Novated Car Leasing
What is a Novated Lease ?
A novated vehicle lease is an arrangement between you, your employer and the novated lease provider as the financier and fleet manager.
It enables you to lease a vehicle of your choice while enjoying the tax-effective benefits of financing the vehicle and its operating costs from pre-tax or a combination of pre and post-tax salary.
How does Novated Lease work?
You enter into a finance lease with a lease provider, and then a second document (an agreement) is used to transfer some of your lease obligations to Whizdom.
Once the agreement is in place, Whizdom deducts the regular payment from your salary and then remits this amount to lease provider to pay for your car’s running costs.
What are the benefits of a Novated Lease?
Part of vehicle costs is deducted from your salary before tax and you will pay less tax on your salary. Pre-tax savings are on both lease and vehicle operating costs
If you have a fringe benefit tax exempt motor vehicle, all of vehicle costs are deducted from your salary before tax – please check your eligibility with the Whizdom Finance Team
A potential tax-free lump sum benefit at lease expiry
GST free motoring
Eliminate FBT liability with post-tax contributions via Employee Contribution Method (ECM)
Option to package a second-hand vehicle (subject to terms and conditions)
The vehicle is registered in your name, so no stamp duty if purchased at lease end
Healthy discounts on purchase price and operating costs
Transfer to your new employer or purchase outright if your employment is terminated (subject to terms and conditions)
How to apply for a Novated Lease Or transfer an existing lease
Seek for professional advice in advance if needed
You will need a lease provider for managing novated car leasing. If you do not have a preferred lease provider, contact Whizdom Finance Team for our default lease provider options
Notify Whizdom of the decision of taking or transferringthe novated lease by filling out the salary sacrifice novated lease request form. Employees can choose from any approved leasing company
Once the request form is accepted by Whizdom Finance Team, you can directly apply for a novated lease or notify your current lease provider regarding the transition. Please complete forms and agreements required by the lease provider and feel free to provide the Whizdom Finance Team email address firstname.lastname@example.org to them for signing any set-up forms
End of Lease
When advised that your lease has ended, Whizdom will undertake a full package reconciliation for that vehicle benefit, showing either an overall surplus or deficit. If there is a surplus this will be returned to your payroll to be credited to you. If there is a deficit you will be required to pay this to Whizdom within 7 working days of receiving the final reconciliation.
The reconciliation takes into account the following:
Deductions collected from your payroll by Whizdom
Lease payments paid to the lease provider
Operating cost reconciliation provided to Whizdom by the lease provider
Actual FBT liability as at the end date of the lease
Any balances pre-Whizdom transferred from your employer
You should notify the lease provider about your termination with your current employment. Your lease provider should contact you to discuss your options.
Once the lease provider has advised Whizdom that your lease has ended, Whizdom will undertake a Final Package Reconciliation for that vehicle.
This will show either an overall surplus or deficit position of your package. If there is a surplus this will be returned to your payroll to be credited to you. If there is a deficit you will be required to pay this to Whizdom within 7 working days of receiving the final reconciliation.