommend you seek your own independent financial / taxation advice regarding novated leasing.

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