Income Tax Savings
As a Novated Lease and vehicle running costs are paid from your pre-tax salary, you pay income tax on a reduced taxable income. This means that you pay less income tax, leaving you with increased disposable income for other day-to-day living and lifestyle expenses.

Tax Free Running Costs
Including running costs in your Novated Lease package, allows you to increase your tax savings even more by paying these costs completely free from income tax and FBT. You can include fuel, servicing, insurance and more. See our Motor Vehicle Management program for a complete list of eligible expenses.

Build Tax Free Equity
All Novated Leases arranged by Southgate are established within the ATO minimum lease residual guidelines. This means that you are paying more of the vehicle finance off during the term of the lease, using pre-tax dollars. Should you decide to buy the vehicle at the end of lease and it is worth more than the final residual finance amount, you obtain the benefit of any equity (profit) built up in the vehicle. Any equity realised when you sell the vehicle is completely tax free, further increasing the benefit achieved by your novated lease.

GST Savings
When you obtain a car via a Novated Lease, you make instant savings by the financier purchasing the car free from GST. The financier lease payments are based on the GST free amount, meaning you are borrowing less than alternative forms of finance.

In addition the GST component of your lease and all car running costs can be claimed back from the ATO and returned to your salary package, where allowed for under your employer policy. This effectively means that your entire salary packaged Novated Lease is GST free.

Cheaper Than Paying Cash
When comparing the outright cash purchase price of a car to the total cost of the lease payments and residual over the term of the Novated Lease, a Novated Lease often comes out significantly cheaper than paying cash.

This is achieved for two reasons. Firstly, obtaining a Novated Lease through Southgate allows access to Fleet Pricing discounts that may not apply to cash purchases. Secondly, when deducting the income tax savings achieved from the ability to salary sacrifice (your lease payments and other running costs pre-tax) from the lease payments and finance residual made over the term of the lease, the total out of pocket cost can be thousands lower than the original cash purchase price. Ask our consultants to investigate this further for your chosen Novated Lease arrangement.

Choice of Vehicle
A Novated Lease allows you to choose the car that best suits your needs, without the make, model, size or even colour restrictions that often apply to company cars. Choose the vehicle that suits your style, requirements and budget. You also have the option of a new car, a used car or even your existing car (via a sale-and-leaseback).

Transferable between Employers
If you have a Novated Lease and change employers you can choose to renovate the car with your new employer, subject to your new employer’s agreement to salary package the car. Southgate can even incorporate "Protection Plus" Insurance into your lease to enable you to handback your vehicle if certain unforseen life events occur, such as involuntary unemployment or physical disability.