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Employer Benefits:
- EMPLOYER OF CHOICE: Make your organisation an "Employer of Choice" by providing a more flexible and attractive remuneration package and generating employee goodwill. Improve staff retention by providing greater employee benefits without the need to increase salaries.
- INCREASE EMPLOYEE INCOMES: Increase net income for your employees without cost to the employer.
- REDUCE ADMINISTRATION: Southgate removed the administration burden that occurs from providing salary packaging in house, taking care of all the day-to-day packaging management, including education, dealing with staff
ongoing needs and questions, ITC calculation, FBT calculation and reporting. This can be achieved at no cost to the employer.
- OFF BALANCE SHEET VEHICLES: Providing employees with a vehicle via a novated lease means the vehicles are not recorded on the employers balance sheet and the employer
is only liable for the rental whilst the employee remains in employment. As such the ultimate responsibility is borne by the employee who takes the vehicle with them if they leave your employ.
- NO UNWANTED VEHICLES: Providing employees with a vehicle via a novated lease prevents the employer being caught with unwanted vehicles when an employee leaves.
In addition there are no early termination penalties for the employer as the responsibility for the vehicle reverts back to the employee.
Employee Benefits:
- INCREASED NET INCOME: Employees can benefit from Salary Packaging by restructuring their pre-tax income by exchanging some of the cash salary for their day-to-day living and
lifestyle expenses. These expenses are packaged either tax free or are concessionally taxed thereby enabling them to increase their net disposable income.
- INVESTMENT FOR THE FUTURE: Superannuation can be salary sacrificed without being subject to income tax or FBT. The superannuation contributions tax of 15% would still apply, however the rate of tax
is likely to be less than marginal income tax rate of most people. Not only are you saving on income tax, but you are building a nest egg for your future.
Benefits of Novated Leasing:
- TAX ADVANTAGES: Motor vehicles receive concessional tax treatment when provided in the form of a novated lease. This means that most people can enjoy significant tax savings that may amount
to thousands of dollars each year. The reason for this is because only the value of the vehicle is subject to FBT (Fringe Benefits Tax),
the fuel, lease payments, servicing, maintenance, tyres etc are all able to be packaged income tax and FBT free.
- FLEXIBILITY & CHOICE: Under a novated lease the employee can choose their own style vehicle to suit their own tastes and needs. Should an employee ever leave their employer the original novated
lease agreement expires and the employee can take the vehicle with them. In this case the employee may choose to create a new Novation Agreement with their next employer.
- PRICING ADVANTAGES: When packaging a novated vehicle you will usually be entitled to preferential fleet pricing from the manufacturers. Southgate's strong motor industry background also
enables us to negotiate preferential pricing direct with manufacturers and our large annual vehicle orders enable us to negotiate the most competitive prices at dealer level.
Disclaimer: We recommend that prior to entering into any financial arrangement that you seek independent financial advice.
The information contained herein is of a general nature only and does not take into account your personal circumstances.
Southgate Financial Services Pty Ltd, its agents, employees and lenders accept no responsibility for any loss that may arise.
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