What is a Deed of Novation?

In general terms, a Deed of Novation is a binding document in which one party transfers its rights and obligations under a contract to another party.  In order for this to take effect, all three parties must provide consent.

When it comes to novated leasing, a Deed of Novation is the document in which you as the lessee transfer all your rights and obligations to your employer in relation to the novated lease.  Or, if you are the employer, a.k.a the lessor, you agree to take over the rights and obligations of your employee.

The other party in this instance is the …

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Novated Leases for Employers

If you’re thinking about offering a novated lease as an incentive to your staff, or you’ve had some employees asking about novated leasing, you might be wondering what’s in it for you.

In addition to making your workplace more desirable to potential employees, there are a number of benefits involved in novated leases for you as an employer. There are also a few things you’ll need to be aware of. We weigh up the benefits and touch on all the things you need to know.

Benefits of Novated Leasing for Employers:

It rewards your staff and costs you nothing. At no company cost …

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Novated Lease for a Used Car

One of the most commonly asked questions when it comes to novated leasing is whether a novated lease can be applied to used cars, as well as to new cars.  Well, the good news is yes it can.

If you want to lease a car and you’re not sure you can afford a brand new one (or you don’t want a brand new one) don’t be deterred from taking out a novated lease.  A novated lease is entirely possible with a second hand car and can have just as many benefits as leasing as brand new vehicle.

If you’re buying the car …

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Can You Novate an Existing Car?

Did you know that you can organise a novated lease for a car that you already own?

Yes, you read that correctly!

This means that you can, essentially, sell your car to yourself. Of course this may not be worth your while – you may find that the tax implications and costs involved make it an unnecessarily expensive exercise. Or, you could find that there are numerous benefits involved. You will need to do your research and look into whether the pros outweigh the cons.

Are there any restrictions?

As you might be aware, novated leases are not restricted to brand new cars. You …

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What is a Novated Lease?

The costs of running a car can sometimes be too much. Things you might not even think about when you’re looking at buying or leasing a car to suit your budget all add to the cost – petrol, tyres, repairs, regular servicing.  If the thought of all the extra costs above the actual price of the car is causing you stress, novated leasing might be the answer you didn’t even know you were looking for.

We cover the basics of novated leasing including what exactly novated leasing means, how it works and what it involves.

What Exactly is a Novated Lease?

A novated …

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The Advantages of a Novated Lease

You might be wondering why you should choose a novated lease, as opposed to a regular lease or buying a car outright.  There are many benefits involved in a novated lease both for employees and employers which make novated leasing a great option.

If you are thinking about taking out a novated lease and you’re not sure why you should, here are some of the key advantages of a novated lease:

1. Huge tax savings. Not only are the lease repayments paid out of your pre-tax income, but the running costs of the car are paid from your pre-tax income too.  This …

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How Much Money Do I Have to Earn?

A lot of people shy away from the option of novated leasing believing that a high income is a requirement for taking on a novated lease. This isn’t the case. Novated leasing is an option for everyone, whether you are on a high income or not.

There are no requirements that say you need to earn over a particular amount to be eligible for a novated lease.  Whilst this is the case, you might find that a novated lease isn’t actually going to be beneficial to you.   It all comes down to your individual circumstances including how …

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