Car Novated Leases
Our core services for Queensland Government Employees include:
- Establishing and maintaining a novated lease for an employee, including providing quotes, as well as coordination and execution of the Queensland Government Standard Novation Agreement with the employee, employer and the financier,
- Processing and settling the novated lease (including vehicle delivery),
- To issue and manage the employee’s fuel card/s,
- Manage the employee's trust account from inception to cessation,
- Review accounts, including any amendments as required, and
- Arrange regular payments and reimbursement of novated leasing expenses.
- Statewide also provides additional services that are not within the scope of the Queensland Government contract that employees may or may not choose to procure.
What is a Novated Lease?
- A three way agreement between the employee, employer and finance provider (financier).
- Financial obligations under the employee's car lease are transferred from employee to the employer through a Standard Novation of Agreement.
- Payroll deductions are made by the employer to cover these obligations in a combination of all pre-tax or pre-tax and post-tax (Employee Contribution Method) from the employee's salary. The deductions cover lease payments and running expenses. The pre-tax payments lower the employee's taxable income. This means the tax deducted from the employee's salary by the employer may be reduced depending upon the employee’s marginal tax rate and medicare levy.
- GST is not provisioned as part of the employee's payroll deduction. Any GST incurred is funded independently of employees payroll deductions. GST is credited to the employee's trust account when an expense is incurred so the total amount owing can be paid. The GST is then recouped by claiming it back from employee's employer (Queensland Government Agency, Department, etc.).
- The employee pays any obligations remaining at the end of the lease, or if employment ceases during the lease.
How does a Novated Lease save me money?
As described above, a Novated Lease has the potential for savings on income tax and GST. Potential for further GST savings are possible when purchasing a car through a dealership as the amount financed excludes the purchase price that is normally payable.
In addition, a novated lease transaction receives concessional FBT treatment under salary sacrifice. Prior to entering into a novated lease, the FBT implications and lease terms need to be understood. The benefit of Statewide's experience is that Statewide can explain in detail, all of the issues and potential issues with a novated lease. A novated lease can be a very cost-effective way to own and operate a motor vehicle.
Employees working for Legal Aid, Queensland Ambulance Service, QG Air and Queensland Health should contact their Employer to discuss whether they are eligible to access the Concessional FBT treatment.
Fuel card(s) are issued to the employee with a choice between Ampol (Caltex), BP, Shell and/or United. A fuel card is mandatory for Queensland Government employees.
What are my Novated Lease Options?
Buying a car through a novated leasing arrangement does not restrict or reduce your options. You can:
- Choose a car that suits your lifestyle and budget
- Choose a new or a used car *
- Statewide can arrange a ‘sale and leaseback’ on the car you are driving now.
- Lease terms from 12 to 60 months.
Car Pricing Service - something for free!
Our goal for clients is to ensure that when a client packages a novated lease the car purchase price includes everything the client has requested and is as cheap as it can be. Whether the client uses Statewide's price or uses the price to negotiate a better deal from another vehicle supplier is a matter for the client. Statewide will use the best price that can be negotiated regardless. Having said that, Statewide has a dealer network that readily and competitively prices vehicles for Statewide clients.
Fleet Pricing Discount!
Statewide Novated Leasing Pty Ltd is registered with some of the largest motor vehicle manufacturers in the world as fleet providers. As such, any fleet discount is passed to the client. There are no hidden procurement fees. While Fleet Pricing discount is a service available to Statewide clients this is outside the scope of the Queensland Government contract. Therefore, employees may choose to procure or not procure this discount through Statewide.
For more information on Fringe Benefits Tax click here.
* Please note that as a general rule, a vehicle cannot exceed 12 years of age at end of its lease period and subject to financier discretion.