Southgate’s consultants can tailor a Novated Lease to suit your preferred payment budget and desired residual amount based on a lease term of between 1 and 5 years. Residual values are set in accordance with the minimum residual values announced by the Australian Taxation Office in ATO Interpretive Decision ATO ID 2002/1004 ‘Car Lease Residual Values’ , as set out in the table below.

Although Southgate can arrange higher residuals, it is suggested that you use the lowest residual to maximise the tax savings achieved by your salary packaging arrangement. Lease payments made through your salary package are Income Tax and Fringe Benefits Tax free, whereas residual payments are made from your post-tax salary. Having a lower residual not only increases the tax savings but also increases the likelihood that you will build equity (or avoid a negative equity) in your car over the term of the lease.