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The Pub For General Automotive Related Talk |
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#61 | ||
GT
Join Date: Apr 2005
Location: SYDNEY
Posts: 9,205
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What if i buy it and sell it than buy a 2010 model and lease it i may be better off doing that
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#62 | ||
Regular Member
Join Date: Apr 2006
Location: Bayswater, Vic
Posts: 197
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so long as the used car u purchase hasn't been leased via your employer before, then the fbt base value will be based on the market value of the car
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#63 | ||
FF.Com.Au Hardcore
Join Date: Feb 2008
Location: Perth, Northern Suburbs
Posts: 4,941
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Getting tax advice from your mates seems to be a great Australian institution.
Salary sacrificing a vehicle is only beneficial when the total cost using the statutory method is less than it would otherwise be using only operating costs. So if you have you own business, you want your company to buy cheap vehicles (meaning a small taxable value), and then pay all the fuel, maintenance, and repair costs. “20%” has nothing to do with the tax rate and nothing to do with how much you use the vehicle. It’s not fair and its not reasonable. If you were an employer using ONLY the statutory methods, the tax act allows you a deduction of 12% of the value, but then says the value of the fringe benefit is 20%. (But it is what it is, and is still beneficial when the value of the vehicle is low.) The biggest problem with Novated Leases is that the examples showing you how much you “save” are based on the ludicrous presumption that without the salary packaging you would still choose to lease your vehicle at the outrageous rates the finance company is proposing. I recently looked at one proposal, did a few calculations to back-calculate the interest rate, and discovered the finance company was trying to charge 27% interest. I am a Registered Tax Agent, and CPA with 20+ years expereince in FBT. If anybody wants some free specific advice, please PM me. |
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#64 | ||
GT
Join Date: Apr 2005
Location: SYDNEY
Posts: 9,205
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Crazy daz . Im on a mobile now but i will pm you soon for Advice thanks . I can visit and pay you also if you are in sydney for some taylored advice
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#65 | ||
Workshop & Performance
![]() Join Date: Jan 2005
Location: Hewett SA
Posts: 4,123
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I've novated new, and novated used. In the over 25k bracket. My best results were a well selected near new 1 to 2 yr old vehicle. All I see now are my fellow novaters rethinking doing it again. Anything to me which could impact new vehicle sales and send any proportion of these guys back to used cars is madness in today's conditions. Is this to placate the environmental front? Because I don't see how it can help our already shrinking car industry.
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When close is good enough and the 6 MPS in the driveway has FoMoCo written all over the place. Xr5 for sale shortly...just not a hatch guy |
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#66 | ||
powered by Ford
Join Date: Jul 2008
Location: Brisneyland
Posts: 362
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Its not about the car industry, its about plugging up leakage in the tax system - ie Wayne wants us all to pay more tax.
Impact on new car sales is an unintended consequence if people choose to retain or purchase second hand vehicles and the average age of the car fleet increases somewhat. Anyhow, I'm of the view that the old system was flawed and this is a step in the right direction. Wonder when they'll have a go at negative gearing...;)
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Daily Driver: 06 BF Fairmont Family Wagon: 05 SY Territory TX AWD Sunday Driver: 83 Alfa Romeo GTV6 Racer: 72 Welsor-Ford Clubman Sports-1300 |
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#67 | |||
FF.Com.Au Hardcore
Join Date: Dec 2004
Posts: 723
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Spot on crazy Dazz, I did the sums in the last year going through my only option working for a large retailer for salary sacrificing and their interest rates were just nudging 20% They were marginally better than doing it myself but if their interest rates were reasonable it would have been far better, how they get away with it is amazing. Absolute rort.
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SZ Territory Titanium |
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#68 | ||
GT
Join Date: Apr 2005
Location: SYDNEY
Posts: 9,205
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i know the interest rates are high , but i always felt quite infront leasing .
my net out of pocket weekly expense was $240 , $100 of that was going towards fuel , $20 for rego $20 for insurance $15 for tyres and $10 for maint , plus $2.50 redundancy cover and $2.50 for replacement car cover if the car is off the road . thats $170 in running costs . which left $70 per week for finance on $34000 after 3 years the residual of $16300 , means its was definately infront leasing versus private . if i took out an 9% car loan over 5 years , and i would have to have paid $162 per week for finance and would owe $16000 now also so 162 -70= 92 . thats $92 per week i saved over 3 years . SO TO have the same bottom line after 3 years leasing was $240 pw , privately buying would 've been $332 pw. so leasing has brought me $14300 in front over 3 years . . those savings have now been taken away on new cars and the savings would be closer to $40 per week at 20% FBT on a new vehicle . so it is still better to lease , even at 20% . however in my case re leasing my car would double the FBT CLOSER TO 40% in comparable terms , so in my case re leasing my xr6 has no benifit , i 'm better off buying it . however , i seem to think now , if i buy my xr6 at lease end , and sell it , and buy another car exactly the same and lease it , it becomes tax effective with benifits again , as it is deemed a new lease , rather than a lease extension . stupid , but i'm just giving the figures i have worked out on . |
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#69 | ||
FF.Com.Au Hardcore
Join Date: Feb 2006
Posts: 1,224
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Very interesting... I didn't realise that if i re-leased my current car after the 2 year lease that i'd still be paying FBT on the original purchase price... I suppose if i had taken a 4 year lease, i'd be paying FBT on the original purchase price for the 4 years. I guess it does make some sense that i should pay FBT on the same price if i decide to extend my lease from 2 to 4 years on the exactly the same car.
Had i known that the FBT would remain 20% of the original purchase price it may have swayed me into a different car or a longer lease... I will more than likely go a different car at the end of this lease now. |
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#70 | ||
Workshop & Performance
![]() Join Date: Jan 2005
Location: Hewett SA
Posts: 4,123
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I find the hidden benefit of leasing is getting new cars past the missus, makes it all worthwhile. 'Its part of my package love'. A priceless factor that should not be ignored.
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When close is good enough and the 6 MPS in the driveway has FoMoCo written all over the place. Xr5 for sale shortly...just not a hatch guy |
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#71 | |||
FF.Com.Au Hardcore
Join Date: Jan 2009
Posts: 2,146
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Wanting to do this with a two year old XR6. Makes alot of sense to me |
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#72 | ||
Starter Motor
Join Date: Sep 2012
Posts: 5
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I recently moved from the UK to Melbourne and was a little confused with the whole novated lease thing. I've always had a company car in the UK and never heard the term novated lease before. Any way I found a novated lease company which I would definitely recommend. They've been working with my present company for years but have been really helpful since day 1
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#73 | ||
Starter Motor
Join Date: Sep 2012
Posts: 5
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Oh I would definitely recommend watching the "Flip your thinking" video. Explains everything pretty well.
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